Infrastructure spending boosted across Australia
Last week’s Federal Budget included two big wins for the Construction industry.
Firstly, the announcement of an additional $15.2 billion for infrastructure projects across the country. The other win was the extension of the asset write-off scheme.
Big winners in the infrastructure spend include the Great Western Highway upgrade from Katoomba to Lithgow ($2 billion); Melbourne’s new Intermodal Terminal (for the transfer of freight from one form of transport to another, such as road to rail or sea to road) and $400 million to further works on the Bruce Highway. Other projects include WA’s Metronet Hamilton Street/Wharf Street upgrade, SA’s Truro Bypass,and NT’s Bass Highway Safety and Freight Efficiency upgrades, as well at the National Network Highway Upgrades.
This spending is expected to create about 100,000 jobs over the duration of all the projects.
The asset write-off scheme has been extended to 30 June 2023. Under the scheme, businesses can write-off the full value of any eligible asset purchased and as a result, investment in machinery and equipment increased the fastest in the December 2020 quarter, over the last 7 years, as businesses utilised these incentives. The tax rate for small and medium companies has also been reduced from 1 July 2021, down 5% from 30% to 25%.
See Inside Construction for further information