LGAQ urges Qld govt to pump extra $500m a year to reach new homes target

Queensland councils are demanding the state government pump an extra $500m into the sector each year to help them achieve the ambitious target of one million new homes by 2046.

Local Government Association of Queensland chief executive Alison Smith. Picture: Glenn Campbell

Queensland councils are demanding the state government pump an extra $500m into the sector each year to help them achieve the ambitious target of one million new homes by 2046.

The call came in response to a Greens proposal to give councils the power to increase the charges levied on developers to fund pedestrian crossings, parks, flood mitigation, public and active transport projects.

The Local Government Association of Queensland, representing 77 councils, says its members are frustrated the maximum charge that can be applied to developers for trunk infrastructure – water, roads and sewerage – “has not kept pace with increasing construction costs”.

It is demanding $500m each year in extra funding from the state government to help councils invest in the infrastructure and “critical renewal and augmentation” of water, sewerage, drainage and road assets.

LGAQ chief executive Alison Smith, who did not support the Greens’ Bill, said the cap on developer contributions had led to funding shortfalls throughout Queensland and resulted in “cost shifting onto councils and the community”.

“There is broad agreement that the current maximum allowable charge needs to be increased and more appropriately indexed,” she said.

“While the Bill starts a necessary conversation regarding these concerns, the LGAQ believes a more fulsome, nuanced approach is needed – with a range of short-and long-term solutions.”

Housing and Planning Minister Meaghan Scanlon left the door open to a future change to developer charges and more cash for councils.

“We want to work with councils to build more homes faster, that’s why we’ve opened up a number of funds for councils to access and unlock more housing,” she said.

“Just recently, we announced another $350m to create a statewide infrastructure fund to encourage more infill development.

“We will continue to work with councils, LGAQ and industry on infrastructure charging and spending information.”

Housing and Planning Minister Meaghan Scanlon. Picture: Dan Peled/NCA NewsWire

Greens MP Michael Berkman told parliament councils needed “flexibility” to charge developers for the real cost of building infrastructure as land values and construction costs increase.

“Infrastructure charges are one of the few ways councils can make developers contribute towards the things that growing communities need,” he said.

“They fund pedestrian crossings, parks, flood mitigation, public transport, community facilities and services.

“It makes sense that if a developer is able to come in and make a profit building in the area they should give some of those profits back to the community.”

Industry groups are opposing the Bill, which is due to be reported on by a parliamentary committee by May 15, claiming it would hurt efforts to increase housing supply.

“The cumulative effect of the Bill would be a reduction in the number of new homes built in Queensland and increase the price of new housing, locking more Queenslanders out of the housing market,” the Urban Development Institute of Australia said.

The Property Council of Australia warned it would “actively undermine” the efforts of governments to deliver housing and exacerbate significant cost pressures.