By: Staff Reporter
At a summit in Sydney this week, the Housing Industry Association (HIA) called on the federal government to consider alternatives to the ‘user pays’ infrastructure charging model in a bid to improve the nation’s supply of affordable housing.
“Ensuring an adequate supply of quality affordable homes is perhaps the foremost challenge facing Australia today,” HIA managing director Shane Goodwin said.
According to the HIA the current upfront ‘user pays’ system is unaffordable.
“There are alternative funding models that can be implemented quickly and can have an immediate impact on housing supply and housing affordability,” Mr Goodwin said.
Mr Goodwin said federal government intervention was needed to support borrowing programs for state and local governments facing infrastructure challenges.
“This might be incentives for local governments to borrow or the establishment of an Infrastructure Bank to attract superannuation funds to invest in local and state infrastructure.
“We should be exploring a range of ideas and proven solutions, for example a Tax Increment Funding (TIF) and community bonds (MUNI bonds) which work effectively in other comparable economies.”