Value capture for Victoria’s major projects

In an Australian first, the Victorian Government has set out a new strategy Government to create the maximum value for Victorians from its multibillion-dollar pipeline of major projects.

The Value Creation and Capture Framework centres on realising and creating value, rather than taxing beneficiaries and sets out how the Victorian Government will harness its record investment in infrastructure to generate benefit for taxpayers and broader social benefits such as jobs and skills, the better use of surplus land, as well as better housing, community facilities and open space.It will provide a clear picture for business and the community of the types of value capture and creation initiatives the government will support.

The framework will apply to all major projects and precinct developments in Victoria, with agencies required to explore all value capture and creation options in the development of their proposals.

Victorian Minister for Major Projects, Jacinta Allan, said, “We’re investing more in major projects than any government in Victoria’s history, and this framework will maximise that investment – creating local jobs, building new facilities and supporting those who need it most.”

The Federal Government has suggested that one type of value capture – beneficiary charging – could be used to replace, or be a condition of, grant funding from the Commonwealth Government.

The Victorian Government supports value capture, but also recognises the role of government to invest in better communities without charging those communities for it.

The new framework will complement other State Government initiatives such as the Major Project Skills Guarantee which ensures that at least 10 per cent of all work on major projects in Victoria is done by trainees, apprentices and cadets.

In addition, under the Local Jobs First Policy, strategic projects valued at over $50 million require companies to meet minimum local content requirements using local firms, materials, expertise and skills.

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