NBN slug to push up land prices

By JOHN VAN KLAVEREN

LAND buyers throughout Geelong face extra costs of up to $1900 a lot under a new National Broadband Network (NBN) greenfields rollout plan.
Federal Govenment has yet to finalise the plan but NBN new developments manager Julian Nachmias has written to developers warning of the impending charges.
The “network deployment” charges will cost an extra $400 per multi-dwelling unit and $600 for single-dwelling units for all new developments approved by NBN Co after 1 March.
Developers are also fighting a proposed “backhaul” fee to connect their estates to the NBN, which could add more than $1000 per lot in additional connection expenses.
Most sales of new lots in the region already include an NBN charge of around $800 to connect fibre to the home.
Geelong has thousands of lots for sale in estates including Armstrong Creek, Curlewis, North Geelong, Highton, Marshall, Oakdene, Portarlington, Leopold and Drysdale.
More estates are planned for Lara, Lovely Banks and on the Bellarine Peninsula to cope with an expected 70,000 new residents by 2031.
Mr Nachmias told developers the NBN was “beginning to operationalise some of the key policy changes related to cost recovery”.
“The government is introducing infrastructure charging to promote fairer and more effective competition, thereby creating greater efficiency, innovation and choice in the provision of telecommunications infrastructure in new developments in the long term.”
Urban Development Institute of Australia Victorian executive director Danni Addison said strong lobbying had succeeded in convincing the Government to delay parts of the new plan.
Ms Addison said developers’ backhaul contribution had been delayed to 1 July.
The backhaul cost would be up to 50 per cent of the first $1000 per lot and 100 per cent of costs in excess of $1000 per lot where NBN Co does not have a backhaul connection and must lay a new cable.
Implementation of a $300 end-user charge for new connections has also been delayed to 1 July.
“The new backhaul charges were originally due to take effect from 1 March and their delay is a major win for the development industry, allowing developers time to prepare,” Ms Addison said.
She said lobbying had also won concessions for developers, requiring NBN Co to provide early planning information, indicative costs and reduce backhaul costs through co-development with other utilities.
“UDIA continues to oppose the introduction of the charges and will continue to lobby the Federal Government on these issues.”