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• Introductions• US Studies Centre + AECOM collaboration• Purpose of meeting• Agenda

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Considerable confusion and some disagreement over what value capture is.Roadmap presents my attempt to clarify basic concepts based upon• personal experience using these methods in Denver Colorado• Thought leadership research undertaken by my AECOM colleagues and myselfNot just a funding mechanism – holistic approach to infrastructure investment andeconomic development that recognises and leverages public investment, particularlyin transport infrastructurePrinciples include concepts promoted by SMART Growth advocates and integratedtransport and land use planningPrinciples include• More compact and higher density development around transport noges• Reduced reliance on public transport• More efficient use of existing and augmented infrastructure• Reduced urban sprawl• Revitalised CBDs.Explain graph• Captures incremental growth – levies are not value capture – regressive – but

simple and relatively easy to implement

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• In purest form, VC is not a new tax

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Recent Tax Reform initiatives on funding – lets pick on stamp dutyResearch over the past 6 months• Re:Think – Tax Discussion paper Commonwealth Treasury• Out of reach? Economics Committee Commonwealth Senate Economics

References Committee• Grattan Institute – Property Taxes

• 1.5% / 1.5% split tax

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Australia’s cities must become more productive but trends not favourable• Productivity 2.1% in 90s – 1.5% to 2054• Participation rate declining from 64.6 to 62.4% to 2054• Population growth 1.4% to 1.3% to 2054Global competitiveness dropped from 21st to 22 in 2015• NZ increased from 18th to 17th

• UK increased from 10th to 9th

Planned transport investments in NSW and Victoria are record levels• NSW 2014-15 budget 4 yr spend on productive infrastructure = $61.4 bn / $1.63 this

year on transport• Victoria record budget $5-6bn on level crossing and $9-11bn on metro rail• Qld transport budget 2015 $4bn• Need to make sure we are getting best return on investmentTax Reform

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Recent Tax Reform initiatives on funding – lets pick on stamp dutyResearch over the past 6 months• Re:Think – Tax Discussion paper Commonwealth Treasury• Out of reach? Economics Committee Commonwealth Senate Economics

References Committee• Grattan Institute – Property Taxes

• 1.5% / 1.5% split tax

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Recent Tax Reform initiatives on funding – lets pick on stamp dutyResearch over the past 6 months• Re:Think – Tax Discussion paper Commonwealth Treasury• Out of reach? Economics Committee Commonwealth Senate Economics

References Committee• Grattan Institute – Property Taxes

• 1.5% / 1.5% split tax

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Recent Tax Reform initiatives on funding – lets pick on stamp dutyResearch over the past 6 months• Re:Think – Tax Discussion paper Commonwealth Treasury• Out of reach? Economics Committee Commonwealth Senate Economics

References Committee• Grattan Institute – Property Taxes

• 1.5% / 1.5% split tax

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Recent Tax Reform initiatives on funding – lets pick on stamp dutyResearch over the past 6 months• Re:Think – Tax Discussion paper Commonwealth Treasury• Out of reach? Economics Committee Commonwealth Senate Economics

References Committee• Grattan Institute – Property Taxes

• 1.5% / 1.5% split tax

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Recent Tax Reform initiatives on funding – lets pick on stamp dutyResearch over the past 6 months• Re:Think – Tax Discussion paper Commonwealth Treasury• Out of reach? Economics Committee Commonwealth Senate Economics

References Committee• Grattan Institute – Property Taxes

• 1.5% / 1.5% split tax

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Crossrail$30bn - 26% funding by 25 – 30 year commitment from BRS• Increases transport capacity by 10%• 1.5 million people within 45 min of key employment, leisure and business districts• More specialised workers can find more specialised jobs, higher value products

and services• First time TfL focused on entire customer experience• Includes GVA and WEBS not just travel savings

Contrast with NSW govt study in 2010 Lane Cove, Cross city and M7 projects• “only limited benefits taken into consideration• $15% of $3bn total investment missed• $450m loss of benefits• Did not consider WEBs and non-transport benefits including

• New residential and employment areas, Increased density, Urban amenityimprovements, Impacts on residential and commercial costs,Agglomeration benefits

Similar opportunities at Melbourne Metro

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Governance - All levels of government involved in funding and decision-makingStronger urban renewal powers + sale of improved sites to private partnersPrivate sector intimately involved in master planning precinct and purchasingdeveloped siteFunded from value uplift and sale of sites to private partners for a profitPrecinct based planning and funding ensured consistent approach

Strong similarities to Central to Eveleigh precinct but C2E doesn’t have the holisticapproach to funding and delivery

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Governance - All levels of government involved in funding and decision-makingStronger urban renewal powers + sale of improved sites to private partnersPrivate sector intimately involved in master planning precinct and purchasingdeveloped siteFunded from value uplift and sale of sites to private partners for a profitPrecinct based planning and funding ensured consistent approach

Strong similarities to Central to Eveleigh precinct but C2E doesn’t have the holisticapproach to funding and delivery

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