This article discusses Infrastructure Australia’s attempt to stimulate reform with sticks, rather than carrots.

Value capture has a place in the funding mix, but it won't supersede the need for user charges, asset recycling and other initiatives to generate the funds needed to pay for our infrastructure. 

Road user charging could deliver a fairer, more sustainable road funding model, and help to manage congestion in our cities. But no politician will touch it at this point in time. In the meantime, more road users are opting to pay Uber and others for journeys (rather than bear the costs of running a car), enabling them to generate significant income from the use of public roads. This trend will accelerate as vehicles become increasing automated. Driverless vehicles will provide an opportunity for government to capture some of this value and, at the same time, side-step the political challenges associated with road user charging. 

Australian governments, at all levels, are keen to use value capture as a mechanism to help fund infrastructure. Various value capture methods have been canvassed, but one that has not yet received the same level of attention is that of voluntary contributions.

The way we presently fund our road networks, and make decisions on where investments in our road network should be made, is suboptimal. We can do so much better.

The community needs to be educated about the flaws in the current system, and the benefits that would be derived by moving to a new funding model.

This article breaks down the New Zealand’s Infrastructure Funding and Financing Act and analyses how it might be applied to offer an exciting solution for wholly or partially funding infrastructure projects.

This article looks at proposed reforms to New Zealand’s system for the funding and financing of local infrastructure, and considers their application to Australia.

There is currently considerable interest in value capture as a means of funding public infrastructure. Whilst opinions differ regarding the contribution that value capture can actually make to the funding task, there seems to be broad consensus to the concept – that those who financially benefit from the provision of publicly funded infrastructure should make an appropriate contribution towards the cost of it.

Listening to the NSW Treasurer speak yesterday about his budget has driven home the funding challenges that NSW will need to overcome in the years ahead.