The Victorian government has announced a new plan to speed up infrastructure works in the new suburbs of Melbourne.
Under the scheme, development companies in growth areas have the option to provide capital works projects rather than paying a cash contribution towards infrastructure.
Founder of Hotspotting.com.au Terry Ryder recently named infrastructure spending as “the greatest creator of wealth in real estate”.
Planning minister Matthew Guy said accelerating infrastructure would help provide amenities and transport to people in new build areas.
“As people move in to new suburbs, we want them to have immediate and easy access to connected roads and transport, employment opportunities and nearby community facilities,” Mr Guy said.
Proposed projects include the provision of an interchange on the Hume freeway, a road overpass in the western growth corridor and a new railway station in the north.
Mr Guy said the scheme, known as the Growth Areas Infrastructure Contribution Works-in-Kind (GAIC W-I-K), would be a more efficient and less expensive way of providing facilities to new estates.
“Through GAIC W-I-K, we can deliver infrastructure alongside new housing, removing the costly need to acquire land later and ensuring better integration of public and private facilities,” he said.
Under planning legislation, development companies are required to pay a cash contribution towards the funding of state infrastructure in new areas.
The GAIC W-I-K would allow companies to offset part or all of this payment by providing land or infrastructure works for projects such as roads, foot or cycling paths, health, community and education facilities, stormwater management or IT frameworks.