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ACT Would Share GST with Councils to Fund Infrastructure

An architect working on a draft with a pencil and ruler
Photo by Daniel McCullough. The BFD.

Brooke van Velden
ACT Deputy Leader and Housing spokesperson


A new GST-sharing scheme announced by ACT today would get councils issuing resource consents with the great gusto that they have for giving parking tickets.

ACT’s GST-sharing scheme is estimated to deliver $1 billion every year to support local development enabling infrastructure, but councils that consent more, get more.

Instead of forcing councils to come begging for special funds from the Government, ACT would provide an enduring and predictable solution for infrastructure funding.

It encourages councils to consent more because they get more when buildings are completed.

The only time you get prompt service from a council is when they’re issuing a parking ticket. They’ll come to you, anywhere, anytime, because there’s money in it. Imagine if councils issued resource consents with the same gusto as they issued parking tickets?

Currently, local councils face poor incentives to build. Every new development involves costs to existing ratepayers to provide new roads, water, and sewerage connections. These costs act as a disincentive for councils to approve new houses and subdivisions.

With councils shouldering the cost for new infrastructure to support housing, it’s no wonder they slow down development,”

We don’t need more central planning and dictates; we need incentives to consent more developments. That’s what this policy does.

ACT believes in better, longer-lasting solutions. As a country, we deserve better when it comes to housing to ensure we can live our best and most fulfilling lives.”

More details can be found here.

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