Axing Adelaide urban growth boundary would deliver $1bn economic boost – industry research

Opening up agricultural land for Adelaide homes would deliver a huge boost for the state economy and create thousands of jobs, research shows.

Axing a controversial urban growth boundary to open up land for tens of thousands of new homes would inject about $1bn annually into the South Australian economy and create more than 6000 jobs, industry modelling shows.

Intensifying pressure on the Liberals to back land rezoning, research commissioned by Master Builders SA (MBA) outlines the benefits of overturning greenfield housing development bans on land at Roseworthy, Two Wells, Murray Bridge, Victor Harbor and Goolwa.

Premier Peter Malinauskas is challenging the Liberals to back legislation to rezone 5630ha in Environment and Food Production Areas, but Opposition Leader Vincent Tarzia is “reserving “the right to make sensible amendments”.

Premier Peter Malinauskas, left, and Opposition Leader Vincent Tarzia shake hands before an SA Press Club debate last Friday. Picture: Brenton Edwards

Despite peak farming groups accusing the government of sacrificing crops for concrete, the research shows the rezoned land comprises just 0.14 per cent of the four million hectares being cropped in SA.

Building 61,000 homes on the rezoned land would contribute $988.2m annually to gross state product over 40 years and create 6364 full-time jobs per year, the research finds.

By contrast, the reduction in agricultural production on the rezoned land would equate to an average $3.6m and 19 full-time jobs – representing 0.01 per cent of current grain production and rising to only 0.23 per cent after 40 years.

MBA SA chief executive Will Frogley said no farmer would be compelled to sell and the housing redevelopment would happen over decades.

“Adelaide has been living with the punishing economic legacy of the urban growth boundary for more than a decade,” he said.

“This artificial line around greater Adelaide has done nothing to grow or expand agriculture and everything to punish hardworking South Australians who just want a home to live in.”

Opposition Leader Vincent Tarzia speaks at the SA Press Club leaders' debate. Picture: Brenton Edwards

The research, conducted by strategic management consultants Hudson Howells, forecasts governments would collect $8.64bn in taxes over 40 years, or $216m annually, from the 61,000 homes. This would range from $1.8bn in stamp duty to $79.3m in council rates.

Failure to amend the 85 per cent infill target, however, would have “continuing serious consequences for housing affordability and the state’s economy”, including continued declining home ownership rates and an inability to house the skilled workforce needed for major projects like the AUKUS nuclear-powered submarine build.

The Liberals have pinpointed easing the housing crisis as a major strategic priority and are expected to decide their position on the legislation at a joint party room meeting on Monday, ahead of state parliament resuming sitting on Tuesday.

Mr Tarzia on Friday told The Advertiser the Opposition was not opposed to changing the urban boundaries but “we certainly reserve the right to make sensible amendments to the government legislation regarding Environment and Food Production Areas”.

The Advertiser on March 17 revealed Mr Malinauskas was moving to banish the “uncontrolled” carve-up of suburban streets for subdivision by jettisoning the urban growth boundary, overturning the infill policy introduced by the Weatherill Labor government in 2016.

Originally published as Axing Adelaide urban growth boundary would deliver $1bn economic boost – industry research