Funding bonanza for rail, road links to new housing developments in Western Sydney

ONE billion dollars will be ploughed into building roads and rail lines into new housing developments, with a focus on Western Sydney, in a move to address housing affordability.

Prime Minister Malcolm Turnbull with workers during a visit to Glencore copper refinery in Townsville. Picture: AAP/Andrew Rankin

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ONE billion dollars will be ploughed into building roads and rail lines into new housing developments, with a focus on Western Sydney, in a Turnbull government move to address our housing affordability crisis.

The concessional loan facility, to be unveiled in Tuesday’s Budget, will give state and local governments funds at rock-bottom rates to build infrastructure supporting new homes.

Prime Minister Malcolm Turnbull and his treasurer have been critical of Labor’s approach of operating as an ATM for the state governments — including the recent $400 million commitment rail for Badgerys Creek airport.

Reluctant to throw more money out without any accountability, Mr Turnbull has chosen the concessional loan facility. Urban Infrastructure Minister Paul Fletcher said the transport infrastructure will help address housing affordability.

“There is a clear link between housing affordability and planning new transport infrastructure,” he said.

“Many things must happen before new housing comes onto the market, including zoning, planning approval, the supply of utilities like water and electricity, and the home being built.

“Another vital requirement is transport connectivity — the way that housing is connected to the rest of the city, particularly where jobs are located.”

The government will invest in infrastructure instead of supplying grant-funding, and has set up an infrastructure financing team inside the Prime Minister and Cabinet.

Under their new model, the Turnbull government will work in partnership with state and local governments to allow access to finance for infrastructure projects that support new housing areas.

The Turnbull government intends to work with the states to fund inland urban rail and major road projects in Western Sydney and inland rail in Queensland.

Mr Fletcher refused to comment on budget speculation or the $1 billion concessional loan facility but, writing in The Daily Telegraph today, he said it was crucial to plan for new infrastructure to connect new areas of housing with the rest of the city.

“As we plan for a continuing supply of housing, we also need to plan for that housing to be well connected to jobs. That is a priority for the Turnbull government in the work we are doing with state and territory governments around Australia, including the Berejiklian government in NSW,” Mr Fletcher said.

Cities Minister and Assistant Minister to the Prime Minister, Angus Taylor, also declined to comment on Budget measures, but said infrastructure investment was critical to improving supply of housing.

Under the Turnbull government’s proposal, it would partner with the states to build infrastructure.

Mr Fletcher said better transport infrastructure planning could help address the issue of housing affordability in several ways.

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“First, we need to plan the transport arteries required to support the release of new land for housing, either on the outskirts of the city or in brownfields areas,” he said.

“Secondly, we need to get people into and out of key employment clusters such as the CBD, Parramatta and Macquarie Park — and the cluster expected to grow around the new Western Sydney Airport.

“The density of these areas makes public transport an efficient approach to moving large volumes of people quickly; as our cities grow and the importance of employment clusters grows, providing better public transport links to these clusters is more important than ever.

“Third, there is a clear connection between heavy and light rail on the one hand, and more apartment and townhouse living around the stations of these rail links on the other.”