carefully, recognising that these policies lend Value capture methods themselves to larger, densely populated urban Value capture is an alternative approach to environments where uplifts in land and amenity sourcing funds to finance infrastructure delivery. value are significant and readily quantifiable. It refers to government capturing a portion of the incremental value created by government policy What we will do and investment decisions. Investigate the feasibility of outcomes- For example, government choosing to rejuvenate based funding models for Northern Territory an industrial area into commercial and residential projects. land could result in increased land values for adjoining landholders as their land parcels benefit Investigate a value capture framework, from improved amenity. which recognises the Northern Territory context, as a potential model to fund Value can be captured through a range of infrastructure delivery. different approaches including levies, rates and taxes as well as the sale of commercial Review existing formal and informal opportunities. An equitable and efficient policy to infrastructure contribution policies to secure capture value created as a result of government an equitable, transparent and integrated decisions needs to be developed and tested approach that supports private investment. before value capture initiatives can be introduced. Introduce innovative alternative models of infrastructure financing and funding to The Australian Government and Infrastructure support the efficient delivery of strategic Australia are keen to progress capture projects. initiatives as one approach to paying for new infrastructure. The Northern Territory is conscious of the need to approach this issue
Value capture methods Value capture is an alternative approach to sourcing funds to finance infrastructure delivery. It refers to government capturing a portion of the incremental value created by government policy and investment decisions. For example, government choosing to rejuvenate an industrial area into commercial and residential land could result in increased land values for adjoining landholders as their land parcels benefit from improved amenity. Value can be captured through a range of different approaches including levies, rates and taxes as well as the sale of commercial opportunities. An equitable and efficient policy to capture value created as a result of government decisions needs to be developed and tested before value capture initiatives can be introduced. The Australian Government and Infrastructure Australia are keen to progress capture initiatives as one approach to paying for new infrastructure. The Northern Territory is conscious of the need to approach this issue carefully, recognising that these policies lend themselves to larger, densely populated urban environments where uplifts in land and amenity value are significant and readily quantifiable. What we will do Investigate the feasibility of outcomes- based funding models for Northern Territory projects. Investigate a value capture framework, which recognises the Northern Territory context, as a potential model to fund infrastructure delivery. Review existing formal and informal infrastructure contribution policies to secure an equitable, transparent and integrated approach that supports private investment. Introduce innovative alternative models of infrastructure financing and funding to support the efficient delivery of strategic projects.
infrastructure-strategy.docx