Master Builders Victoria (MBV) acknowledges today’s announcement by the state government that it intends to introduce a simplified infrastructure funding mechanism, to support its push to stimulate the housing and development industry.

Conceding that the current funding model is overly complex and confusing, the government has announced it will be replaced with a broad-based contribution, collected at state level rather than the current mix of state and local government payments.

Master Builders Victoria will be one of the stakeholders in a working group asked to report back to government with a funding reform proposal by March 2025.

“While everyone understands the need for appropriate infrastructure in growing cities and towns, for many years now, there has simply been too much confusion about what money has been going where and how it has been invested,” says MBV CEO Michaela Lihou.

“We need clarity about exactly how this funding will address future infrastructure requirements and importantly, if it provides value for money.”

“We also need transparency so these contributions can essentially be ‘tracked’ through the system to ensure they don’t disappear into general revenue,” says Ms Lihou.

“We’ll also be urging the government to require the payment of the contribution where it will have the least impact on the cost of construction – at the end of the project, rather than on planning approval where the builder is left to carry the costs and interest charges until the project is completed.”

“Simplifying the funding system makes sense, but we also need to ensure that these new charges deliver clearer, fairer and better infrastructure outcomes for more Victorian homeowners.”

Available for comment: Master Builders Victoria CEO Michaela Lihou. 

Media enquiries: Leigh McClusky 0411 711 780  [email protected]