Efficient provision and use of infrastructure, including transport infrastructure, is critical to meet the needs of a growing Australian population and economy.
Governments will increasingly face challenges in funding infrastructure, because fiscal capacity will be increasingly restricted and there has been limited adoption of user pays models.
There are various ways to fund required infrastructure, primarily government funding, user charges, developer contributions and value capture (which is the focus of this inquiry).
The Business Council supports diversification of funding sources for public infrastructure. We encourage the wider use of value capture initiatives, along with greater use of other funding sources like user pays, as long as governments undertake careful consideration of the appropriateness of value capture for the specific project in question.