Short-term solution for long-term housing problem

Thu, 28 Apr, 2022

“The Government’s infrastructure announcement this morning is a temporary fix that doesn’t address the enduring problem that is preventing houses from being built,” says ACT’s Housing spokesperson Brooke van Velden.

“Builders and councils say the real shortage is infrastructure, and councils can’t afford it.

“Today’s announcement is proof of this. These suburbs all had housing developments that had been underway for years, but the Government didn’t account for the necessary infrastructure these homes needed and are making up for it now. What happens when the funding that was dished out today runs out? 

“We need an enduring and practical solution for meeting these infrastructure needs, rather than relying on the Government to come to the party with a one off funding injection years down the track.

“ACT has proposed a GST-sharing scheme which will have councils issuing building consents with the same enthusiasm they have for giving parking tickets.

“Instead of forcing councils to come begging for funds from the Government, ACT has proposed local councils receive a payment equivalent to 50 per cent of the GST for every new dwelling constructed in its territory.

“ACT’s GST-sharing scheme is estimated to deliver $1 billion every year to support local development enabling infrastructure, but councils that consent more, get more.

“By providing financial incentives for councils to support new housing we’ll see more development.

“ACT believes in better, longer-lasting solutions. As a country we deserve better when it comes to housing to ensure we can live our best and most fulfilling lives.”