Jacob Wackerhausen

LETTER: Open for Business

CONGRATULATIONS should go to the council for its Open for Business incentives. The local branch of the Urban Development Institute of Australia (UDIA) fully supports this initiative.

Before people start suggesting that ratepayers are funding developers , it is important to explain what Infrastructure Charges (ICs) are. Basically , ICs or headworks as they are sometimes also called, are a tax to connect into existing services such as water, and sewerage. and so on. The developer , builder or farmer still pays for 100% of all services costs of within the project.

A few years ago, ICs were an almost insignificant amount. In recent years they have grown to many thousands of dollars per block to the point of being a disincentive to invest but also adversely affecting effecting affordabilityby pushing development costs up. Construction has struggled.And that is what has occurred. The development and building industries have struggled.

The council and, therefore ratepayers, will benefit over time from an increased rate base along with more jobs in the building and construction.



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