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Value capture: a global funding approach

Value capture has been used successfully to help fund major infrastructure projects across Australia and around the world.

In the UK, the Mayoral Community Infrastructure Levy (MCIL) is a charge on developers that recovers part of the cost of delivering London’s Crossrail (also known as the Elizabeth Line). The charges are based on the net additional floorspace of a development. A 2023 report on the levy concluded it did not have any discernible adverse impact on development activity in London.

Queensland imposes the Transport Improvement Levy, a supplementary charge on municipal rates used to fund the Gold Coast light rail project.

In the ACT, Lease Variation Charges apply to developments benefiting from policy changes that enable them to develop land at higher densities.

In New South Wales, the State Government imposes a parking space levy payable by owners of off-street car parks that funds improvements to public transport infrastructure and services.

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