Statement on Infrastructure Contribution Reform

21 October 2024

Peri Urban Councils Victoria (PUCV) has today welcomed an announcement from the Victorian Government that a review of infrastructure contributions will be undertaken and released by March 2025.

PUCV spokesperson and CEO of Baw Baw Shire, Mark Dupe said “As towns and cities change rapidly and Councils aim to appropriately plan for housing, township character, open spaces, transport and more, planning processes are simply not keeping pace. The current system is not fit for purpose and is making the task of addressing the housing crisis a challenge.”

“Peri Urban Councils Victoria are willing to play our part in addressing Victoria's housing crisis and our members are supportive of the housing targets set by the State Government,” Mr Dupe said.

“Current infrastructure contribution schemes however are creating large funding gaps, which is a risk to peri urban council’s ongoing financial sustainability and the future liveability of our communities” Mr Dupe said.

The review is expected to include programs such as Developer Contributions Plans and Section 173 Agreements that are in place in the growth areas of PUCV member councils.

“Peri urban councils have smaller rate bases, limited borrowing capacity and more responsibility for essential infrastructure, challenges that metropolitan councils do not have,” Mr Dupe said.

“Yet, Peri Urban Council Victoria members are expected to need an additional 70,000 houses in the next 15 years which will become homes for about 180,000 new residents. This means growing our current communities by as much as 50 per cent,” Mr Dupe said.

“We have a forecasted an immediate need of $230 million for essential infrastructure like drainage, utilities and roads alone to enable 40,000 new homes to be built,” Mr Dupe said.

"We congratulate the Government for taking the step to review the existing infrastructure contribution schemes and look forward to engaging with Minister for Planning, the Hon Sonya Kilkenny to gain a seat at the decision making table, to make sure any new scheme will meet the needs of peri urban communities,” Mr Dupe concluded.