Local Authorities and State Budget

Smart Cities: Conditional requirements would mean state and local authorities would need to prove economic benefits, according to Nine News Australia. The plan would encompass major projects such as Sydney Badgerys Creek airport and may include the controversial Melbourne Metro rail project, which the Victorian government announced only days ago would be funded solely by the state budget. Detailed in the federal budget, the ‘Smart Cities’ project will push for private investment by leveraging its balance sheet to reduce Commonwealth grants for train lines, roads and other infrastructure. We cannot afford to fund every project of merit from our budget, the policy document reads. The initiative will come with an innovation financing unit to strike deals with the private sector. Recipients for the funding would need to show they could return it to the Commonwealth through faster economic growth and tax revenue, as well as value capture where the value added to impacted areas is collected to recoup costs. (news.financializer.com). As reported in the news.