Aurora developer charges cause more heartache

MR Spiralling Aurora developer charges are adding to Tasmania’s housing and construction woes, with reports of 1000 per cent increases in charges since July 2012, according to the Property Council and Master Builders Tasmania.

Executive Director of the Property Council Australia, Tasmania Division, Mary Massina said she has been inundated with calls from investors in recent months over the issue of headwork’s charges, not only from TasWater but also Aurora.

“In one case, a developer paid $2,450 to connect power to each block of land in a nine lot sub-division and then when he went to do the same on a further five blocks next door, and was quoted $38,000 by Aurora for each block,” Ms Massina said.

“Put simply, these developer charges are stopping the creation of jobs and investment in Tasmania, with investors turning their back on the State and taking their money elsewhere.

“At a time when our unemployment rate is 44 per cent above the national average, you would think that state and local government would do everything in their power to stimulate jobs and growth in the economy instead of attempting to wash their hands of the issue.”

Executive Director of Master Builders Tasmania Michael Kerschbaum said much, if not all customer capital contribution for the development of infrastructure has been pushed back on developers by Aurora.

“Effectively this cost is saddled on consumers who are forced to pay the additional charges when they purchase their block to build their dream home,” Mr Kerschbaum said.

“More often than not, these are first home buyers who simply cannot afford to pay these extra charges.

“To ask for capital contributions from a developer and then charge them an ongoing fee for use of that service is nonsensical.

“This policy is discriminatory against future generations of Tasmanians who will be forced to pay more for new developments and land which have historically been seen as a greater good through a broader community contribution.”

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