WA taxpayers could save $30 billion over the next three decades if new housing is confined to areas already earmarked for development, a Federal parliamentary inquiry will be told in Perth today.

The City of Fremantle is calling for the “hidden costs” of urban sprawl to be exposed, claiming the State Government spends $150,000 on infrastructure for every new lot on Perth’s fringe, compared with $55,000 for infill development.

“By extension, WA taxpayers are paying $94.5 million for every 1000 homes built on the fringe of Perth,” Fremantle strategic planning director Paul Trotman said.

“A return to a 60 per cent density target would save WA $23 billion to 2050 — from the current 47 per cent, the lowest in Australia — which is enough for nine new Fiona Stanley Hospitals.”

A target of 100 per cent would save the State $30 billion by 2050, Fremantle says in its submission to the committee looking into the development of cities.

WA Planning Department director-general Gail McGowan told the inquiry recent Commonwealth infrastructure funding for WA “has not reflected the extra demand for services” driven by the growth in its population, which jumped by about 410,000 between 2007 and 2014.

“WA’s share of Commonwealth infrastructure funding has been low, despite additional infrastructure funding provided to partially compensate for the unreasonably low share of GST returned to WA over recent years,” Ms McGowan said.

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She said that while Perth’s development had been characterised by a long period of suburban expansion, the State Government had adopted a policy of urban consolidation.

House standing committee on infrastructure, transport and cities chairman John Alexander said it was focused on uncovering the barriers to more compact urban planning.

He conceded low-density development at the fringes of existing cities continued around the country, despite the benefits of higher density being “well- recognised by governments at all levels”. “A business-as-usual approach will not resolve significant issues such as traffic congestion,” Mr Alexander said.