Infrastructure lag and three tiers of government the main culprits in Australia's population pinch: report

Record population growth is not a problem for Australia – the lack of planning for it is, according to a new report, which has called for all levels of governments to set aside their differences and work together to ensure the major cities remain liveable.

The country is set to grow by 10 million in the next three decades, with 80 per cent of the increase expected to occur in the five largest cities: Sydney, Melbourne, Brisbane, Perth and Adelaide.  According to the report by Infrastructure Australia, these capitals are already behind the eight ball when it comes to delivering essential infrastructure and services.

The Planning In Liveable Cities report, released on Tuesday, found that the governments responsible for these cities were playing catch-up by rolling out housing developments first, then the infrastructure.

Infrastructure Australia’s executive director of policy and research, Peter Colacino, said Australia was growing at a rate unseen in 50 years, and it was critical to not only maintain that growth but the liveability of these cities too.

“The key issue is that infrastructure lag … that population is moving into areas that infrastructure doesn’t arrive until years after,” he said.

The report also found that communities were understandably apprehensive about change and opposed further development because “they witness development that is poorly designed and not accompanied by commensurate increases in infrastructure”.

“While these concerns should not be dismissed out of hand as ‘NIMBYism’ [Not In My Back Yard], the solution is not to limit growth or the provision of infrastructure in our cities. It is possible to grow our cities and retain their liveability and unique character. To achieve this, we need to modernise the way we plan and sequence housing and infrastructure in our cities,” the report suggests.

Mr Colacino said communities were increasingly disappointed with their experience of growth in Australia.

“The capacity of infrastructure, density built over a railway line [for example], people see an erosion of the level of service when the understanding of the local infrastructure is out of line with the growth in the area,” he said.

Australia’s three-tiered governance structure was also identified as a major challenge in delivering infrastructure and services in line with the population growth.

“The challenge is less about the rate of growth and more that it’s well planned for,” said Mr Colacino.

“The three tiers of government complicate the growth scenario. We absolutely see the alignment of the levels of government is a challenge.

“Governments also understand [that] the expectation around growth is complex and changing and [that] it will require alignment and commitment from each level of government.”

The report identified that funding mechanisms had not kept pace with growth, preventing the timely delivery of local and state infrastructure and creating uncertainty for governments and industry.

Infrastructure Australia has previously highlighted the need to consider alternative and more innovative approaches that use land more productively and capture the increased land value by broadening the land tax base and removing inefficient charges such as stamp duties.

The report recommended a new national process for managing population growth and creating incentives for greater collaboration between the three tiers of government.

It also recommended a greater focus on place-based, rather than sector-based, outcomes.

The report acknowledged that while the federal government’s City Deals are in their early stage, they were a good start: “[they are] a promising model for achieving place-based outcomes. Bringing federal, state and local governments together to drive better outcomes from investment, City Deals align policy and investment priorities across different levels of government in particular areas”.

Mr Colacino said “growth can deliver great things to Australia. But if we’re going to cater for growth, we need to make sure there is a focused view on where [that growth will be]”.