Infrastructure Development Fund

The State Government has established an $80 million fund to unlock a new pipeline of apartment development in key urban precincts and key worker accommodation and community housing regional areas.
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Restrictions on the capacity of existing water, wastewater and electricity infrastructure, and the costs and complexity for landowners to connect can limit urban infill development and the provision of new housing in regional areas. This can result in well-located development sites remaining vacant and housing opportunities going unrealised. 

The purpose of the Infrastructure Development Fund is to assist with the cost of resolving infrastructure constraints that impact the supply of medium to high density housing projects in priority infill locations within metropolitan Perth; and key worker accommodation and community housing in the regions.

In the metropolitan area, new medium to high density housing development will promote urban consolidation, housing diversity and activation around priority infill locations, such as METRONET station precincts. 

In the regions, high levels of employment and low availability of housing can impede ongoing economic development.

About the Infrastructure Development Fund

The $80 million Infrastructure Development Fund has been allocated equally between metropolitan and regional projects ($40 million each).

The Infrastructure Development Fund consists of three funding programs:

Targeted Apartment Rebate

For new apartment developments, a targeted rebate of up to $10,000 per multiple dwelling is available to assist with water, wastewater and electricity infrastructure connection and contribution costs incurred with the Water Corporation or Western Power. Funds will be paid directly to the infrastructure provider.

The rebate is available to apartment (multiple dwelling) projects within:

  • the central sub-region of the Perth metropolitan area,
  • 1km of all train stations including METRONET Station Precincts
  • 1km of strategic, secondary and district activity centres as defined by State Planning Policy 4.2 – Activity Centres
  • 1km of the Bunbury CBD
  • Housing Diversity Pipeline sites.

See map for details.

Developments receiving funding under the program will be required to commence within two years of approval and complete construction within four years. An additional 12-month discretionary extension is available to account for unforeseen construction delays. 

Targeted Apartment Rebate Guidelines for Applicants

Unlocking Infill Precincts

The second stream of the Infrastructure Development Fund has been designed as an infrastructure investment program to address constraints in the water, wastewater and electricity network at a precinct scale, to facilitate medium to high density development within:

  • the central sub-region of the Perth metropolitan area,
  • 1km of all train stations including METRONET Station Precincts
  • 1km of strategic, secondary and district activity centres as defined by State Planning Policy 4.2 – Activity Centres
  • 1km of the Bunbury CBD
  • Housing Diversity Pipeline sites. 

See map for details.

This allows for larger, more complex infrastructure bottlenecks to be identified and addressed, to provide the additional service capacity needed to unlock development opportunities. Without Government intervention or assistance, in some cases these development opportunities are unlikely to be realised or feasible for a single developer to coordinate and/or fund.

Applications for this funding stream will be based on evaluation of a business case, including consideration of co-contribution opportunities with industry. Streams 1 and 2 of the Fund will also contribute to increasing social housing stock by supporting the delivery of mixed-use developments, in partnership with industry and the community housing sector, on Housing Diversity Pipeline sites.

Unlocking Infill Precincts Guidelines for Applicants

Unlocking Regional Accommodation Opportunities

The third funding stream has been designed as an infrastructure investment program to address infrastructure constraints in the water, wastewater and electricity network at a precinct or strategic site scale impacting the delivery of accommodation for key workers and community housing in regional areas.

Applications under this funding stream will be based on evaluation of a business case, including consideration of co-contribution opportunities. 

Mining/resource worker accommodation and proposals outside of existing centres, townsites or communities are ineligible for funding.

Unlocking Regional Accommodation Opportunities Guidelines for Applicants

How to apply

Applications are to be made through SmartyGrants with the relevant Guidelines.

Applicants are invited to contact the Infrastructure Development Fund team via infrastructurefund@dplh.wa.gov.au or 6551 8002 to discuss an application.

Applications will remain open until 6 September 2024 unless the funding allocation is exhausted earlier.

Assessment of applications for the Unlocking Infill Precincts and Unlocking Regional Accommodation Opportunities streams will be considered in rounds, which will occur quarterly subject to funding availability and applications received. 

The closing date for rounds are:

Round NumberApplications closing date
Round 27 September 2023 (Closed)
Round 37 December 2023 (Closed)
Round 47 March 2024 (Closed)
Round 57 June 2024 (note, first round for Community Housing projects)
Round 66 September 2024

Frequently asked questions

How long is funding available for?

The $80 million Infrastructure Development Fund has been allocated equally between metropolitan and regional projects ($40 million each). Applications are open for 18 months, until 6 September 2024 unless the funding allocation is exhausted earlier

Stream 1 projects

Stream 1 – When should I apply for the Targeted Apartment Rebate?  

 The Targeted Apartment Rebate is available for projects where development approval has been received but development has not substantially commenced.

If the development approval has less than 12 months to expiry, applicants will be required to demonstrate that there is a reasonable prospect they are able to substantially commence the development within the remaining time. 

Stream 1 – Is the Targeted Apartment Rebate for Apartments only?

The Targeted Apartment Rebate is available only for multiple dwellings, which are more commonly known as apartments. Other land uses and dwelling types may form part of the development (up to 25% net lettable area). However where apartments make up less than 75% of the net lettable area, funding may be provided at a pro-rata rate.

Stream 1 – Can Western Power and Water Corporation invoices be reimbursed by the Fund if already paid by the developer?

No. The Fund will pay eligible invoices for approved projects direct to Western Power and/or Water Corporation, on an applicant’s behalf. Funding cannot be transferred to the applicant/developer for invoices already paid.

Stream 1 – How are projects with multiple stages treated?

Where projects are staged, and stages are either under construction or complete, later project stages (not already commenced) may be considered for funding where it can be demonstrated:

  • construction for the relevant project is occurring on separate timeframes
  • the development is physically separate from earlier stages such as on separate lots or have different and/or separate street frontages
  • the development does not share common facilities with earlier stages of the development such as basements, building access or other common infrastructure
  • there are other identified ways of determining that the project is a separate stage, such as separate finance arrangements or builder.

The Department of Planning, Lands and Heritage retains the discretion to determine if an application is eligible for funding.

Stream 1 and 2 – How are the boundaries of a strategic, secondary and district centres determined?

From March 2024, the list of eligible locations for Stream 1 and 2 has been expanded to include project locations within 1km of a strategic, secondary or district activity centre, as defined by State Planning Policy 4.2 – Activity Centres.

Where the activity centre has been defined by a structure plan (or equivalent) or is zoned by the Metropolitan Region Scheme as ‘Central City area’ zone, the 1km eligible area is measured from the external perimeter.

Where the boundary of an activity centre has not been designated through the above processes, the 1km eligible area is measured from the activity centre point as designated in the Perth and Peel @3.5million sub-regional planning frameworks.

If you have any queries regarding the location of your project please contact us.

Stream 2 projects

Stream 2 - Are projects limited to those that will unlock apartment development only?

The Unlocking Infill Precincts funding stream is not limited to projects that will facilitate apartment (multiple dwelling) development only.

To be eligible for consideration a project should relate to works and/or upgrades to water, wastewater and electricity supply infrastructure that are required to facilitate medium to high density infill development within a precinct. Generally, this would relate to areas zoned for development of a minimum of R30 and above.  

 Projects must also comply with the other eligibility criteria as outlined within the Guidelines.  

Stream 2 - Can a proposal be submitted to facilitate development of a single-site only?

For a project to be considered eligible for consideration under the Unlocking Infill Precincts funding stream, the application should relate to a precinct where the identified infrastructure constraint(s) represent a barrier to the delivery of planned medium to high density residential urban infill, and not an individual site only.

Applications should relate to precincts that represent a logical area when taking into consideration factors including:

  • the relevant planning framework 
  • the nature of the infrastructure constraint 
  • the extent of works required to provide for the expected development of the precinct 
  • the capacity and timing for the works to be undertaken 
  • the capacity for development that will be provided by the proposed works
  • advice of the relevant local government and servicing authorities.  

NB. The above list is not exhaustive, and other factors may also be relevant

Streams 2 and 3 - Is there a standard template for the required business case to make an application?

There is no template for the business case that is to accompany applications under the Unlocking Infill Precincts / Unlocking Regional Accommodation Opportunities funding streams. A business case is required to address the application requirements and eligibility criteria as outlined within the relevant Guidelines, and should be proportional in the level of detail to the scale of the application. 

As a guide, business case must demonstrate:

  • there is a need for housing in the locality, what is the unmet demand or opportunity that has been identified,
  • there is an infrastructure constraint impacting the ability for dwellings to be delivered,
  • a genuine intent to deliver dwellings on the site(s) following installation of the required infrastructure (ie who is constructing the dwellings, Is it staged?)
  • The delivery model for the proposed dwellings. Who is involved in their construction and management, are they being built for purchase or lease, has funding been secured to commence and complete the project if the funding proposal is supported,
  • The timing for delivery of dwellings on the lots unlocked by the infrastructure,
  • What are the anticipated benefits to the community if the project is supported,
  • Accurate costs for the proposed infrastructure provided by the relevant service authorities or by a quantity surveyor.
  • What other options have been considered.

Where insufficient information is provided, the project team will liaise with applicants to request additional information or clarification.

Streams 2 and 3 - Are costs associated with servicing of lots as part of a subdivision approval eligible for funding?

The Unlocking Infill Precincts / Unlocking Regional Accommodation Opportunities funding streams are not intended to provide funding for costs generally associated with greenfield subdivision/development projects, such as provision of water supply, sewerage service or electricity distribution system as part of implementation of a subdivision approval.

These funding streams are seeking to address infrastructure constraints that are representing a significant barrier to progressing development in an area with respect to the water, wastewater and electricity supply infrastructure.  

Stream 2 and 3 – What accuracy of infrastructure costings is required? 

Applications must demonstrate a high degree of certainty of the costs (and breakdown) of the required infrastructure works. The estimate of funds being sought should be provided by the service provider, or alternatively an appropriately qualified cost estimator or quantity surveyor.

The level of certainty should be proportional to the scale of the proposal, and applications should identify the level of certainty of the costing they are providing in their application as well as how any shortfall in funding is proposed to be addressed, in the event that costs exceed those estimated.

Stream 3 – What types of housing projects are eligible for consideration for funding?

Applications should address how the worker or community housing will be delivered, with the funding stream seeking to ensure the future delivery of the housing itself and not vacant land.  

Specifically, the funding stream eligibility requirements include the demonstration that the infrastructure works will facilitate the timely delivery (following completion of the infrastructure works the subject of the application) of:

  • affordable purchase and/or rental accommodation options located within a reasonable vicinity to employment and service locations to enable access their place of employment and within a reasonable vicinity to amenity and services provided by the town (ie. consistent with the current development front for the town); and
  • for key workers, a range of housing types, where appropriate, to respond to the expected housing needs (as justified by the proposal), and providing – at a minimum – a bedroom, living space, kitchen and bathroom facilities and be capable of being used for permanent occupancy.
  • for community housing, a range of housing types can be considered which respond to the housing needs in the region (As justified by the application).

Contact us for more information

If you have any queries, please contact the Infrastructure Development Fund team at the Department of Planning, Lands and Heritage.

Phone enquiries: (08) 6551 8002 
Email enquiries: infrastructurefund@dplh.wa.gov.au