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120 Business View Australia - August 2015
lower rate land taxes could deliver real
dividends for economic growth and
productivity, and housing affordability
and supply.”
Another issue that UDIA has been
consistently taking up with the federal
government is the need to strengthen
the country’s infrastructure so that it
can continue to cater to the growing
population. The recently issued
Australian Infrastructure Audit Report
states that the country’s population is
expected to grow from 22.3 million in
2011 to 30.5 million in 2031.
Australia’s population growth is the
fourth fastest amongst OECD countries
and if only those OECD countries
with a population over 10 million are
considered, it is the country with the
highest rate of population increase.
The four cities of Sydney, Melbourne,
Brisbane and Perth are expected to
grow by 5.8 million, increasing their
population from 12.8 million in 2011
to 18.6 million in 2013.
While this population growth is
required for the economy to expand, it
is essential that urban infrastructure
keep pace so that the quality of life
in Australian cities is maintained. The
UDIAhas specifically raised the issue of
providing adequate transport facilities
in the country’s cities. The Australian
Infrastructure report states that this
key area can prove to be a significant
bottleneck in the development and
growth of the country’s economy.
The report points out that in 2011
the cost of delays on roads in the
six largest capital cities was to the
tune of $13.7 billion. If adequate
steps are not taken it is expected
that the cost of delays could
escalate to $53.3 billion by 2031.
It is also expected that the demand
for public transport will double by
2031.
In these circumstances, it is
imperative that the government take
up infrastructure projects to prevent
Australian cities from slipping into a
situation where public services and
infrastructure are not at developed-
country levels.
A third issue which UDIA has been
raising with the federal government is
regarding the affordability of housing
in Australia’s cites. The Institute
has pointed out that over the years
the increase in the cost of housing
has greatly exceeded increases in
income. This has resulted in taking
housing out of the reach of not only
low income households, but putting
many middle income households
under great financial strain as well.
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