The state government has recently announced a ceiling on Gold Coast infrastructure charges of $28,000 per residential lot (for a house with three or more bedrooms), or $20,000 per unit (for a unit with one or two bedrooms). The intention is to provide “certainty” and “consistency” across the state.
On those scores, the scheme fits the bill. Once can always criticise, but the truth is that infrastructure charges should really be zero. This is because the state government has decided to transfer the cost of infrastructure (roads, stormwater drainage, regional parks etc) to the developer who already pays for all internal services in a subdivision. Not only does he pay for them, he hands them back to the local Council, free of charge. Council then proceeds to raise income from the assets in perpetuity. Not a bad deal.
On top of that, developers now contribute to external roads, stormwater drainage and parks. They immediately pass those costs onto the retail purchaser. Hence, house prices go up.
The alternative could be that all infrastructure is funded by general revenue, for example petrol tax in the case of roads. This would keep housing costs down and make Queensland a more competitive place to live.
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