International Best Practices in Infrastructure Funding: Lessons for Australia’s Outer Metropolitan Growth Areas

This report supports the National Growth Areas Alliance (NGAA) in advocating for dedicated infrastructure investment aligned with housing delivery in Australia's outer metropolitan growth areas. It highlights important areas for improvement within the funding programs proposed in the Commonwealth of Australia, which primarily focus on broader urban issues and do not fully address the specific needs of these growth areas.

The report examines international best practices in infrastructure funding to offer insights into strategies that could help tackle the challenges faced in outer metropolitan growth areas. The methodology employed includes a rapid systematic literature review that analyses Federally (or nationally) driven infrastructure funding strategies from selected international case studies, providing timely evidence for policymakers. Key themes evaluated include longevity, sustainability, collaboration, community-defined needs, prioritisation, and evaluation.

The case studies selected include the UK's Local Economic Partnership program, Canada's Investing in Canada Plan, the US's Community Development Block Grant program and Tax Increment Finance initiative, and the Netherlands' Infrastructure and Spatial Planning Fund program. These programs demonstrate a commitment to long-term infrastructure needs through multi-year funding frameworks that ensure stability and consistent investment across political cycles. They prioritise projects that address the specific challenges of outer metropolitan growth areas, emphasising sustainability and collaboration among various stakeholders. By aligning funding with community-defined needs, these programs incorporate robust evaluation processes that continually assess and improve outcomes, ensuring that investments are impactful and responsive to local contexts.

The Commonwealth government has an opportunity to enhance infrastructure funding approaches by drawing on international best practices. Current funding systems in Australia could benefit from improvements in areas such as longevity, sustainability, cross-sector collaboration, alignment with community needs, and systematic evaluation. By adapting relevant strategies from abroad, the government can refine these approaches to suit Australia's specific regulatory and institutional context. Key to this adaptation is tailoring international models to local requirements, engaging stakeholders, and implementing ongoing evaluation mechanisms, enabling communities to actively shape and monitor outcomes.

To strengthen funding frameworks in Australia, the Commonwealth government should consider:

· Establishing multi-year funding commitments to ensure stability in infrastructure planning and maintenance.

· Strengthening collaboration with local stakeholders and community organisations.

· Implementing integrated funding frameworks that focus on long-term community needs.

· Developing clear prioritisation criteria for impactful projects that specifically address the needs of outer metropolitan growth areas.

· Incorporating regular evaluation to guide continuous improvement.

Adopting these recommendations can help ensure that infrastructure investment more effectively addresses the specific challenges of outer metropolitan growth areas, fostering the development of resilient and sustainable urban environments.