A report by the independent Infrastructure Charges Taskforce to the Queensland government has made ten recommendations to simplify and standardise the way local government infrastructure charges are calculated.

 

The report recommends a range of short and long term measures to make the infrastructure charging system simpler and more transparent with the aim of reducing development costs in Queensland.

 

The taskforce’s recommendations cover all types of development from houses to shops to industrial sites.

 

Local governments will have flexibility in choosing whether to subsidise infrastructure charging to stimulate construction or even charge lower than the maximum amounts.

 

Commenting on the report, the Deputy Premier and Minister for Local Government and Planning Paul Lucas called on both councils and developers to carefully consider the recommendations in a constructive light.

 

“With this report, the State Government is seeking to resolve seemingly irreconcilable differences between councils and developers,” he said.

 

“Most state governments levy significant infrastructure charges, but here in Queensland there is only the relatively modest DTMR Local Function Charge in some local government areas. Overwhelmingly charges are levied by Councils.”

 

“Despite this being largely a matter between developers and local councils, the State Government is committed to sorting out this issue so we can continue to see development in Queensland which brings jobs and housing affordability.”

 

The report’s recommendations include:

  • Setting a maximum charge of between $20,000 and $30,000 per house for trunk infrastructure (water, sewerage, stormwater, roads and parks) in residential developments, rather than an inconsistent range of charges varying across local governments;
  • Setting maximum charges per square meter for trunk infrastructure for retail, commercial and industrial buildings, entertainment and other non-residential developments;
  • Setting standard maximum charges for three years, increasing in line with a set index;
  • Placing a moratorium on the collection of fees for use of state roads; and
  • Introducing deferred payments so developers can pay for trunk infrastructure later providing better cash flows.