Developing incentive

Council policy on waiving fees to help with housing

Cairns Regional Council has hung a carrot in developers’ faces with an incentive policy that aims to, among other ambitions, increase the region’s social housing stock.

The council’s development incentive, which expires in June, is a Covid-19 legacy policy that allows for the waiver of infrastructure fees on residential developments in the city, Gordonvale and Babinda.

According to the report put before the planning and environment committee meeting on Wednesday, $2.2m of charges were waived under that policy, or about five per cent of all infrastructure charges revenue over three years.

In March, councillors supported the investigation of a new incentive policy.

It would allow councillors to waive infrastructure charges on any development approved after July 1 that it deemed to be “catalytic”.

Social and affordable housing developments are top of the priority list.

But developments that “broaden the economy” – such as aviation, marine, defence, health, education or manufacturing infrastructure projects – will also be considered.

Developments that contain “tropical design” or that contribute to the “revitalisation of Cairns CBD” will also be considered for financial support.

Division 2 councillor Rob Pyne said it was a good policy.

“Normally I oppose waivers, but this is one way we can help the housing crisis,” Mr Pyne said.

“I think council should do what it can to solve this issue.”

Developments must be in Cairns City, Cairns North, Gordonvale or Babinda.

According to the report, the council estimates $6.4m of charges, including $3m on rental accommodation development, will be waived in the three-year life of the policy.

Deputy Mayor Terry James said the policy aligned with recent state and federal government policies that also incentivised development to increase housing supply.

“The state are coming up with a land tax exemption. It augurs well if we all get on board – the feds, the state and the council – for multi-unit development,” Mr James said.

He said the $6.4m expected waiver of infrastructure charges was an estimate only.

But he said the state government’s land tax announcement had some developers interested across the wider region.

“I understand ... there were quite a few developers talking to our departments,” he said.