With the first Turnbull / Morrison budget being handed down in Canberra last night, the news sites and blogs, and social media are alight with comments and opinions!
Of most interest to our White Card Online Express blog readers is the potential stimulus to activity in the construction and infrastructure sectors.
Here’s a bullet point breakdown of some of the key initiatives in the infrastructure sector, as published on the NAB business website:
- The Government continues the $50bn investment in infrastructure that started in 2013-14 and ends in 2019-20.
- Western Sydney airport preparatory works will receive $115.1m over two years from 2016-17 for the Badgerys Creek site. Some $26.2m of this is for concept design of rail facilities. The bulk of remaining funding is for specialist advice and planning, site management and security and minor land acquisitions.
- In Western Australia (WA), $490m has been earmarked for the Forrestfield airport link that connects Perth’s eastern suburbs to the city. This money was announced in April as a measure to maintain WA’s GST share, and is now budgeted.
- The Budget allocates $43.8m over four years to establish the Commonwealth entity called Northern Australia Infrastructure Facility (NAIF), which will administer financing to major projects in northern Australia.
- The Government has committed up to $593.7m over three years from 2017-18 in additional equity to the Australian Rail Track Corporation (ARTC). The equity should assist purchase of land and other preconstruction activities for the Melbourne to Brisbane Inland Rail link. The funding is contingent on an equity funding agreement still to be developed between the Commonwealth and ARTC.
- A National Water infrastructure loan facility of $2bn in concessional loans will go to the states and territories for dams and pipelines over 10 years.
- Reallocation of $1.5bn in funds previously allocated to East-West Link to other Victorian infrastructure projects, including the Western Ring Road ($350m), Murray Basin Rail Project ($220m), rural and regional roads ($345m), urban congestion ($75m) and Melbourne Metro business case ($10m).
- Projects with funding already met from the Infrastructure Investment Program include Perth Freight link ($260m) and Ipswich Motorway ($200m).
- There are savings of $162.7m from uncommitted project contingency, of which the bulk ($150.4m) is achieved in 2019-20.
Here’s a Twitter feed where you can monitor and join the conversation about the Budget reaction:
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