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Development Contributions for Regional and State Infrastructure – A Case Study of Melbourne, Australia

ABSTRACT New development in greenfield areas generally requires new infrastructure. To assist with funding this infrastructure, development contributions are increasingly used. Mostly, contributions are collected for local trunk infrastructure, but regional and state infrastructure for transport, health and other purposes is also needed. The Growth Area Infrastructure Contribution (GAIC) in Melbourne, Australia, is an example of a charge that is specifically collected for state-funded infrastructure. Building on previous research, this article explores the extent to which the GAIC reflects good practice and discusses idiosyncrasies and opportunities for improvement, in view of similar contribution schemes elsewhere, e.g. in New South Wales.