Melbourne Hosts West Economic Development Summit

Australian Treasury

Good evening, everyone,

I begin by acknowledging the Wurundjeri Woi Wurrung peoples of the Kulin Nation - the Traditional Owners of the lands we're meeting on today - and pay my respects to Elders past and present.

Thank you to Professor Peter Dawkins AO, Chair of WoMEDA, for being here tonight and for his leadership and vision.

I acknowledge our local government representatives from Brimbank, Wyndham, Melton, Hobsons Bay, Maribyrnong and beyond. The representatives from Victoria University, Western Health and Greater Western Water - 3 of the West's great anchor institutions. And the business, community and industry leaders who make this region tick.

Thank you all for being here and for your commitment to shaping a stronger, fairer, more connected West.

Melbourne's west is already one of Australia's great growth stories.

By 2050, almost 1.8 million people will call this region home - nearly double today's population.

That's larger than Adelaide. Bigger than the entire state of South Australia at the last Census.

This region has all the ingredients to be the economic engine of Victoria, and Australia.

Two major airports connecting us to the world. The Port of Melbourne and vital freight corridors. Strong industrial and logistics precincts. A young, multicultural and increasingly skilled workforce - one of the youngest and most diverse in the country.

And Victoria University - a powerhouse of learning, innovation and industry partnership.

As WoMEDA's Western Growth paper puts it: 'The West has all the ingredients for a booming economy - if we grasp the opportunity.'

To grasp this opportunity, the West has got to be connected. Physically, economically, socially. Big growth needs to be matched with big investment. And you've got a federal government in Canberra which gets that.

Earlier this year we announced an additional $2 billion towards transforming Sunshine Station, as part of our commitment to build the Melbourne Airport Rail, greenlighting the electrification of the Melton train line.

This is on top of our existing $5 billion to build the rail line to Tullamarine, taking the overall Commonwealth commitment to $7 billion - helping Sunshine emerge as Melbourne's 'second CBD'.

We're investing $1.2 billion for a Suburban Road Blitz; a new package of works to increase capacity and improve efficiency in growth areas surrounding Melbourne - a joint commitment by us and the Allan government, which includes upgrades to the Calder Freeway and Wyndham Ring Road.

Urgent Care Clinics across Melton, Werribee, Sunshine and Maribyrnong.

The new Melton Hospital, Melton TAFE and Western Business Accelerator.

Big, gutsy investments that will help continue to shape this incredible part of Melbourne.

And I'm proud to say that the Albanese government has the boldest housing agenda since the post‑war period.

A $43 billion national housing plan with 3 simple goals: building more homes, backing more first home buyers and better supporting renters. And we're having big impacts - enabling communities to love where they live.

In just over 3 years, we've helped more than 190,000 Australians into home ownership. In this region, more than 10,000 people in Melbourne's West are paying off their own mortgage, not someone else's because of the backing of the Albanese government and our 5 per cent deposit program.

And there will be many more to come, as that fantastic program is now open to every first home buyer in Melbourne's West, and across Australia.

For renters, we've supported a million households with an almost 50 per cent increase in Commonwealth Rent Assistance, including more than 50,000 here in the West.

And every renter in Australia is getting better rental standards because our Prime Minister asked premiers to work together to make it happen. And they have.

We're doing something the Commonwealth government hasn't done at scale in decades - we're rolling up our sleeves and building houses like we used to - which are becoming homes for a thriving, connected community.

Fifty-five thousand new social and affordable homes over 5 years.

That includes almost 2,000 right here that are already in planning and construction - with more to come.

Would you believe that the previous government did not build a single social or affordable home in Melbourne's West in their entire almost‑decade in office? I guess that's what happens when you're so checked out of housing, you don't even have a housing minister.

Our Prime Minister is also pushing to get the federation working better on housing.

One of the reasons our nation has such long‑running housing issues is because responsibility is shared across 3 levels of government. The PM has led National Cabinet to set an aspirational target to build 1.2 million homes over 5 years.

This target is galvanising huge change around the country on housing systems - and in that, Victoria is our leading state.

The next 3 years will bring a big acceleration of our housing efforts.

We will soon have the largest social and affordable housing construction program since the post‑war era fully underway.

We're also striking deals with states and territories on building 100,000 new homes reserved just for first home buyers. Not for investors. Not for speculators. For young Australians starting their lives.

The upshot? Our government is driving many millions of dollars of housing investment into this vibrant part of Melbourne. We're building on the West's strengths: its people, its diversity, its location, its potential.

But here's what we need to talk about.

Our state government tells us that Melbourne is going to be the size of London by 2050.

We are deciding, right now, what kind of city we're going to be.

Will we be a city that's functional, that's liveable, humming with life and enterprise, where all Victorians can build a good life?

We will - but only if our whole city works together to tackle our states' housing challenge.

The structure of our cities - where people live, how far they travel, and what services are close to them - shapes who gets access to the incredible opportunities of life in our great city, and who is shut out.

In Australia, decades of NIMBY‑driven planning decisions, have created cities that are increasingly segregated by income.

Melbourne's inner and middle suburbs, where jobs, services and transport are concentrated, have become unaffordable for many.

Meanwhile, Victorians on more moderate incomes are pushed further to the fringe, where housing may be cheaper. Not just in the west, but in the outer north, and the outer southeast too.

But it comes at a cost.

Urban sprawl is a quiet driver of inequality. We can choose to build more inequality into Melbourne, or we can choose to create a modern democratic city, where everyone gets a fair go.

We are making that choice, right now.

When cities spread only outward, and not upward as well, the costs can fall hardest on those least able to bear them.

Infrastructure - roads, public transport, schools, hospitals - becomes more expensive to provide and maintain, which in turn strains public budgets and limits investment in essential services.

Those living on the fringe face higher transport costs, lower job access, and poor public transport connections, while those closer in benefit from proximity, convenience and services that have had decades to get delivery right.

That's why increasing density in our middle‑ring suburbs isn't just a question of planning or aesthetics - it's a question of fairness.

These areas already have the infrastructure, public transport and services to support more people. They have the potential to be destinations and job precincts - so a city commute isn't even needed.

But restrictive zoning and local opposition have kept them artificially low‑density.

Building up in established suburbs, rather than endlessly building out, is one of the most effective ways to tackle the housing crisis and permanently reduce inequality.

Because for too long, Melbourne's west has carried a huge share of our city's growth.

Over the past 30 years, Melton has grown by 433 per cent. Wyndham by 316 per cent. And there are similar numbers in our outer north and outer southeastern suburbs too.

While inner suburban areas such as Boroondara and Bayside have grown at just 24 and 28 per cent respectively.

There's obviously a difference between what can be built on a greenfield site versus an existing suburb - you would expect Melton to grow faster. But the difference shouldn't be that stark.

It's not a fair housing strategy. And it's not the pathway to an equal, liveable Melbourne for all.

Think about what it means for some of the families in these communities.

Mums and dads spending 2, 3 hours a day in the car. Missing bedtime stories, weekend sport and time to connect and give back to the community because they're stuck on the freeway.

That's the lived reality when one part of Melbourne shoulders a disproportionate share of the housing challenges that our whole city is responsible for.

Here's how this happens:

When councils around Melbourne knock back townhouse or apartment developments near train stations, another Victorian family can't afford to live close to their jobs.

When wealthy suburbs fight medium‑density housing, that pressure lands in Melton. When one council says 'not in my backyard' - another council must step up and take the load.

Asking the rest of Melbourne to accept more density does not mean the end of the great Australian backyard.

Greenfields developments will and must continue - it's what many Victorians aspire to. And it's often the most feasible housing for industry to build at affordable prices. But we want Australians to have choice and control and pick what's right for them.

The West has shown extraordinary leadership on housing, and commitment to building a great Melbourne. You are building up, you are building out, and you are absorbing a huge share of new housing for our growing city. And you are doing it while making the West a fantastic place to live.

Councils here have leaned into growth because they understand what's at stake.

They've said yes to more homes near jobs and transport. They understand that good planning isn't about stopping change - it's about shaping it.

The West is doing its bit - in fact, it is doing more than its bit.

I want to acknowledge that leadership - councils like Wyndham, Melton, Maribyrnong, Brimbank and Hobsons Bay who have done the heavy lifting. And indeed, the many pro‑housing councils around the state.

But we need the whole of our great city to step up, more and faster.

Some of the most liveable parts of our city, with established schools and roads and childcare centres that have been delivering first class services for decades, are also the least dense.

That's not fair.

We can't leave all the hard work up to our newer suburbs. Growing a great Melbourne is something we must do together.

Not in 30 years. Not when it's convenient. Now.

My life in politics has had a lot to do with housing - when I was Mayor of Greater Dandenong, housing approvals in our city almost doubled.

But when I was first elected to parliament, a couple of times I supported residents in opposing housing projects they didn't want near their homes.

Most MPs - at some point - have done the same. But I wouldn't do it again.

My electorate needs more density. We all need to do our fair share. And I won't stand in the path of more housing, where it's really needed.

My home suburb of Oakleigh is slated for significantly more housing. I support it.

Because I want my children to have fair housing opportunities.

And I want to live fair city.

Where access to Melbourne's incredible liveability and quality of life - in a growing city - isn't just reserved for a lucky few.

But there are changes we need to make to our housing system for this to become a reality. One is very practical: it is simply too hard to build a house in Australia today. Why? Because for 3 decades, 3 levels of government have added new breaks and barriers to building more homes. That can't continue, and we're working it change it.

We're pausing changes to the National Construction Code.

We're streamlining environmental approvals.

And we're funding more enabling infrastructure. All to cut the cost and time it takes to get homes approved and make more of the housing we need feasible to build.

We're seeing real progress. When we came into office, construction costs were increasing at 17 per cent a year - their highest rate in half a century. That's now down to nearly 1 per cent a year.

And the Allan government's Housing Statement tackles these challenges head‑on too.

As of today, Victoria is forecast to meet 98 per cent of their share of the 1.2 million homes target.

Victoria deserves huge credit for that hard work, and in particular the work they are doing on planning.

Because if we want our country to build more homes, more quickly, the most powerful long‑term lever of all is ambitious planning reform at the state level.

When we look around the world at the cities that have turned around their housing challenges - the reform they all have in common is gutsy planning reform.

The politics is of planning is really tough. So, the state governments which are showing that leadership - not just here in Victoria, but also in NSW, in SA and in other states - they need our support.

They are making difficult decisions for the good of our cities, and we need to back them in, loud and proud.

Because a balanced city - one that grows both up and out, fairly across our state - is how we'll meet the housing challenge and keep Melbourne liveable for generations to come.

Friends, what Melbourne will look and feel like in 25 years time has everything to do with the choices made by people in this room.

This region has already shown what's possible when governments, councils, universities and industry work together.

My hat is well and truly off to the work of the Andrews and Allan governments who have delivered an incredible number of new schools, hospitals, roads and transport infrastructure.

And its why the great partnership between our governments is helping deliver the infrastructure, housing and skills needed to better plan our suburbs and keep the West thriving.

As WoMEDA puts it: 'The West of Melbourne is a beacon of jobs, opportunity, liveability and sustainable growth.'

When the West thrives, Victoria thrives. And when Victoria thrives, Australia thrives.

So, let's keep working together - across all levels of government, business and community - to continue to unlock Melbourne's economic engine.

Thank you.

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