In a new deal between the premiers and prime minister Kevin Rudd, the states will have to produce 30 year plans for their capital cities if they are to qualify for federal infrastructure funding.

Work will begin in 2010, with each capital city submitting an initial report during 2011.

States will be required to provide 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.

The plans will be publically available, integrated (for example, land use, infrastructure and transport) and set out priorities for investment.

A communiqué issued by the Council of Australian Governments (COAG), said national criteria for the planning of capital cities will provide a platform to “re-shape” Australian cities.

“The criteria will ensure our cities have strong, transparent and long-term plans in place to manage population and economic growth; plans which will address climate change, improve housing affordability and tackle urban congestion.”

Rudd said nationally consistent planning principles and procedures would give the Commonwealth “continued confidence” when investing in state infrastructure.

However, the deal struck by state and federal ministers in Brisbane yesterday has already come under fire from the development industry.

While the principles are fine, the industry wants to see federal government put its money where its mouth is.

“It seems that the federal government is moving beyond funding ‘one-off’ transport projects, to a more enduring commitment,” Aaron Gadiel, CEO of the Urban Taskforce, said.

“However, we haven’t yet seen any commitment by the Commonwealth on actual dollars once these new plans are in place by 2012.”

State governments can no longer afford to fund their cities’ entire infrastructure needs and “ongoing” and “sustained” federal assistance is essential, he said.

The capital cities plan is a positive step for sustainability, according to the Green Building Council of Australia (GBCA). The Council is currently working on a precincts tool that it hopes will support the initiative.

The Property Council of Australia welcomed the agreement, saying it was a “turning point” for urban communities.

“[The] announcement replaces a haphazard approach to strategic planning that resulted in accidental cities with a more rigorous and disciplined model that will rewire and reboot the planning system,” CEO Peter Verwer said.

“COAG has agreed to tie financial carrots and sticks to performance,” he said.

While the Property Council would prefer to see an independent commission audit the strategic planning performance of governments, it said the announcement was a positive step.