More infrastructure funds needed: report

THE federal government must establish a department dedicated to the infrastructure needs of Australian cities to address a $500 billion backlog in urban development, building groups say.

The suggestion is among a raft of ideas in a report - New Deal for Urban Australia - outlining the key infrastructure challenges as Australia deals with a growing population.

Compiled by the Urban Coalition, a collective of key industry figures, the report calls for greater"leadership and investment from the government.

It also recommends the establishment of an Urban Infrastructure Fund to meet the cost of development.

"We need to access both national and international savings and direct them to fund ... infrastructure - such as public interchanges, removing pinch points on local road and freight networks," Property Council Chief Executive Peter Verwer said.

Julie Katz, national president of the Urban Development Institute of Australia, said inadequate funding was causing congestion in cities.

"The longer distances between home and work, the greater the difficulties and congestion in our cities," she said.

Executive Officer of The National Growth Areas Alliance, Ruth Spielman, said more than 80 per cent of Australia's population lived in cities and people in fast-growing outer suburbs want to live closer to basic services.

"People need jobs and services closer to home and improved transport options," she said.

She said the proposed changes would financially realistic for the government to put into action.

"There's no doubt that the money is there, and we need collaboration among the spheres of government," she said.

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