Acknowledging social infrastructure's economic role
The health, wellbeing and other community benefits of social infrastructure are well understood. Its significant contribution to Australia's economic growth is less well known and should be appropriately valued.
Social infrastructure provides stable employment, attracts and retains people in communities, catalyses local economies and helps businesses to flourish.
The substantial direct and indirect economic benefits significantly outweigh initial capital costs.71
The economic outcomes delivered by social infrastructure include:
• productivity gains from employment
• education, tourism and export services
• economic wealth created during construction
• attracting investment through innovation and research
• a lesser burden on social services due to health savings and reduced crime.
It is clear the economic contribution of social infrastructure is yet to be appropriately recognised.
To guide future investment and support ongoing prosperity, Australia needs a consistent, national valuation framework that captures, measures and assesses the quadruple-bottom-line value (social, economic, environmental and governance) of social infrastructure. For more information on the quadruple bottom line, see the Sustainability and resilience chapter.
" The economic contribution of social infrastructure is yet to be appropriately recognised. "
Underlying frameworks are also required that value sectors of explicit need, including: social and affordable housing; arts, culture, green, blue and recreational infrastructure; and Australia's significant natural assets.
8.3 Recommendation Support economic development by recognising the value of investment in social infrastructure. Proposed sponsor: Infrastructure Australia Supported by: State and territory infrastructure bodies, Australian Treasury | |||
When this should impact: |
| Where this should impact: |
|
| 8.3.1 Guide better social infrastructure investment by developing a consistent, national valuation framework that captures, measures and assesses the quadruple-bottom-line benefits of social infrastructure. Proposed lead: Infrastructure Australia Supported by: State and territory infrastructure bodies |
| Guide social infrastructure investment by establishing a cross-Jurisdictional, multi-sector panel to lead the collaborative development of an overarching social infrastructure valuation framework. This will strengthen existing approaches and draw on expertise from government, industry, environmental, First Nations and community leaders. Proposed lead: Infrastructure Australia Supported by: State and territory infrastructure bodies |
| Support the effective evaluation of the economic contribution of social infrastructure by developing associated tools, methodology and guidance materials that can be used by infrastructure providers Proposed lead: Infrastructure Australia Supported by: State and territory infrastructure bodies |
| Enhance investment decisions by continuously improving and updating the framework by sharing information and best practice. Support the development of evaluation approaches for specific social infrastructure sectors to fill out the framework. Proposed lead: State and territory infrastructure bodies Supported by: State and territory treasuries, state and territory education departments, state and territory health departments, state and territory housing departments, state and territory justice departments |
| 8.3.2 Support healthy and productive futures for all Australians by establishing a consistent approach to capturing, measuring and assessing the quadruple- bottom-line benefits of social and affordable rental housing. Proposed lead: National Regulatory System for Community Housing, state and territory social housing providers, community housing providers, Department of Social Services, Australian Treasury Supported by: Australian Institute of Health and Welfare, Australian Bureau of Statistics, Infrastructure Australia |
| Assess the quadruple-bottom-line benefits of social and affordable rental housing by building on existing frameworks and developing an agreed, consistent approach to measuring its economic impact. Use the approach to inform and support the national valuation framework. Proposed lead: Department of Social Services, state and territory social housing providers, community housing providers Supported by: State and territory treasury departments, Australian Institute of Health and Welfare, Australian Bureau of Statistics, National Regulatory System for Community Housing |
| Harmonise the collection and availability of data across different government departments and housing sectors by developing a housing and homelessness reporting process and dataset that are comprehensive and consistent. Proposed lead: Department of Social Services, state and territory social housing providers, community housing providers, Australian Treasury Supported by: State and territory treasuries, Australian Institute of Health and Welfare, Australian Bureau of Statistics, National Regulatory System for Community Housing |
| Deliver improved social and affordable rental housing outcomes by adopting the quadruple-bottom-line approach to prioritise investment. Proposed lead: State and territory social housing providers, community housing providers, National Housing Finance and Investment Corporation, Australian Treasury Supported by: Department of Social Services |
| 8.3.3 Drive economic growth and improve social cohesion and liveability by establishing a consistent approach to capturing, measuring and assessing the quadruple-bottom-line benefits of arts, culture, green, blue and recreational infrastructure. Proposed lead: State and territory treasuries Supported by: State and territory arts, cultural, recreational and tourism departments, local governments |
| Improve growth and liveability by assessing the quadruple-bottom-line of arts, culture, green, blue and recreation infrastructure, building on existing frameworks and developing an agreed, consistent approach to measuring its economic impact. Use the approach to inform and support a national valuation framework. Proposed lead: State and territory arts, cultural, recreational and tourism departments, state and territory planning departments Supported by: Local governments, communities |
| Catalyse economic development by using the new framework to collaboratively plan, develop and invest in arts, cultural, green, blue and recreational infrastructure that enhances unique regional identities and brands. Apply this approach when planning new precincts and renewal projects. Update existing plans every five years. Proposed lead: State and territory arts, cultural, recreational and tourism departments, state and territory planning departments, state and territory economic development departments Supported by: Local governments, communities |
| 8.3.4 Support and protect economic growth and the environment by valuing Australia's significant natural assets and their quadruple bottom line benefits. Proposed lead: Department of Agriculture, Water and the Environment Supported by: State and territory environment departments |
| Inform and prioritise investment by developing a framework to assess the quadruple bottom line of significant natural assets, building on existing frameworks and developing an agreed, consistent approach to measuring their economic impact. Use the approach to inform and support a national valuation framework. Proposed lead: State and territory environment departments Supported by: Department of Agriculture, Water and the Environment |
| Inform decision-making by developing an agreed and integrated register of significant natural assets, with a stocktake undertaken by individual levels of government. Proposed lead: State and territory environment departments Supported by: Department of Agriculture, Water and the Environment |
Measuring progress
| Social infrastructure valuation framework Deployment of a valuation framework for social infrastructure | ||
Governance | Target: National | Timeframe: |
|
| Housing dataset A consistent dataset for housing and homelessness | ||
Governance | Target: National | Timeframe: |
|
| Natural assets accounting standard A consistent approach to environmental-economic accounting for natural assets, in line with global standards | ||
Governance | Target: National | Timeframe: |
|
