Infrastructure funding will make housing more affordable
The program funds infrastructure by refunding 50 percent of the interest paid on TCorp loans to local councils. Already, $165 million worth of infrastructure has been unlocked with $10 million dedicated under the program.
Urban Development Institute of Australia (UDIA) NSW chief executive, Steve Mann, said the policy would help improve housing supply and affordability.
“This is a good step for housing affordability. Making more funding available for infrastructure, means less pressure on councils to bill individual homebuyers via infrastructure levies.
The infrastructure subsidised so far has unlocked 25,000 new homes which means a stronger economy and less upward pressure on house prices as the population grows.
“UDIA NSW’s Building Blocks 2.0 report shows in many cases, resolving a single infrastructure bottleneck can unlock thousands of new homes.
“Just $20 million spent under this program can unlock over $300 million worth of infrastructure, which is a very efficient way to get infrastructure delivery moving.
“The cost of infrastructure can be reduced if councils make use of low-interest TCorp loans to buy land before it becomes too expensive. This in turn both enables more infrastructure to be built and reduces the burden homebuyers pay in infrastructure levies.