The local infrastructure fund aims to address housing bottlenecks by supporting vital infrastructure for new developments across Australia.
One of the biggest barriers to new housing isn’t always construction – it’s infrastructure.
In many areas, housing projects are delayed because roads, water, sewerage and power connections aren’t ready.
To address that problem, the federal government announced a new $2 billion Local Infrastructure Fund in the Budget.
The funding will help councils and utilities deliver the ‘last mile’ infrastructure needed to support new housing developments.
The government says the fund could support up to 65,000 homes over the next decade.
The funding will only be available to states and territories that commit to reforms such as:
Speeding up planning approvals.
Making more land available.
Simplifying building rules.
The government believes those changes could support more across Australia.
Housing supply has become a major affordability issue.
If more land and infrastructure become available, it could gradually improve housing choice and reduce some pressure on prices and rents.
Of course, these changes won’t happen overnight.
Over time, changes like these could influence where housing growth occurs and which areas see the biggest increase in supply.
