State and Territories will have capital city strategic plans by 2012 that meet national criteria for transport, housing, urban development and sustainability.
State and Territory planning systems will be independently assessed by the COAG Reform Council in this major microeconomic reform agreed by Governments at today's COAG meeting.
Capital city strategic plans are needed to lift economic productivity, respond to climate change and ensure the nation is geared up for 35 million people by 2049.
The national criteria will deliver better integrated and longer term - 30 year - infrastructure and land use plans. The criteria require planned, evidence based land release to improve housing affordability, better transport planning to tackle urban congestion, and new urban development to be better linked to transport, jobs and services.
Work will begin in 2010, with an initial report on each jurisdiction's plan to be completed during 2011. A formal intergovernmental agreement will provide details of these arrangements.
From 1 January 2012, the Commonwealth will link future infrastructure funding to States and Territories meeting these criteria. The Commonwealth must have confidence in the integrity of a capital city's strategic planning system if it is to invest in that city.
The Commonwealth also has agreed to contribute to the reforms through its own property, assets, service delivery and approval processes.
The reforms adopted today will secure better outcomes from investments of all governments in Australia's cities and they will strengthen public confidence in planning systems.