phillip davies - infrastructure australia
TRANSCRIPT
Establishing a realistic role for Value Capture in the infrastructure funding mix Value Capture in Infrastructure 2017 Philip Davies Chief Executive Officer Infrastructure Australia
15-year Australian Infrastructure Plan 78 recommendations to address today’s
infrastructure gaps and meet the global challenges of tomorrow Reforming infrastructure markets to meet the needs of growing cities and regions Supporting national productivity and growth
Australia’s national infrastructure priorities 100 major infrastructure proposals Australia needs to boost our economy Consensus list of the projects that will deliver the best long-term outcomes for infrastructure users Investments are multi-decade in nature
Funding the infrastructure we need Need to diversify the sources of funding available for infrastructure investment in Australia Long-term planning and community engagement key to successful value capture Benefits in broadening the land tax system to capture land value uplift
Two ways to pay for public infrastructure Funding for public infrastructure is available from two sources: beneficiaries and taxpayers Value capture can make the infrastructure funding mix more equitable Need to be realistic about the potential role of value capture in funding projects
Long-term, integrated land use planning Better planning is a central theme in the Australian Infrastructure Plan Helps governments to identify and support potential value uplift Reduces cost of strategic future investments
Each mechanism has risks and rewards Mechanisms based on proximity run the risk of being inaccurate Mechanisms based on transactions can be economically inefficient Mechanisms based on property prices are subject to volatile market forces
Engaging with communities and businesses Embrace the opportunity to communicate benefits of infrastructure investments Need to explain why value capture is necessary to ensure the project best meets their needs Transparent and robust governance structure is essential
Broadening the land tax system In the long-term, a broad-based land tax represents a fairer way of capturing land value uplift Must be accompanied by the removal of inefficient charges such as stamp duties Efficient stream of funding that fairly reflects land values
Taxpayers and infrastructure users Government decisions should be guided by what is in the best long-term interests of Australian taxpayers and infrastructure users How can we use value capture to make our infrastructure funding mix fairer and more sustainable?