Queensland councils are appealing to the state government for the ability to raise charges on property developers to finance crucial local infrastructure projects such as drainage and roads. Currently, the capped infrastructure charges set by the state government could result in a significant funding gap for essential infrastructure, as highlighted by the Local Government Association of Queensland (LGAQ). The potential shortfall in funding might lead to hundreds of additional dollars being added annually to rates bills for residents.
LGAQ President Mark Jamieson has pointed out the forecasted trunk infrastructure funding gaps within South East Queensland and regional areas over the next four years, estimating billions of dollars in potential shortfalls. Emphasizing the importance of councils providing critical infrastructure to support community growth, he is advocating for a lift in the cap on infrastructure charges to enable councils to secure adequate funding for these projects. The research conducted by the LGAQ, in collaboration with Strategic Asset Management, revealed concerning gaps in essential infrastructure funding, stressing the need for adjustments to the current system.
While the LGAQ is pushing for a higher cap on infrastructure charges, the Property Council of Australia Queensland has expressed opposition to the proposal, raising concerns about the potential increase in home prices for Queenslanders. Despite the opposition, LGAQ's chief executive Alison Smith has clarified that the aim is not to inflate housing costs but to allocate necessary funding fairly and sustainably. Minister Meaghan Scanlon has not committed to lifting the infrastructure charge cap, citing the government's ongoing investments in infrastructure projects and the need for councils to have well-established infrastructure plans.