Wednesday, 18 June 2025

Suburban Rail Loop

Evan MULHOLLAND (Northern Metropolitan) (12:19): (954) My question is to the Minister for the Suburban Rail Loop. Minister, in regard to the value capture amount required of around $11.5 billion, Marion Terrill, an independent infrastructure expert, said the following:

These three mechanisms wouldn’t raise anywhere remotely close to $12 billion. The stamp duty on property across all kinds of properties raises $7 billion – so the idea in a few local environments you could somehow get more than that is ludicrous.

The CBD parking levy is small change – it’s about $100 million. It’s not even a rounding error on the amount needed. And the developer charges would just make homes more expensive, which isn’t the solution Melbourne needs right now.

How will the government raise the $11.5 billion required?

Members interjecting.

Harriet SHING (Eastern Victoria – Minister for the Suburban Rail Loop, Minister for Housing and Building, Minister for Development Victoria and Precincts) (12:20): Just to pick up on what Ms Terpstra has so sagely contributed to this discussion, this is a question that has been asked before, and I am very happy to answer it again for avoidance of any doubt. Mr Mulholland, value capture and funding and finance strategies are processes for being able to deliver on nation-building infrastructure that are not unique to this project. This is where, again, we will continue to step through the process through a range of funding streams. As you know, we have completed design work for the SRL between Cheltenham and Box Hill, and it is under construction. The sites have been operational since 2022, Mr Mulholland, and the cost of this stage is on budget and the project is on time. The value capture mechanisms –

Members interjecting.

Harriet SHING: Well, Mr Mulholland, if you want to hear the answer to the question, then I am very happy to provide it to you, but if all you want to do is describe the problem and run a narrative of interjections, then I am not sure what you are doing wanting answers in question time.

The SRL precincts are the work that sits at the heart of the value capture mechanisms, and we have been up-front in the Suburban Rail Loop business and investment case from August 2022. The value capture measures will be targeted at commercial property developers who will receive windfall financial gains from the project and, as I indicated in response to a question yesterday, that 1600-metre area in and around those station areas and the measures will not be targeted at current residential properties, home owners or residents. I just again want to underscore: value capture is not unique to this project; it is not a new phenomenon.

Evan Mulholland interjected.

Harriet SHING: Mr Mulholland, I will take you to your interjection. You said it is a big amount. Yes, it is a big amount, and it is a big project. It is a necessary project that will make sure that as Melbourne moves to becoming a city the size of London by the 2050s we have the infrastructure necessary to support the delivery of tens of thousands of new homes across SRL East – 70,000 homes – and that we have the capacity to deliver jobs and a proximity to work and to recreation closer to where people live. We are bringing world-class transport to those areas, and this is something which I know a number of your colleagues, Mr Mulholland, wholeheartedly support. This is something that we will make sure developers are in a position to contribute to because of the significant financial benefit that they will receive, and it will also be informed by precinct and planning work that, as you know, is underway in consultation with communities and residents.

Evan MULHOLLAND (Northern Metropolitan) (12:23): Thank you, Minister. I note your commentary that you are working through a range of funding streams and will be looking at commercial property developers that would seek to gain a windfall paying that value capture. With that I ask: is it government policy to impose a congestion levy in the SRL precincts?

Harriet SHING (Eastern Victoria – Minister for the Suburban Rail Loop, Minister for Housing and Building, Minister for Development Victoria and Precincts) (12:23): Mr Mulholland, I will go back to the answer that I have given you to this question, the substantive question and answers previously: the value capture mechanisms that we are developing are part of making sure we can deliver on this project. The envelope of the $34.5 billion in the ‘a third, a third, a third’ model – that again is set out in the business case.

David Davis interjected.

Harriet SHING: We will continue to work through the business and investment case, Mr Davis. We will continue to work through value capture –

Evan Mulholland: On a point of order, President, on relevance, I had a very narrow question about whether it is government policy to impose a congestion levy in SRL precincts.

The PRESIDENT: I will call the minister to continue.

Harriet SHING: Thank you, Mr Mulholland. It is government policy to make sure that when we deliver the Suburban Rail Loop, which is currently on time and on budget, we are in a position to do so through a range of mechanisms: Commonwealth funding, state funding and value capture.