Victoria Taps Developers for Regional Infrastructure Funds

Developers focused on regional Victoria are facing a new contributions plan as the state reveals more social housing schemes.

The Vicotrian government said it is creating a simpler and more fair system of development contributions for developers for new homes. 

The contributions will help fund infrastructure, parks and services, and councils that build more will get more money for roads, public transport, schools, health services, sporting venues and parks.

Many regional areas are struggling to fund necessary infrastructure while developers also are unable to cover the full cost of developing the infrastructure as well as the project. 

Just 14 of Victoria’s regional councils, less than a third, have a contribution scheme in place when additional homes are built on a site. 

The Housing Affordability Partnership, comprised of lobby groups and developer Assemble, will review contribution options for regional councils as part of its remit.

They are due to meet from this month and will deliver a report to the state in March of next year. 

Meanwhile, more social housing is also on the cards with 1300 affordable and social homes announced for the regions, funded through the $1-billion Regional Housing Fund. 

▲ Regional Victorian councils are struggling to meet trunk infrastructure costs.

The first 1000 homes include: 68 in Mallee, 98 at Wimmera South-West, 162 at Loddon, 34 at Central Highlands, 140 at Goulburn, 238 at Barwon, 110 at Ovens Murray, 65 at Outer Gippsland and 110 at Inner Gippsland.

At least 180 of these new homes have been completed with 50 of them designated transitional housing homes. 

There will also be 70 homes to support flood-affected areas at Shepparton, Seymour and Rocherster being built, with 50 at Colac, 50 at Wodonga and 20 due for completion by the end of 2025.

As programs are finalised more projects and locations will be announced. 

To help with this plan, the state is also investing in regional planners with $500,000 put towards a Regional Planner Cadetship Program.

It aims to help new planners enter the rural and regional local government workforce to address a shortage of planners creating delays for many councils. 

There will also be a Regional Planning Hubs program that provides councils with access to planning experts.

▲ A shortage of planners is causing huge problems for the industry in Victoria.

More change to the Victorian Planning Authority will also help councils get planning support for projects already in the planning process. 

That will include more than 24,000 homes with 2500 homes at Shepparton South East, 5000 homes at Bannockburn South East, 4000 homes near Aberline, 6000 homes at Ballarat North, and 6800 homes at Moorabool.