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The Coalition has revealed more about its promised $5 billion investment into last mile infrastructure.
Speaking at the Housing Industry Association (HIA) Regional Housing Forum in Bendigo on 4 December, shadow minister for infrastructure, transport and regional development, Bridget McKenzie, announced that the Coalition would devote 30 per cent of its Housing Infrastructure Program to regional communities, should it capture the majority in the next election.
The plan, which was announced by Peter Dutton at the end of October, is a major cornerstone of the Coalition’s plan to tackle the housing crisis, with the party promising $5 billion in funding for last mile infrastructure that’s necessary to complete residential construction.
Primarily, the program is intended to pave the way for greenfield development, with Dutton stating that the Coalition decided to focus on detached housing because it was the “cheapest form of housing for first home buyers”.
To be delivered as a mix of grants and concessional loans, they will be provided on a “use it or lose it” basis, with funding to be withdrawn if there’s no progress after 12 months of contracting.
It’s estimated that as many as 500,000 homes could be supported by the program.
The regional allocation was welcomed by the HIA, with chief executive of industry and policy, Simon Croft, calling it “a good step in addressing the critical housing shortages facing regional Australians”.
“The number of Australians moving from cities to the regions continues to grow, and this trend is expected to increase in the coming years. Currently, 8.5 million Australians or one-third of the population are now living in regional Australia,” he noted.
“Unfortunately, the housing shortages being witnessed in capital cities are even worse across nearly every regional town in Australia,” Croft acknowledged.
Were the Coalition to win the next election, Croft said that the targeted funding for regional infrastructure would address one of the three major blockers of housing supply outside of the major cities.
“Three key factors hampering the delivery of more housing in regional Australia is access to shovel (build) ready land, investment in necessary enabling infrastructure for new housing estates and staff shortages in regional councils to process planning approvals.”
“Practical measures such as those announced today to unlock housing supply and get projects shovel-ready sooner are critical to ensuring the residential building industry can meet increased demand and support greater housing delivery across the country,” Croft said.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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