Allan government holding $400m from Growth Areas Infrastructure Contribution

Herald Sun

28-06-2025

The Allan government is sitting on hundreds of millions of dollars desperately needed for roads, parks, libraries and swimming pools in Melbourne's outer suburbs.
Landowners and developers in the city's booming growth areas have coughed up more than $1.4 billion to fund desperately needed local infrastructure.
But the state government is banking more than $230 million, despite pleas from councils to fund key projects.
Melbourne's west is handing over almost as much as the north and south corridors combined but being snubbed on hundreds of millions of dollars worth of projects.
The levy – known as the Growth Areas Infrastructure Contribution – has been collected by councils from developers of new housing estates since 2010 to help fund local schools, services and recreational spaces.
It is then pooled by the state government who decides when and where it is allocated across seven areas, including Melton, Mitchell and Casey.
Despite desperate calls for funding to fix crumbling roads, new sporting fields and public transport services, figures showed just 72.4 per cent had been committed to projects as of March — leaving a $396 million gap.
Top contributor, Melton, had only had 51.2 per cent of the funds it had raised committed to local projects, according to the data — the lowest commitment rate.
Northern Melbourne – Mitchell, Hume and Whittlesea – were also being short changed, raising $130 million more than what had been committed to local projects.
Melbourne's southeast – Casey and Cardinia – are punching above their weight, with almost all of the funds collected flowing back to local projects.
A government spokesman claimed the publicly available figures were outdated and that the gap had decreased from $396 million to $234 million, with a total of $1.2 billion committed.
However, he refused to provide the data.
The most recent projects funded under GAIC have been the $60 million spent on the Ison Road Overpass in Werribee, $35 million towards a new school in Cobblebank, and more than $150 million for new bus services across Melbourne.
Property Council of Australia Victorian executive director Cath Evans said communities in Melbourne's west were waiting too long to see the benefits of GAIC funding.
'The purpose of the levy is to deliver timely infrastructure to support population growth — but delays in spending mean families are moving into new suburbs without the roads, schools and health facilities they urgently need,' she said.
City of Melton Mayor Steve Abboushi called on the state government to commit to a 'guaranteed percentage of funding and associated transparency' to help fund pools, libraries and active transport.
He urged the government to match a $15 million Commonwealth commitment to the new Plumpton Aquatic and Leisure Centre.
'As one of the fastest growing areas in Australia, we need urgent investment in transport infrastructure including additional train stations, bus services, and investment in associated infrastructure in public transport such as carparking,' he said.
Wingate Director of Research Andrew Perkins said while the intent behind GAIC was strong, delivery needed to 'keep pace' with growth to ensure communities get the infrastructure they need when they need it.
Opposition planning infrastructure spokesman Richard Riordan said greenfield developers were 'beyond frustrated' as he accused government of stockpiling the funds to help offset the budget.
It comes as furious Point Cook residents lashed Wyndham Council after they decided to spend $24 million in separate developer contributions in other parts of the LGA.
Point Cook resident Dwayne Kelly, who started a petition, said the decision had caused an 'uproar among Point Cook residents' who had been calling for new sporting facilities.