The heart of this reform is the shift from development contributions to a new development levy system . By enabling councils to recover the actual long-term costs of infrastructure provision , policymakers aim to create a more predictable and sustainable funding model .
This should provide greater cost certainty for residential developers and remove some of the financial guesswork that has historically deterred large-scale projects .
The changes could also provide indirect benefits for existing homeowners . By ensuring that infrastructure costs are more fairly distributed and linked to new developments , there is a reduced risk of local councils resorting to higher rates or borrowing to cover shortfalls .
However , much will depend on the fine print . If levies are set too high , they could deter development and slow down the muchneeded increase in housing supply .
Incentivising growth is a mindset shift for local government .
Perhaps one of the most ambitious aspects of the GfHG programme is its attempt to change how local councils approach housing growth .
Local authorities have reportedly hesitated to embrace development , often seeing it as a financial liability rather than an opportunity . The government hopes the program will change this by introducing financial incentives for councils that support urban expansion .
The prospect of additional funding could encourage more councils to proactively zone land for development and invest in the infrastructure required to support growth . However , shifting local government attitudes will take time , and it remains to be seen whether these incentives are strong enough to overcome legacy attitudes .
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