Rethinking funding models for infrastructure - the Infrastructure Finance Reform Issues Paper

Governments must incentivise private sector investment in infrastructure. New models for repayment need to be examined to maximise the use of governments' funding sources.

Australia's infrastructure needs cannot be met with government finance alone, and how to fund it in the future is one of the key issues facing governments at all levels. The sources of repayment of private sector investment are traditionally general taxation revenue or direct user charges, but new models are needed.

A new report from the Infrastructure Finance Working Group sets out some options, but for them to help fund Australia's large and growing infrastructure deficit will require some serious reforms.