Budget Hub 2023

09/05/23

Federal Budget

OVERVIEW

Earlier this evening, Federal Treasurer Jim Chalmers handed down his second Budget, just under a year after the Albanese Government took office. With a return to surplus – albeit a brief one – ­and a focus on measures to address cost-of-living pressures without adding to inflation stealing the headlines, infrastructure has largely flown under the radar. In short, this is a placeholder Budget with respect to infrastructure – with the details only to be filled in once the Government lands the strategic review of the transport capital program.

As foreshadowed last week, the Federal Government has committed to undertake an independent 90-day review of the Federal Infrastructure Investment Program. This is likely to see reprioritisation of spending, and some projects announced under the previous Government cut, but the pipeline is effectively on ice for the moment. One area of spending on the chopping block in this Budget is in water infrastructure, with savings of $873 million over 11 years.

There are a small number of new infrastructure commitments to note. An additional $200 million over two years will be allocated for planning of land transport projects through the Major Projects Business Case Fund. A renewed focus on urban policy will see $371 million for new community infrastructure programs, while there are minor new investments in housing and water security for remote communities. There is also $84 million for a Net Zero Authority, which will seek to guide emissions reductions across the economy, including in infrastructure.

The focus for energy is on household and business bill relief, with a continuation of the Government’s commitments around transmission and generation. A new Hydrogen Headstart program has attracted headlines with a $2 billion price-tag, but much lies outside the forward estimates and details are thin on the ground.

The Budget also confirms previously announced funding, with $3.4 billion for capital works to support the 2032 Brisbane Olympics, including a Federal commitment of $2.5 billion for Brisbane Arena. There is also $305 million over five years for the Macquarie Point Precinct and University of Tasmania Stadium in Hobart.

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Federal Budget 2023-24

1 Article | 3,297 Words

12/05/23

Western Australia Budget

OVERVIEW

Earlier this evening, Federal Treasurer Jim Chalmers handed down his second Budget, just under a year after the Albanese Government took office. With a return to surplus – albeit a brief one – ­and a focus on measures to address cost-of-living pressures without adding to inflation stealing the headlines, infrastructure has largely flown under the radar. In short, this is a placeholder Budget with respect to infrastructure – with the details only to be filled in once the Government lands the strategic review of the transport capital program.

As foreshadowed last week, the Federal Government has committed to undertake an independent 90-day review of the Federal Infrastructure Investment Program. This is likely to see reprioritisation of spending, and some projects announced under the previous Government cut, but the pipeline is effectively on ice for the moment. One area of spending on the chopping block in this Budget is in water infrastructure, with savings of $873 million over 11 years.

There are a small number of new infrastructure commitments to note. An additional $200 million over two years will be allocated for planning of land transport projects through the Major Projects Business Case Fund. A renewed focus on urban policy will see $371 million for new community infrastructure programs, while there are minor new investments in housing and water security for remote communities. There is also $84 million for a Net Zero Authority, which will seek to guide emissions reductions across the economy, including in infrastructure.

The focus for energy is on household and business bill relief, with a continuation of the Government’s commitments around transmission and generation. A new Hydrogen Headstart program has attracted headlines with a $2 billion price-tag, but much lies outside the forward estimates and details are thin on the ground.

The Budget also confirms previously announced funding, with $3.4 billion for capital works to support the 2032 Brisbane Olympics, including a Federal commitment of $2.5 billion for Brisbane Arena. There is also $305 million over five years for the Macquarie Point Precinct and University of Tasmania Stadium in Hobart.

MEMBER EXCLUSIVE

WA Budget 2023-24

1 Article | 1,761 Words

12/05/23

Northern Territory Budget

OVERVIEW

The Northern Territory (NT) Government has released its 2023-24 Budget this week, allocating $4.6 billion in general government infrastructure expenditure over the next four years, including $1.4 billion in FY2023-24. The projected spend represents a $501 million increase in forecast expenditure over four years from the 2022-23 NT Budget. The 15.4 per cent share of total government expenditure apportioned for infrastructure over the next four years remains higher than the 10-year average of 12.5 per cent, representing a $853 million boost over the long-term trend. The Territory’s fiscal position has also showed signs of improvement, with the net operating balance forecast to return a $121 million surplus in FY2024-25.

The NT’s capital program sees an increased focus on transport infrastructure, making up 55 per cent of the total capital infrastructure expenditure. Investments in housing and community assets account for 20.7 per cent of infrastructure capital spending, with other social infrastructure asset classes making up 13.2 per cent. The geographical breakdown of total budgeted infrastructure funding sees approximately 60 per cent allocated to upgrading existing and delivering new regional and remote infrastructure, including $601 million over four years to build and refurbish remote housing across the Northern Territory.

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NT Budget 2023-24

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19/05/23

New Zealand Budget

OVERVIEW

Yesterday, the New Zealand Government handed down its 2023 Budget, allocating NZ$71 billion (AU$66.8 billion) in infrastructure funding over a five-year budgetary horizon. This includes net capital expenditure of NZ$20.3 billion (AU$19.1 billion) in FY2023-24 and NZ$10.7 billion (AU$10.1 billion) in new funding over 10 years – unless stated otherwise all new funding allocations referred to in this article are for 10-year periods. The Budget outlines a relatively stable economic and fiscal outlook, with inflation having peaked in June 2022 and net debt expecting to peak at 21.7 per cent of Gross Domestic Product (GDP) in FY2024-25. In response to widespread flooding and Tropical Cyclone Gabrielle in January and February this year, the Budget has allocated NZ$9 billion (A$8.5 billion) in reparation and recovery funding – including NZ$5 billion (A4.7 billion) for central and local government infrastructure. As a consequence of the stimulatory impact of recovery expenditure, and in partnership with improved international tourism, the NZ Treasury no longer predicts the FY2023-24 recession that was forecast in the 2023 Budget Policy Statement released in December.

The Budget contains a focus on housing with NZ$6.8 billion (A$6.4 billion) of the NZ$10.7 billion (A$10.1 billion) in new funding allocated to social housing to deliver the current pipeline of public housing and deliver an additional 3,000 public housings by July 2025. Other new capital allocations are headlined by NZ$1.3 billion (A$1.2 billion) for education infrastructure and an additional NZ$197 million (A$185 million) to deliver the City Rail Link. NZ$983 million (A$925 million) has been set aside for projects in centrally held tagged contingencies. In addition to the NZ$71 billion (A$66.8 billion) apportioned to infrastructure, the 2023 Budget provides NZ$6 billion (A$5.6 billion) to establish a National Resilience Plan to deliver medium- and long-term infrastructure investments focusing on the resilience of NZ’s critical infrastructure.

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NZ Budget 2023-24

1 Article | 830 Words

23/05/23

Victorian Budget

OVERVIEW

Earlier today, the Victorian Treasurer, Tim Pallas, handed down the Andrews Government’s ninth Budget. The Budget provides a continuation of Victoria’s infrastructure pipeline, although the level of projected spending on infrastructure has receded slightly from the high watermark of recent years.

Against the backdrop of tightening fiscal settings, including the need to pay down rising debts that the State took on in response to the impacts of COVID-19, there are few new major infrastructure commitments. The Budget includes some relatively minor surprises in transport, health and education. The re-creation of the State Electricity Commission (SEC) dominates the headlines on energy, but the Budget provides little detail about capital investment beyond a $1 billion commitment.

The Federal Government’s 90-day review of its Infrastructure Investment Program casts a long shadow over the Victorian Budget. While the vast majority of the Victorian pipeline will remain untouched, projects being jointly funded with the Commonwealth that have not yet reached contract award face a degree of uncertainty about if and when they will proceed.

Critically, the Victorian Government has moved to reform its approach to procurement. New standard form contracts are being developed, which should improve efficiency and transparency for bidders, and provide greater consistency across procuring agencies. Also on the reform front, stamp duty will be phased out for commercial and industrial properties, with a shift to an annual property tax applied 10 years after the next sale alongside a series of transitional arrangements.

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Victorian Budget 2023-24

1 Article | 2,632 Words

26/05/23

Tasmanian Budget

OVERVIEW

Yesterday, the Tasmanian Government handed down its 2023-24 Budget, allocating $4.3 billion in general government infrastructure spending over the next four years, including $1.2 billion in FY2023-24. This four-year infrastructure spend is $582 million lower than the previous Tasmanian Budget. The 11.6 per cent of general government expenditure apportioned to infrastructure is 1.9 percentage points lower than last year but remains above the State’s 10-year average of 8.8 per cent. The State has forecasted a $356 million underspend in FY2022-23, or 27 per cent of last year’s budgeted general government infrastructure allocation.

Headlining the funding allocations in this year’s Budget is a total of $2.2 billion over four years for roads and bridges, including $683 million in FY2023-24. This includes $522 million for the New Bridgewater Bridge project over four years, completing the project’s funding profile. In addition, the Budget allocates $683 million for health infrastructure and $230 million to deliver a multi-purpose arts, entertainment and sporting precinct in Hobart.

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Tasmanian Budget 2023-24

1 Article | 999 Words

13/06/23

Queensland Budget

OVERVIEW

Earlier today, Queensland Treasurer Cameron Dick handed down his fourth Budget, laying out the Government’s economic and fiscal plans for the next four years. The 2023-24 Queensland Budget outlines a total of $45.3 billion in general government infrastructure spending over the four years to FY2026-27 – a $7.7 billion or 21 per cent increase on last year’s outlay. This means over the next four years, 12.9 per cent of general government expenditure has been allocated to the State’s infrastructure pipeline.

The Queensland Government has benefited from a significant increase in coal royalties following the implementation of a reformed royalty structure this financial year, resulting in a surplus of $12.3 billion.

In terms of new measures, cost of living measures have taken the spotlight, however the Budget also provides several new infrastructure commitments of note.

The major recipient of additional funding is in social infrastructure, with $7.1 billion over 10 years committed to infrastructure for the 2032 Brisbane Olympic and Paralympic Games and $1.6 billion allocated to health infrastructure in FY2023-24.

The focus for energy is on household energy bill relief, with a commitment to expand the energy rebate program, and a continuation of the Government’s commitments to deliver the Queensland Energy and Jobs Plan. As part of this commitment, the Budget has announced $6 billion in equity financing to Queensland Hydro for the $14 billion Borumba Pumped Hydro Energy Storage project over its construction phase, however, it remains unclear how much of this $6 billion has been allocated over the next four years.

In transport, the Budget sees few major new announcements with the majority of funding flowing to existing major projects, including the Coomera Connector Stage One and Gold Coast Light Rail Stage Three. Commitments to new projects in this Budget are headlined by $491 million over the forward estimates, commencing in FY2024-25, for the $733 million to the Bruce Highway – Anzac Avenue to Uhlmann Road upgrade.

In budgetary reform, this year’s Budget also incorporates unforeseen expenditure until April 2023 into the 2023-24 Budget Appropriation Bill. An additional Appropriation Bill covering May and June may be required to be introduced to Parliament later this year.

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Queensland Budget 2023-24

1 Article | 2,545 Words

16/06/23

South Australia Budget

OVERVIEW

Yesterday, the South Australian Treasurer, Stephen Mullighan, handed down the State’s 2023-24 Budget, allocating $17.7 billion in general government expenditure to infrastructure over the next four years, including $3.8 billion in FY2023-24. The four-year infrastructure spend represents a $2.4 billion increase on the previous South Australia Budget. This equates to a 14.8 per cent share of total general government expenditure apportioned for infrastructure over the next four years, significantly higher than the 10-year average of 10.8 per cent. The Government of South Australia (SA Government)’s fiscal position has deteriorated, forecasting a $249 million deficit for FY2022-23, $482 million worse than forecast in last year’s Budget. Meanwhile, Gross State Product is expected to grow by 3.5 per cent in FY2022-23.

The SA Budget’s capital program has a continued focus on delivering the existing infrastructure pipeline, particularly in transport, with $704 million allocated to the Torrens to Darlington section of the North-South Corridor in FY2023-24. Beyond transport, $569 million has been allocated toward health infrastructure in FY2023-24, while $325 million has been allocated to the newly established ‘A Better Housing Future Plan’ to deliver social and affordable housing. A further $289 million is allocated to school and education infrastructure in FY2023-24 and $65 million over the next four years to address capacity constraints in schools.

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South Australia Budget 2023-24

1 Article | 1,183 Words

30/06/23

ACT Budget

OVERVIEW

On Tuesday, the Australian Capital Territory’s (ACT) Chief Minister and Treasurer Andrew Barr handed down the 2023-24 Budget. The Budget includes an infrastructure investment of $5.1 billion in general government expenditure over the four years to FY2026-27. This capital commitment to infrastructure represents a $667 million increase from the 2022-23 Budget, a substantial 15 per cent increase from last year. The share of total government expenditure on infrastructure is now at 13.6 per cent, up from the 10-year average of 11.6 per cent.

This year’s Budget continues to follow a five-year budgeting and reporting cycle for its capital works program, including for general government sector infrastructure spending. This approach – introduced in previous Budgets – has a stated aim of providing a longer-term view in planning and delivery of the Territory’s capital works program. The five-year total commitment for infrastructure is $6.4 billion. However, to maintain comparability of commitments – both as a share of total spending, and across state, territory and Federal levels – Infrastructure Partnerships Australia’s Budget analysis will continue to focus on a four-year reporting cycle, accounting for the current Budget year and the three forward estimate years.

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ACT Budget 2023-24

1 Article | 649 Words

20/09/23

NSW Budget

OVERVIEW

Earlier today, the NSW Treasurer, Daniel Mookhey MLC, handed down his first Budget, the first with Premier Chris Minns and the NSW Labor Government at the helm. Total state infrastructure spending decreased, with the 2023-24 NSW Budget allocating $85.6 billion over the four years to FY2026-27. While this is a three per cent decrease on the planned expenditure in last year’s Budget, it remains slightly above the 10-year average of 15.9 per cent for total general government spending.

This year’s Budget balances its funding measures against a backdrop of fiscal pressure and economic uncertainty. Unsurprisingly, the Treasurer’s commitments have been heavily characterised by targeted reforms and directing funding to address a high inflation environment. For infrastructure, this means largely a continuation of the current pipeline with nips and tucks around the edges.

Dubbed the ‘Essential Infrastructure Plan’, this Budget’s infrastructure program is headlined by pre-election promises, with new investments in health, education, transport and energy infrastructure announced.

Headline reforms include changes to the Transport Asset Holding Entity (TAHE) operating model and the discontinuation of stamp duty exemptions and rebates for zero and low emissions vehicles. The previously promised two-year $60 per week toll cap has also been formalised in this Budget.

Following the announcement of the Strategic Infrastructure Review led by Ken Kanofski earlier this year, the Budget confirms that the Great Western Highway Duplication, Fast Rail Program and Ultimo Powerhouse Museum will be delayed or descoped. The Government previously cancelled Wyangala Dam Wall Rising and New Dungowan Dam projects prior to the release of the Budget.

As foreshadowed, the Energy Security Corporation has received an initial funding allocation of $1 billion reservation from the Restart NSW Fund. The Transmission Acceleration Facility has also received $804 million to assist the delivery of the Central-West Orana and New England Renewable Energy Zones and the Hunter Transmission project.

MEMBER EXCLUSIVE

NSW Budget 2023-24

1 Article | 3469 Words