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What's wrong with this picture?

By Ross Elliott - posted Thursday, 29 March 2012


The big picture view also tells another story. Consider the taxes and revenues this picture represents. Each home pays rates to the local council: rates they would not receive without the development. The residents pay income taxes and GST, and when their homes are sold, stamp duty is paid. Businesses in this picture pay payroll and company taxes and a host of other fees and charges to local, state and federal governments. The total tax generation story is one that would be worth study in its own right, but however you think about it, the headline number would be massive.

Opponents would argue that all these people and businesses could equally have been absorbed into existing urban fabric, but the reality is that people have chosen to live here and that choice leads to a direct and measureable economic benefit to government. This runs counter to the subtext argument, popular in some public policy circles, that outer suburban development is costly to government. But in what way? Governments and the communities they represent, it could easily be argued, earn a great deal more from the economic activity represented in this picture than they ever contribute to.

Finally, despite all the plans and the talk, what’s represented in a picture like this (or others like it) owes little to government. Drawings and sketches in official planning documents are fine, but it’s only when a developer takes the risk that people find themselves with homes to live in, communities to be part of, workplaces, shops, and entertainment precincts and even increasingly healthcare and education facilities for themselves and their families. That simple message seems to have been forgotten in the corridors of power.

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What’s wrong with the picture? Nothing. Indeed, it’s the sort of picture our policy makers and opinion leaders could be more supportive of, rather than the subtle ‘anti-suburban’ derision that can infect some planning circles. No one should take this is an ‘either or’ proposal on my part: urban renewal and redevelopment, the creation of high and medium density housing, TODs – all have equally legitimate claims as products suited for their markets. But we risk losing balance and perspective if we fail to acknowledge that consumers and businesses are the best people to make decisions about where they want to live, work and play, and our public policy settings could better reflect that.

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About the Author

Ross Elliott is an industry consultant and business advisor, currently working with property economists Macroplan and engineers Calibre, among others.

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