Funding Greenfields infrastructure

We often get questions about where the funding of Greenfields infrastructure comes from.

There are a variety of sources:

Development levies paid by the developer

When people develop land for any use, they often contribute to or cause the need for new or upgraded infrastructure. Development contributions are payments or works-in-kind towards the provision of infrastructure made by the developer on the basis of a set criteria. Generally they pay for council infrastructure such as a community facility, local road or the upgrade of a park. The system is currently being simplified.

Growth Areas Infrastructure Contribution (GAIC)

What is known as state infrastructure – generally infrastructure that services a range of communities and may include buying land for a school or a future rail line – is in part paid for by the Growth Areas Infrastructure Contribution (GAIC)

The Growth Area Infrastructure Contribution (GAIC) began operation on 1 July 2010 and applies to growth area land brought into the Urban Growth Boundary in 2005-06 or subsequently which is zoned for urban development. It is also paid by developers based on a set of criteria.

To see an example of some recent funding of a project under GAIC see here.

Growing Suburbs Fund

The Growing Suburbs Fund is a $150 million state government investment over four years to support critical Council infrastructure for communities in Melbourne’s diverse and fast-growing outer suburbs.

It is a dedicated fund to support the infrastructure needs of interface communities which are experiencing pressure on strained facilities and services.

It will fund local infrastructure such as family and community centres, town centre and civic revitalisation projects, open space and amenity improvements.

Local, state and federal budgets

In addition to this many infrastructure items are funded through a Council capital works budget, the Victorian Government budget and on occasion the Federal Government Budget.

These sources combine together to help fund much of the new infrastructure needs created over time by the establishment of new communities.