The Property Council of Australia expressed concern over the local infrastructure budget after it was announced that homebuyers’ taxes will fund the sector starting in 2020, rather than being supplemented by the Local Infrastructure Growth Scheme.
In his disclosure, Minister Roberts stated that $90 million from the Local Infrastructure Growth Scheme will be allocated to provide Blacktown and The Hills with green spaces, local roads and bridges. However, this will only run through 2020, at which point “[t]he gap in infrastructure funding this program leaves will be met by the homebuyer through higher local infrastructure levies, adding up to $80k to the price of a home,” Property Council NSW Executive Director Cheryl Thomas revealed.
The problem with this is that taxes are usually higher in the city’s west, where most of the progress is happening. These new taxes will naturally increase the costs associated with buying a home, and, in the long run, will cause an equity gap between Sydney’s developed communities and those that are on the up and up.
“The Local Infrastructure Growth Scheme should have been reinstated in Tuesday’s budget, the Scheme is a true cost of living measure that can alleviate the pressure on communities across the state and provide key local infrastructure for growing communities,” Thomas concluded.
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