List of Recommendations

Recommendation 1

2.193

The Committee recommends that the Australian Government examines ways to promote a better balance of settlement through decentralisation to the regions linked by faster transport connectivity and particularly through high speed rail.

Recommendation 2

2.194

The Committee recommends that the Australian Government, in conjunction with state and territory governments, develop a framework for the specification and evaluation of proposals for the development of a high speed rail network in eastern Australia, with an emphasis on strategic decentralisation, regional economic development, value creation and value capture to determine the viability of private sector proposals, routes, schedule for development and funding for the project. The Committee further recommends that it is time to progress the planning work that must be done by all levels of government to facilitate high speed rail. The Committee recommends that state and federal governments consider appropriate coordination arrangements, including if and when a planning authority is required to progress high speed rail.

Recommendation 3

2.195

The Committee recommends that the Australian Government investigates options for private funding of high speed rail through value capture.

Recommendation 4

2.196

The Committee recommends that the Australian Government, in conjunction with state and territory governments, monitor and, when appropriate, assess the feasibility of Hyperloop in Australia as a high-speed mass transit system.

Recommendation 5

2.197

The Committee recommends that the Australian Government, in conjunction with state and territory governments, explore the potential of novel and alternative technology to provide an innovative and flexible transport system to urban Australia.

Recommendation 6

2.198

The Committee recommends that the Australian Government continue to recognise the importance of road transport in Australia and investigate new technologies which can make road use safer, cheaper and more efficient, including development of autonomous vehicles, low-emission vehicles, and smart road infrastructure.

Recommendation 7

3.75

The Committee recommends that the Australian Government recognise the potential contribution towards the costs of new transport infrastructure of the capture of increased property values and associated taxes that directly result from the new connectivity.

Recommendation 8

4.124

The Committee recommends that the Australian Government, in conjunction with state and territory governments, develop a system for coordinating the planning and funding of major infrastructure projects across all levels of government, including the quarantining and hypothecation of funds to projects, the allocation of funds to projects being contingent upon compliance with prescribed planning and funding requirements.

Recommendation 9

4.125

The Committee recommends that the Australian Government, in conjunction with state and territory governments, examine whether efficiencies can be achieved through the coordinated procurement of vehicles and rolling stock for transport infrastructure, particularly in relation to new bus fleets. This coordinated procurement should ensure, when practicable, that Australian materials and products, skills and services are maximised in project delivery.

Recommendation 10

5.125

The Committee recommends that the Australian Government seek a memorandum of understanding to establish value capture mechanisms for individual transport infrastructure projects as a condition of federal funding which applies to property value uplift that results from a combination of rezoning and new transport infrastructure. In doing so, the Government should:

define specific geographic areas nearby to new transport infrastructure where this mechanism will apply to properties;

set a threshold of value uplift for property which will incur the new value capture mechanism;

establish an offset mechanism, whereby commercial properties whose value uplift is partially captured by this mechanism can be offset against their capital gains tax liability; and

hypothecate any revenue that results from this mechanism into a dedicated infrastructure fund.

Recommendation 11

5.130

The Committee recommends that the Department of Infrastructure and Regional Development, in conjunction with state and territory governments, develop a toolkit of value capture mechanisms that can be applied by all levels of government, taking into account the different conditions in the various states, territories and local council areas. The use of the mechanisms in the toolkit should be a requirement in cases where the federal government is to contribute funding towards major infrastructure projects that will generate an uplift in property values or increased economic activity.

Recommendation 12

5.179

The Committee supports the roll-out by the Australian Government of City Deal-type agreements with the various state, territory and local governments. These agreements should:

involve federal, state and territory, local governments, local communities, landholders and developers and other community stakeholders in the prioritisation and negotiation processes;

consider the building of new infrastructure from a state-wide or regional master plan perspective, rather than on a project-by-project basis;

establish priorities for infrastructure projects based, in part, on the uplift in value that will result;

drawing on the proposed value capture toolkit, define the value capture mechanisms that will be applied, and determine the amount of this uplift that can be captured by the three tiers of government involved in the agreement;

in the negotiation process, the different levels of government should be prepared to consider forgoing certain types of revenue in order for the greatest possible level of value capture to be achieved overall;

clearly define the amount of funding that will be provided by the governments and councils that are party to the deal, as well as the funding that is expected to come from the application of value capture mechanisms;

establish metrics for performance, using gross value added as the lead metric; and

culminate in a written agreement that clearly defines the roles of each tier of government involved in the agreement.

Recommendation 13

5.181

The Committee recommends that the Australian Government develop value capture models that can be applied to major infrastructure projects (such as high speed rail) and seek to negotiate with the states and territories a consistent and coordinated approach to the application of value capture for such projects. In so doing, the Australian Government should be prepared to act as the single point for the collection of value capture revenues.

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