Media Release - Productivity Commission backs peri urban councils: infrastructure is the missing link to housing supply
The Productivity Commission's Housing Supply Regulation Interim Report, released this week, has backed the central case put by Peri Urban Councils Victoria (PUCV) that housing targets must include essential infrastructure that is funded and sequenced before homes can be built.
The finding has direct implications for Bass Coast, Baw Baw, Golden Plains, Moorabool and Surf Coast, where councils have been assigned a combined target of 85,450 additional homes by 2051.
PUCV's June 2026 submission to the Commission’s inquiry argued that housing reform must focus on development-ready land, supported by roads, drainage, water, sewer, electricity, transport, approvals and funding arrangements.
Acting Chair of Peri Urban Councils Victoria and Golden Plains Shire Mayor Owen Sharkey said the national report backed the core position advanced by PUCV and its member councils.
"The Productivity Commission has backed our central case: a line on a planning map is not a home," Cr Sharkey said.
"Infrastructure is what turns land into housing. Until roads, sewer, drainage, power and transport are funded and sequenced, housing targets remain numbers on a page,” he said.
The Commission has highlighted that infrastructure planning is often the main constraint on housing delivery in greenfield areas and recommends that housing, rezoning and infrastructure upgrades be sequenced together.
It also identifies a potential Commonwealth role in providing low-or no-interest loans, managing funding shortfalls and underwriting infrastructure sequencing risks.
PUCV has identified around 332 growth-area infrastructure projects worth more than $1.25 billion that would support about 72,000 homes across its five member councils.
"Peri urban councils have targets for 85,450 homes, but the infrastructure bill arrives first," Cr Sharkey said.
"Developer contributions and new rates arrive later. Without upfront finance, the land may be zoned, but it is not ready to deliver homes."
PUCV says the findings strengthen the case for its proposed $90 million Development Contributions Plan Loan Fund and $230 million Peri Urban Capital Infrastructure Fund.
PUCV is calling for the Commission's final report to:
recommend Commonwealth and State forward-finance and capital funding for housing- enabling infrastructure;
recognise development-ready land, local government financial capacity and the distinct peri urban growth model; and
support practical funding mechanisms that turn planned growth into real homes and liveable communities.
BACKGROUND
Peri urban councils offer a better balance to Victoria’s currently overpopulated capital city Melbourne;
The liveability of these areas across has attracted a growing population which is challenging our members’ ability to meet demand; and
The peri urban region already undertakes an important role in the state’s economy, providing employment, essential services, recreational activities and are conveniently located within an easy commutable distance to Melbourne.
About Peri Urban Councils Victoria (PUCV)
PUCV is an alliance of five municipalities located immediately adjacent to metropolitan Melbourne and Geelong. They are: Surf Coast, Golden Plains, Moorabool, Baw Baw and Bass Coast.
These municipalities cover more than 11,000 square kilometres and have a population of nearly 200,000 people.
Housing and Growth
PUCV communities are projected to reach more than 322,000 residents by 2046 - growth of approximately 47 per cent.
The Victorian Government has assigned a combined target of 85,450 additional homes across the five councils by 2051.
PUCV has identified around 332 growth-area infrastructure projects requiring more than $1.25 billion to support about 72,000 homes.
PUCV's June 2026 submission called for development-ready land, DCP reform, stronger utility coordination and dedicated infrastructure financing.
Productivity Commission interim report
The interim report supports PUCV's central position that infrastructure planning and sequencing are critical to housing supply and identifies a potential Commonwealth role in infrastructure finance.
It has not yet adopted PUCV's specific funding proposals or its call for formal peri urban recognition; these remain priorities for the final consultation phase.
To view the Peri Urban Councils Victoria submission click here