A CAP on infrastructure charges meant to make homes cheaper will actually stifle development and push up rates, the Local Government Association of Queensland said.
Premier Anna Bligh announced the cap yesterday but the LGAQ is already warning it could backfire.
And developers say the reforms don’t go far enough and Queensland is still hindered by the most “convoluted and comprehensive planning debacle of any Australian state”.
Ms Bligh used a building industry forum in Brisbane to announce the cap, recommended by the Infrastructure Charges Taskforce.
The taskforce was set up to examine the current regime, under which local councils charge developers to offset water, road and other infrastructure costs when new dwellings are built.
Under the reforms announced by the Premier, standard maximum residential charges will be set at $28,000 for a home with three or more bedrooms, and $20,000 for one and two-bedroom dwellings.
Ms Bligh said the reforms struck a balance between developers contributing to infrastructure costs and ensuring new homes were affordable.
But the LGAQ said the government had handed developers a concession and rates would likely rise when councils had to borrow more money to cover infrastructure costs.
“The capping of the infrastructure charges in a perverse way will stifle development, not help it,” LGAQ acting chief executive Greg Hoffman said yesterday.
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