Tuesday 11 May – Iron Capital Group welcomes the Federal Government’s 2021-22 Budget prioritisation of infrastructure and jobs, with $10 billion being allocated to the building and fast-tracking of road and rail projects across Australia.
Announced within a backdrop of strong consumer sentiment (11-year highs), favourable business conditions and positive jobs numbers, this Budget is being sold as the next stage of the Australia’s economic recovery plan as the nation recovers from the COVID-19 pandemic.
Importantly, the Morrison Government has pitched infrastructure investment as a means for more jobs, more local procurement and greater opportunities for regional Australia.
The $10 billion funding follows last year’s pledge to spend $110 billion on infrastructure over the next decade.
The early drop of the budget initiative has been well-received by industry. Property Council of Australia Chief Executive Ken Morrison, for example, believes the commitments represented a welcome alignment with the Infrastructure Australia’s priority list.
“More money for infrastructure and investment in proven projects is exactly what we need, so this announcement is very welcome,” Mr Morrison said. “Fast-tracking investment in infrastructure is critical to supercharging Australia’s economic recovery over the next decade.”
According to the Government, the Australian economy will be boosted by a ten-year infrastructure pipeline, with new funding for major projects, including:
- $2 billion of initial investment for a new Melbourne Intermodal Terminal;
- $2.03 billion for Great Western Highway Upgrade – Katoomba to Lithgow – Construction of East and West Sections in New South Wales;
- $400 million for Inland Freight Route (Mungindi to Charters Towers) Upgrades in Queensland;
- $161.6 million for the Truro Bypass in South Australia; and
- $160 million for Agricultural Supply Chain Improvements – Package 1 in Western Australia.
These investments are the centrepiece of a National Economic Recovery Plan, which has an emphasis on creating jobs and boosting business investment.
New South Wales –
- $2.03 billion for the Great Western Highway Upgrade – Katoomba to Lithgow – Construction of East and West Sections;
- $400 million for the Princes Highway Corridor – Jervis Bay Road to Sussex Inlet Road – Stage 1;
- $240 million for the Mount Ousley Interchange;
- $100 million for the Princes Highway Corridor – Jervis Bay Road Intersection;
- $87.5 million for M5 Motorway – Moorebank Avenue-Hume Highway Intersection Upgrade;
- $52.8 million for Manns Road – Intersection Upgrades at Narara Creek Road and Stockyard Place; and
- $48 million for Pacific Highway – Harrington Road Intersection Upgrade, Coopernook.
- $400 million for the Inland Freight Route (Mungindi to Charters Towers) Upgrades;
- An additional $400 million for Bruce Highway Upgrades;
- $240 million for the Cairns Western Arterial Road Duplication;
- $178.1 million for the Gold Coast Rail Line Capacity Improvement (Kuraby to Beenleigh) – Preconstruction;
- $160 million for the Mooloolah River Interchange Upgrade (Packages 1 and 2);
- An additional $126.6 million for Gold Coast Light Rail – Stage 3;
- $35.3 million for the Maryborough-Hervey Bay Road and Pialba-Burrum Heads Road Intersection Upgrade; and
- $10 million for the Caboolture – Bribie Island Road (Hickey Road-King John Creek) Upgrade.
South Australia –
- $2.6 billion allocation of funding for the North-South Corridor – Darlington to Anzac Highway;
- $161.6 million for the Truro Bypass;
- $148 million for the Augusta Highway Duplication Stage 2;
- An additional $64 million for the Strzelecki Track Upgrade – Sealing;
- An additional $60 million for the Gawler Rail Line Electrification;
- $48 million for the Heysen Tunnel Refit and Upgrade – Stage 2;
- An additional $27.6 million for the Overpass at Port Wakefield and Township Duplication;
- $32 million for the Kangaroo Island Road Safety and Bushfire Resilience Package, and
- $22.5 million for the Marion Road and Sir Donald Bradman Drive Intersection Upgrade.
- $2 billion for initial investment in a new Melbourne Intermodal Terminal;
- An additional $307 million for the Pakenham Roads Upgrade;
- An additional $203.4 million for the Monash Roads Upgrade;
- An additional $20 million for the Green Triangle and $15 million for the Melbourne to Mildura Roads of Strategic Importance corridors;
- An additional $56.8 million for the Hall Road Upgrade;
- An additional $30.4 million for the Western Port Highway Upgrade;
- $17.5 million for the Dairy Supply Chain Road Upgrades; and
- $10 million for the Mallacoota-Genoa Road Upgrade.
Western Australia –
- $347.5 million for METRONET: Hamilton Street-Wharf Street Grade Separations and Elevation of Associated Stations and an enhanced METRONET Byford Rail Extension project;
- $200 million for the Great Eastern Highway Upgrades – Coates Gully, Walgoolan to Southern Cross and Ghooli to Benari;
- $160 million for the WA Agricultural Supply Chain Improvements – Package 1;
- $112.5 million for the Reid Highway – Altone Road and Daviot Road-Drumpellier Drive – Grade-separated intersections;
- $85 million for the Perth Airport Precinct – Northern Access;
- $64 million for the Toodyay Road Upgrade – Dryandra to Toodyay;
- $55 million for the Mandurah Estuary Bridge Duplication, and
- $31.5 million towards the METRONET High Capacity Signalling project.
This infrastructure-focussed budget gives some necessary certainty to our sector for the years ahead, and firms opportunity for all those in it.
Iron Capital Group stands ready to provide support with its tailored used equipment solutions and expert understanding that every construction project is different, and every customer has unique needs.