Value sharing is a funding model that seeks to better align the costs and benefits of projects. Where infrastructure funded by taxpayers provides a windfall gain to private beneficiaries, value sharing allows some of the benefit to be recovered by government and directed toward the cost of the infrastructure.
The State Infrastructure Plan establishes the government's approach to implementing value sharing to support the delivery of state infrastructure in Queensland. Enhancing the state’s ability to fund and finance infrastructure would allow more public projects to be developed and developed sooner than might otherwise occur.
Value sharing is not a new concept in Queensland and is already utilised by the state and local governments to deliver infrastructure and urban improvements. Some examples include:
- infrastructure agreements negotiated between proponents and the state or local governments
- user charges such as tolls for the use of certain roads or utility networks
- the sale or lease of property rights associated with new infrastructure
- special rates applied to benefitted areas to fund local streetscape improvements
- infrastructure charges and value uplift charges to fund provision of trunk infrastructure and sub-regional infrastructure upgrades in Priority Development Areas.
'Exploring value sharing in Queensland' symposium
Alternative and innovative funding options to deliver state infrastructure were discussed at the 'Exploring value sharing in Queensland' symposium held in 2016.
The symposium engaged stakeholders in a dialogue that explored the benefits of alternative and innovative funding models, including value sharing and looked at local, national and global case studies.
Watch the presentations
Symposium presentations were recorded and can be watched by clicking on the link below.
The following presentations are available for download:
- Value sharing: background and context ( 3.1 MB)
– Darrin Grimsey, Partner, Infrastructure Advisory, Ernst & Young
- Value Capture Roadmap ( 4.7 MB)
– Joe Langley, Technical Director, Infrastructure Advisory, AECOM
- UK City Deals and options for Queensland ( 315 KB)
– Said Hirsh, Director, KPMG
- Case studies from New South Wales and Western Australia ( 28.5 MB)
– Dr James McIntosh, Principal, LUTI Consulting
- Finance sector perspective ( 13.7 MB)
– John Pickhaver, Executive Director and Co-head Infrastructure, Utilities and Renewables, ANZ, Macquarie Capital
- Super fund perspective ( 1.6 MB)
– Zak May, Director of Policy, Industry Super Australia
- Outcomes of Ernst & Young research paper for Queensland ( 2.8 MB)
– Darrin Grimsey, Partner, and Mark White, Partner, Infrastructure Advisory, Ernst & Young
To help inform discussion at the symposium, Ernst & Young was commissioned to undertake research which provides an overview of value sharing as well as the complexity of funding and financing and overall governance systems. The research also addresses value sharing mechanisms used nationally and internationally.
Download the research paper ( 505 KB)