Budget Season
2021-2022

The Infrastructure Partnerships Australia team dive deep into the Budget papers of Federal, State and Territory Governments to go beyond the headlines. This Budget Hub provides highlights and a summary of public infrastructure funding and reform commitments over the coming years. Members of Infrastructure Partnerships Australia can access in-depth analysis of each Budget through the Members’ Portal.

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Jurisdictions

Federal
New South Wales
Victoria
Queensland
Western Australia

South Australia
Tasmania
Northern Territory

Tasmania
Australian Capital Territory

 

15/06/21
Queensland Budget

OVERVIEW

The 2021-22 Queensland Budget outlines $31.9 billion in general government infrastructure spending over the next four years. This includes few surprises, with the vast majority of funding for projects previously announced and under delivery, including the final stages of Cross River Rail, and continued funding for upgrades to the M1 Pacific Motorway and Bruce Highway. In social infrastructure, the Budget includes $1.8 billion over four years for new and upgraded social housing stock.

However, the Budget reduces overall four-year public infrastructure investment, with a projected $3.3 billion reduction in spending relative to last year’s Budget. While the initial phases of the economic recovery are strong in Queensland, this is likely to be viewed as a potentially premature withdrawal of infrastructure stimulus – particularly in the context of growing demand from population growth and the infrastructure requirements of the potential 2032 Olympics.

The move to withdraw some aggregate infrastructure stimulus also puts Queensland at odds with the approach of other Australian governments, which are stepping up their infrastructure investment levels again this year.

 

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Queensland Government General Government Infrastructure Expenditure

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20/05/21
Victorian Budget

OVERVIEW

Following on from last year’s big spending announcements, the 2021-22 Victorian Budget raises the bar even further, delivering the State’s highest infrastructure spend on record. The vast majority of spending over the next four years will flow to priorities that have previously been announced or are under delivery, including Metro Tunnel, West Gate Tunnel, North East Link, Melbourne Airport Rail, Suburban Rail Loop and Level Crossing Removal Project.

The Budget also reveals signs of market strain in procurement and delivery, reflected in projects running over cost and over time across the pipeline. This mirrors recent analysis by the Victorian Auditor-General, which found an average 30 per cent increase in costs, and 30 per cent delay in time on projects with an estimated total cost of more than $100 million. These cost over-runs and time delays are not unique to Victoria and reflect similar challenges in other parts of the Australian infrastructure market and around the world.

However, this is set against the somewhat conflicting challenge of an overall projected Budget underspend for this financial year of $4.9 billion.

In response, the Victorian Government highlights forthcoming guidance from the Department of Treasury and Finance on procurement and packaging for major projects. This guidance will include new advice on improved cost management for projects delivered through collaborative contracts, as well as the development of standard form contracts for each type of procurement model.

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Victorian Government General Government Infrastructure Expenditure

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17/05/21
Federal Budget

OVERVIEW

The 2021-22 Federal Budget maintains and builds on the historic high of infrastructure funding set last year, with a continued focus on stimulus measures to support Australia’s economic recovery from COVID-19. While infrastructure wasn’t the centrepiece of the Budget, the Treasurer has used an expanded infrastructure program to support a broader jobs and recovery agenda.

Despite the scale of spending, the Budget includes few surprises, with the bulk of funding flowing to previously announced major road and rail commitments. Headlining the additional funding commitments are $2.6 billion for the North-South Corridor in Adelaide, $2 billion for the Great Western Highway, west of Sydney, and $2 billion for a Melbourne Intermodal Terminal – set aside as a contingent allocation and potentially delivered as an equity investment.

Beyond transport, the Budget sees around $2.5 billion over four years for water infrastructure, $774 million over four years for health infrastructure and $216 million for recycling infrastructure. In energy, the Budget includes a range of previously announced measures to support the Federal Government’s Technology Investment Roadmap.

While this is not a reforming Budget, there was a welcome signal from the Treasurer that the Government will consider streamlining visa processes to target highly skilled individuals ‘when circumstances allow’. Targeted well, a change in the migration settings can help address emerging capacity constraints in the economy, including the infrastructure sector.

 

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Federal Government General Government Infrastructure Expenditure

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04/05/21
Northern Territory Budget

OVERVIEW

The Northern Territory Government released its 2021-22 Budget this week, allocating $4.4 billion in general government infrastructure expenditure over the next four years, including $1.3 billion in FY2021-22. The projected spend maintains the elevated level of investment outlined in the 2020-21 Budget. The 15.1 per cent share of total government expenditure apportioned for infrastructure over the next four years is higher than the 10-year average of 13.4 per cent – representing a $479 million boost over the long-term trend. The NT Budget also shows some green shoots for economic recovery, a $577 million improvement since the last Budget in the projected deficit, and a continued decline in the unemployment rate.

The NT’s capital program includes a continued focus on transport, comprising 46 per cent of committed infrastructure expenditure. Investments in housing and community assets account for 27 per cent of infrastructure spending, with other social infrastructure sectors making up roughly 15 per cent. Regional and remote projects will receive 60 per cent of total infrastructure spending, including $615 million over four years to build and refurbish remote Aboriginal housing.


 

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NT General Government Infrastructure Expenditure

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General Government Infrastructure Expenditure

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For more information
please contact

Jon Frazer
Director, Policy and Research
Infrastructure Partnerships Australia

[email protected]
+61 2 9152 6017

Prabash Sedara
Senior Analyst
Infrastructure Partnerships Australia

[email protected]
+61 2 9152 6017

 

Jack Bateman
Project Analyst
Infrastructure Partnerships Australia

[email protected]
+61 2 9152 6017

 


For all media enquiries contact:

Michael Player
Director, Communications and Engagement
Infrastructure Partnerships Australia

[email protected]
+61 2 9152 6017