Capping infrastructure charges, some questions answered

Q: What is trunk infrastructure?

A: Trunk infrastructure is the basic framework or underlying capital works that allow a block of land to be developed into a residential estate i.e. roads, stormwater drainage pipes, water supply (including pumping, treatment and distribution) sewerage collection and treatment, and kerbing and channelling.

A: Councils are responsible for providing essential urban infrastructure. Without council providing this infrastructure, developers can not proceed with any projects.

Q: Who pays for this basic infrastructure?

A: Pre May 2010, the State Government provided a 40% subsidy to councils to help pay for these essential capital works. In May 2010, the Qld Government withdrew these subsidies. Since that time, the ratepayers (through their local councils) have had to shoulder close to 100% of the cost of providing this infrastructure.

Q: What does 'capping infrastructure charges' mean?

A: The State Government has legislated to put a cap, or ceiling, on what developers can be charged for trunk infrastructure in any residential development. They have determined the cap will be $28,000 per residential block.

Q: What impact will the capping have on my rates & charges?

A: Council's developer charges for infrastructure will be limited to $28,000/residential block. However, the cost to council of providing this infrastructure in many cases exceeds this limit. It will therefore be up to the ratepayer or taxpayers through their rates and other Federal and State Government contributions to meet the shortfall.

Q: Why has the State Government brought in capping of infrastructure charges?

A: The State Government is trying to encourage an increase in the number of housing lots available to the market.