The Victorian Planning Authority (VPA) 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. Infrastructure 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. For more information, refer to Infrastructure contributions.
Growth Areas Infrastructure Contribution
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 GAIC began operation on 1 July 2010 and applies to growth area land brought into the Urban Growth Boundary (UGB) in 2005-06 or subsequently which is zoned for urban development. It is also paid by developers based on a set of criteria.
For more information on how GAIC funds are being used to provide state infrastructure, refer to Growth Areas Infrastructure Contribution Fund (GAIC).
For more general information on GAIC, refer to Growth Areas Infrastructure Contribution, or from the State Revenue Office (SRO) and the Department of Transport and Planning (DTP).
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.