The Housing Industry Association (HIA) has welcomed an announcement by the Coalition that it will consider issuing bonds to fund residential infrastructure projects.
HIA chief executive Graham Wolfe said the funding idea would be a positive alternative to the current ‘user pays' model.
"Infrastructure bonds issued under an appropriate framework offer a viable method of funding the much needed investment Australia requires," Mr Wolfe said.
"To adequately address Australia's future investment needs, the use of infrastructure bonds as a funding mechanism needs to incorporate the residential sector," he said.
The funding bond model is currently used in the US and was a topic of discussion at the HIA's recent Summit on urban infrastructure.