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Queensland councils have called on the state government to allow them to increase charges on property developers to fund essential local infrastructure, such as drainage, pipes and roads.
The infrastructure charges they can impose on developers is capped by the state government, but councils warn it may leave them with a multi-billion-dollar funding gap.
The Local Government Association of Queensland (LGAQ), the state's peak body for councils, said the gap could add hundreds of dollars every year to rates bills.
It is calling on the government to lift and "appropriately" index the existing cap on infrastructure charges, so councils can levy greater fees on property developers.
LGAQ president Mark Jamieson said within South East Queensland, councils are expecting a trunk infrastructure funding gap of $1.54 billion over the next four years.
"If councils were forced to pass that on, it could add an extra $269 each year to a residential rates bill," Mr Jamieson said.
"In regional Queensland, the forecast gap is more than $650 million over the next four years, which could add an additional $437 per annum to rates for regional residential properties.
"Queensland communities rely on councils to provide critical infrastructure like roads, parks and water and wastewater to keep pace with growth."
The LGAQ calculated the figures based on research with Strategic Asset Management, analysing the impact in all South East councils and a "representative sample" of 12 regional councils.
Property Council critical of proposal
The Queensland government has been capping infrastructure charges since 2011, but the LGAQ does not believe subsequent increases to that cap have kept pace with construction costs.
Property Council of Australia Queensland executive director Jess Caire indicated it was opposed to LGAQ's proposal.
"While it is important to ensure Queensland's infrastructure keeps up with growth, increasing charges directly related to housing in the middle of a housing crisis is not the way to do it," she said.
"Adding further cost to building homes will only make housing more expensive for Queenslanders.
"The private sector builds 96 per cent of homes needed across local communities, and now more than ever all levels of government and the private sector should be working together to deliver the homes needed to house Queensland's growing population."
LGAQ chief executive Alison Smith argued that a modest increase in infrastructure charges would not necessarily result in higher home prices.
"The price people pay for housing is the price the market is willing to pay – not simply the sum of its parts," she said.
"Councils are just asking for fairness, especially given they have very little ability to fill the gap without impacting ratepayers."
Government wants more information
Local Government Minister Meaghan Scanlon would not say if the government would lift the infrastructure charge cap.
"We're waiting for information from LGAQ about how they are spending their infrastructure charges," Ms Scanlon said.
"The [Steven] Miles government is investing $89 billion over the next four years for our infrastructure Big Build, and we're also investing in local councils."
Councils must have a local government infrastructure plan in place before they can levy infrastructure charges.
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