According to a new report from integrated infrastructure firm AECOM and Consult Australia, billions of tax payer dollars are being put at risk by Commonwealth and State Governments who are failing to adopt more innovative funding models for transport infrastructure projects.

The indirect beneficiaries of projects in Australia, such as property owners located close to new train stations, receive a substantial unearned and untaxed financial windfall which are effectively subsidised by the public.

According to the report’s author and AECOM technical director, Joe Langley, a significant proportion of this could be captured to repay the loans or infrastructure bonds that are used to fund the project.

The AECOM and Consult Australia Value Capture Road Map identifies billions of dollars that could be lost if Australia continues to ignore the additional indirect value created as a result of publicly funded infrastructure.

In New South Wales there is over $60 billion worth of committed projects which the Government plans to fund from the leasing of public assets.

Read the full media release here.

Download the executive summary of the report here.