Hundreds of millions of dollars meant to be spent on vital infrastructure in Melbourne’s booming growth corridors could be diverted to projects in other parts of the city.
The Allan government wants the power to spend funds collected from developers in growth suburbs such as Sunbury, Craigieburn and Melton on projects in other parts of Melbourne.
The government wants to be able to spend developer contributions outside the growth areas in which they were collected.Credit: Paul Rovere
While the government says funds would only go to services and infrastructure that “addresses the needs” of the collection area, critics fear the new laws could be used to finance projects with only a tenuous link to residents.
Wide-ranging planning changes – which are yet to pass the upper house – would also require some landowners to notify Aboriginal groups of planning permits in yet-to-be-defined areas of cultural sensitivity, even as they curtail objection rights for neighbours.
Under the changes, growth area infrastructure contributions (GAIC) – a one-off contribution paid by developers to help fund roads, schools and transport in new and growing outer suburbs – could be spent outside the area, if the money is for infrastructure “that services the growth area but cannot reasonably be located in it”.
Similar changes will apply to infrastructure contributions plans, which are currently collected in seven growth suburbs to help deliver local infrastructure and are expected to apply in activity centres – designated higher-density areas near public transport in inner and middle-ring suburbs.
There has already been widespread criticism of the allocation of GAIC funds, with the government accused of hoarding hundreds of millions of dollars to prop up the budget.
Opposition planning spokesman Richard Riordan said the changes to infrastructure funding would take more money away from communities that needed it.
“It will verge almost on theft if the Allan government allows itself to spend money owed to Melbourne’s growing west, north and south-east on other projects it claims have a ‘nexus’ with the lives of those in Melbourne’s outer growth suburbs,” he said.
“Is there a nexus for people in Tarneit using the West Gate Tunnel to access Melbourne’s CBD, while they wait 45 minutes every night to get off the freeway because promised exit lanes have not been built?
“GAIC cannot be used as another tax to pay for Labor’s vanity projects in the inner city and on the Suburban Rail Loop.”
A spokeswoman for Planning Minister Sonya Kilkenny denied growth area infrastructure contribution funding would be used for the Suburban Rail Loop, saying it would only ever be used when there was a measurable benefit to the growing communities.
“It’s disappointing to see the Liberals are once again spreading misinformation while we get on with delivering our plan to build more homes for more Victorians,” she said.
The government has so far spent $1.2 billion on projects in the nominated growth areas of Cardinia, Casey, Hume, Melton, Mitchell, Whittlesea and Wyndham, out of the $1.5 billion in GAIC funds collected.
RMIT professor of urban planning Andrew Butt said that while flexibility on infrastructure spending could be beneficial, it demanded a clear and tangible commitment that the money would very directly benefit the community it was collected from.
“Presently, there’s been an underspend and undercommitment to lots of infrastructure, and Melbourne’s west is a good example,” he said
“The risk is the [GAIC funding] gets further diluted across the city, through the long and competing needs of so many locations.”
The bill would also make it an explicit objective of the planning system to promote the rights, interests and values of traditional owners and enable registered Aboriginal parties to be notified of, and then participate in, strategic planning.
It will require applicants to notify registered Aboriginal parties of certain planning permits. However, they would not have the ability to contest the permits at VCAT. At the same time, the bill removes third-party appeal and notification rights for neighbours for subdivisions and small apartment developments.
But the impact of traditional owner consultation on landowners remains unclear, as the government is yet to reveal which areas would be nominated as “prescribed areas” subject to notification of Aboriginal parties.
Riordan said it “defied logic” to say planning permits didn’t need neighbour consent, “but we add in the need to notify traditional owners”.
“Is our planning scheme about political point scoring or good outcomes?” he said.
The government spokeswoman said the overwhelming majority of planning permits would not be near prescribed areas requiring traditional owner notification, and regulation was now being drafted to clearly map the areas.
Greens planning spokeswoman Sarah Mansfield said traditional owners had been the custodians of the land for more than 60,000 years, and it made sense that they would be involved in matters that impact their communities and land.
The Greens say they are yet to form a position on the bill but are concerned there are no requirements for affordable and social housing.
Butt said the recently passed formal treaty – the first in Australia – with traditional owners was always going to have consequences on land use in the state.
But he was concerned about the capacity of registered Aboriginal parties to keep up with their obligations, and the extra onus being placed on them.
“We know the capacity of those groups to do things in new suburban growth areas has been limited, and we know that in the future it’s going to be more considerable,” Butt said.
“At present, there is uncertainty about how to bring treaty into practical reality for land use planning.”
The Property Council of Victoria has been broadly supportive of the planning changes, but has raised concerns about the proposed flexibility in the spending of developer contributions.
Chief executive Cath Evans said funds raised must benefit the collection area in a “clear, direct and demonstrable manner”.
“If the bill passes through parliament, we expect that the government will consult deeply with industry on the implementation of the reforms, to ensure a sustainable and positive outcome to manage Melbourne’s greenfield and infill growth,” she said.