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Productivity Commission backs Peri Urban Councils' call for infrastructure before housing targets across VictoriaThe Productivity Commission has backed Peri Urban Councils Victoria's call to link housing targets with funded infrastructure, supporting development, coordinated planning and financing for 85,450 new homes across five Victorian growth councils. By news@gippsland - 31st July 2026 - Back to News The Productivity Commission's Housing Supply Regulation Interim Report, released this week, has backed the central case put by Peri Urban Councils Victoria (PUCV) that housing targets must include essential infrastructure that is funded and sequenced before homes can be built. The finding has direct implications for Bass Coast, Baw Baw, Golden Plains, Moorabool and Surf Coast, where councils have been assigned a combined target of 85,450 additional homes by 2051. 
The Productivity Commission has backed PUCV's call for funded infrastructure before housing, affecting five Victorian councils with 85,450-home targets by 2051 Infrastructure enables housingPUCV's June 2026 submission to the Commission’s inquiry argued that housing reform must focus on development-ready land, supported by roads, drainage, water, sewer, electricity, transport, approvals and funding arrangements. Acting Chair of Peri Urban Councils Victoria and Golden Plains Shire Mayor Owen Sharkey said the national report backed the core position advanced by PUCV and its member councils. "The Productivity Commission has backed our central case: a line on a planning map is not a home. Infrastructure is what turns land into housing. Until roads, sewer, drainage, power and transport are funded and sequenced, housing targets remain numbers on a page," he said. The Commission has highlighted that infrastructure planning is often the main constraint on housing delivery in greenfield areas and recommends that housing, rezoning and infrastructure upgrades be sequenced together. It also identifies a potential Commonwealth role in providing low-or no-interest loans, managing funding shortfalls and underwriting infrastructure sequencing risks. Funding unlocks growthPUCV has identified around 332 growth-area infrastructure projects worth more than $1.25 billion that would support about 72,000 homes across its five member councils. "Peri urban councils have targets for 85,450 homes, but the infrastructure bill arrives first. Developer contributions and new rates arrive later. Without upfront finance, the land may be zoned, but it is not ready to deliver homes," Cr Sharkey said. PUCV says the findings strengthen the case for its proposed $90 million Development Contributions Plan Loan Fund and $230 million Peri Urban Capital Infrastructure Fund. PUCV is calling for the Commission's final report to: - Recommend Commonwealth and State forward-finance and capital funding for housing- enabling infrastructure
- Recognise development-ready land, local government financial capacity and the distinct peri urban growth model
- Support practical funding mechanisms that turn planned growth into real homes and liveable communities
Background- Peri urban councils offer a better balance to Victoria’s currently overpopulated capital city Melbourne
- Liveability of these areas across has attracted a growing population which is challenging our members’ ability to meet demand
- Peri urban region already undertakes an important role in the state’s economy, providing employment, essential services, recreational activities and are conveniently located within an easy commutable distance to Melbourne
About Peri Urban Councils Victoria (PUCV)PUCV is an alliance of five municipalities located immediately adjacent to metropolitan Melbourne and Geelong. They are: Surf Coast, Golden Plains, Moorabool, Baw Baw and Bass Coast. These municipalities cover more than 11,000 square kilometres and have a population of nearly 200,000 people Housing and growth- PUCV communities are projected to reach more than 322,000 residents by 2046 - growth of approximately 47 per cent
- Victorian Government has assigned a combined target of 85,450 additional homes across the five councils by 2051
- PUCV has identified around 332 growth-area infrastructure projects requiring more than $1.25 billion to support about 72,000 homes
- PUCV's June 2026 submission called for development-ready land, DCP reform, stronger utility coordination and dedicated infrastructure financing
Productivity Commission interim report- Interim report supports PUCV's central position that infrastructure planning and sequencing are critical to housing supply and identifies a potential Commonwealth role in infrastructure finance
- It has not yet adopted PUCV's specific funding proposals or its call for formal peri urban recognition; these remain priorities for the final consultation phase
Pictures from Peri Urban Councils Victoria website.
Source: http://gippsland.com/ Published by: news@gippsland.com
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