Launching the population projections, Victoria in Future 2008 (VIF) and a planning update, Melbourne @ 5 million Premier John Brumby said an additional 600,000 dwellings would be needed over the next 20 years.

“These projections are based on the 2006 Census and predict that from 2006 to 2036 Melbourne will grow by 1.8 million people, and regional Victoria by almost half a million,” Mr Brumby said.

“We are attracting record numbers of new citizens, more than anyone imagined even five years ago, because Victoria is an attractive option to live, work and raise a family.

“We are seeing fewer Victorians moving interstate and higher birth rates are also contributing to the growth of our population.”

Mr Brumby said good planning was the key to ensuring Melbourne retains its status as one of the world’s most liveable cities. 

“Today’s announcement is consistent with the principles of Melbourne 2030 which is about directing growth to key corridors, building up activity centres and providing quality infrastructure for communities,” he said.

He said work would begin immediately on expanding the UGB to accommodate 134,000 more dwellings and maintain housing affordability.  Some 316,000 dwellings will also be needed in Melbourne’s established areas, and 150,000 in existing growth areas.

“The new UGB will be in place by September 2009 after the Government has consulted with community, councils and developers on where the new boundary will be drawn,” Mr Brumby said.

Mr Brumby said today's decision would deliver a financial windfall for landowners whose land is brought into the revised UGB.

“Those landowners, who as a result of this planning decision will now be able to develop their land in the revised UGB, will pay a one-off Growth Areas Infrastructure Contribution (GAIC) to help share the cost of building community infrastructure more fairly,” Mr Brumby said.

“This will be a simple, flat rate charge of $95,000 per hectare and will apply to land brought into the new UGB.  As previously announced, a contribution of $80,000 a hectare will apply to land which was brought into the UGB in 2005.”

Mr Brumby also announced that as a result of a review of the 2005 state developer contribution the Government would remove the infrastructure contribution for land that was within the boundary prior to 2005.
 “This represents a $546 million saving in development costs, on over 60,000 new homes which are to be built in the next 10 years and will act as a one-off measure to boost affordability,” he said.

All funds raised through the GAIC will be used to provide vital infrastructure and oversee development in Melbourne’s growth areas. Local councils will be able to access money from a new Growth Areas Development fund for capital works in the growth areas.

The GAIC is payable only once and cannot be passed on in future sales.

Mr Brumby said the Government would also release a blueprint for regional Victoria in 2009 to provide for future government investment and programs in the regions.

Planning Minister Justin Madden said Victorians should be proud to live in a place where more people want to build a quality life with their families and contribute to their community.

“We want to provide more job and housing choices for the future.  Exactly which year we will reach 5 million people is not certain, what is certain is that it will happen and we will be ready,” Mr Madden said.

“The population growth forecasts are equal to around one per cent per annum in established areas and around four per cent per annum in growth areas.

“This steady growth allows us to make hard decisions now to protect the character and amenity of all our suburbs.”

Mr Madden said Melbourne @ 5 million is a planning update that uses the most current information available to continue the pattern of development established in Melbourne 2030, including a network of activity centres, with development focused on designated growth areas, both supported by public transport.

“The government will build up on the success of the Transit Cities funding program and promote some centres to become Central Activities Districts (CAD),” Mr Madden said.

“These will offer CBD-like jobs, where the government will focus on building employment opportunities and public investment. These areas will be Broadmeadows, Box Hill, Dandenong, Frankston, Footscray and Ringwood.

 “The CADs will help move away from the current single CBD-focused city structure, with transport and jobs corridors all leading in and out of the central business district. 

“The distance between where people live and where they work is increasing, putting further pressure on our transport system.

“These CADs will mean a better distribution of jobs and activity, so that Melburnians can work closer to where they live.”

Melbourne@ 5 Million also states:

• That the expansion of the UGB should be mainly focused in the west and in the north with a small proportion of land supply for development in Melbourne’s south-east;
• Council infrastructure charges in growth areas will be reformed in consultation with growth area councils and the development industry; and
• The Government to work with the Commonwealth to protect two important grassland areas to the west of Melbourne.

Victoria in Future 2008 and Melbourne @ 5 million are available online at: www.dpcd.vic.gov.au/planning