Budget season 20-21

 

At Infrastructure Partnerships Australia we want to help you navigate the details delivered in the 2020-21 Federal and state Budgets. Prepared by our in-house team of policy specialists, our detailed analysis covers all the major announcements.

 


 

OVERVIEW

FED Budget | WA Budget | SA Budget | NSW Budget  | VIC Budget

More Information | Budget Monitor 19-20

 



FEDERAL BUDGET 2020-21
06 October 2020

 

Federal Treasurer Josh Frydenberg handed down one of the most important Budgets of the modern era, laying out a plan to support Australia’s recovery from the COVID-19 pandemic. Infrastructure will play a major role in this recovery, with a dramatic increase in investment – particularly in land transport infrastructure – set to underpin stimulus efforts.

These record levels of spending will be enabled by historically high levels of borrowing, with a deficit of $213.7 billion projected for FY2020-21, and net debt to reach a staggering $966 billion in FY2023-2024. This is a stark shift in fiscal position since the Morrison Government’s last Budget in April 2019, which projected a surplus for FY2019-20.


 Click on image for high resolution

Source: Infrastructure Partnerships Australia


 

WA BUDGET 2020-21
09 October 2020

 

The Government of Western Australian handed down its delayed 2020-21 Budget. Much of the Budget is centred on the WA Recovery Plan – announced over recent months – which outlines the government’s stimulus efforts in response to COVID-19.

There are few major infrastructure announcements in this year’s Budget, but continued investment in METRONET projects headlines spending over the forward estimates. $1.9 billion in new funding allocated for the program in this Budget brings the total spend on METRONET projects to $5.7 billion over the next four years.

See analysis of WA infrastructure spending in the 2020-21 Budget illustrated below. 

 

WA Government spending on infrastructure (LHS) as a proportion of General Government Expenditure (RHS)


  Click on image for high resolution

Source: Infrastructure Partnerships Australia 

 


 

SA BUDGET 2020-21
10 November 2020

 

The South Australian Treasurer Rob Lucas handed down the 2020-21 State Budget. Infrastructure reform and investment forms a central plank of the South Australian Government’s economic recovery strategy. The 2020-21 State Budget delivers a blend of small-scale road maintenance and school upgrades designed to stimulate employment in the short-term alongside major long-term infrastructure investments like the North-South Corridor. In a major step towards road reform, the Marshall Government also announced it will introduce a distance-based charge on Electric and Zero Emissions Vehicles, which is set to come into effect on 1 July 2021.

The 2020-21 Budget allocates approximately $13.5 billion in general government expenditure to infrastructure over the next four years, an increase of around $3.7 billion or 38 per cent compared to the previous Budget. The SA Government’s infrastructure spending over the next four years, and historical investment levels are illustrated in the graph below.
 

 

South Australia General Government Infrastructure Funding

 

  Click on image for high resolution

Source: Infrastructure Partnerships Australia 

 


 

NSW BUDGET 2020-21

18 November 2020

 

Infrastructure investment forms a major component of the NSW Government’s economic recovery strategy. The Budget delivers a targeted stimulus program, underpinned by small capital projects and maintenance programs across social housing, transport, schools and health, alongside confirmation of major investments in projects such as the Sydney Metro West, Sydney Metro – Western Sydney Airportand the Sydney Gateway project.

The NSW Budget also delivers an ambitious economic reform agenda. Drawing on recommendations from the NSW Productivity Commission’s Green Paper and the NSW Federal Financial Relations Review led by David Thodey AO, the NSW Government has committed to transition away from the current transfer duty and land tax system to a single property tax model with a public engagement process to commence in the coming months.

The 2020-21 Budget allocates approximately $84.2 billion in general government expenditure to infrastructure over the next four years, an increase of around $12.5 billion or 17 per cent compared to the previous Budget. This represents almost 20 per cent of the NSW Government’s total general government expenditure – a marked increase on the 10-year average of 14 per cent. The NSW Government’s infrastructure spending over the next four years, and historical investment levels are illustrated below.
 

NSW General Government Infrastructure Funding

 

Source: Infrastructure Partnerships Australia 

 


 

VIC BUDGET 2020-21

24 November 2020

 

The Budget delivers a record increase in funding for major infrastructure projects, as well as small-scale maintenance and upgrade programs, aimed at engaging the full capability of the contracting market. This investment is headlined by the previously announced $5.3 billion investment in more than 12,000 new social and affordable homes, alongside $2.2 billion to commence the Suburban Rail Loop, $1.9 billion to upgrade and build new schools, and $1.5 billion to procure 100 Next Generation Trams and establish a new tram maintenance facility.

As previously announced, the Victorian Budget also sees the introduction of a road user charge on Electric Vehicles. Drawing on recommendations from Infrastructure Partnerships Australia’s proposal, the Victorian Government has committed to introduce a distance-based charge for all Victorian registered zero and low emission vehicles. The Budget confirms that more than net revenue raised over the forward estimates will be re-invested in measures to accelerate the adoption of zero and low emission vehicles.

The 2020-21 Budget allocates approximately $69 billion in general government expenditure to infrastructure over the next four years, an increase of $15.3 billion or 28 per cent compared to the previous Budget. This represents 18 per cent of the Victorian Government’s total general government expenditure – a marked increase on the 10-year average of 11.9 per cent. The Victorian Government’s infrastructure spending over the next four years, and historical investment levels are illustrated below. 

 

VIC General Government Infrastructure Funding

 

 

Source: Infrastructure Partnerships Australia 

 


 

Members – sign up to our Members Portal for more details

 

Read: Special Edition Budget Reports

Infrastructure Partnerships Australia, on behalf of the sector, is pleased to provide in-depth Special Edition Budget Reports to our members via the Infrastructure Report Archive.

 

Watch: Budget summaries on InfraFlix

Watch short videos of our CEO Adrian Dwyer summarising the key things you need to know on InfraFlix, our on demand streaming platform.

 

 


 

 

Research: Budget Monitor 

Infrastructure Partnerships Australia’s Australian Infrastructure Budget Monitor measures infrastructure funding commitments by jurisdictions for the budget year and forward estimates. This report collates information from the latest budget papers from federal, state and territory governments to provide insights into their infrastructure investment programs beyond the headline figures.

 

Australian Infrastructure Budget Monitor 2019-20

 


 

OVERVIEW

FED Budget | WA Budget | SA Budget | NSW Budget | VIC Budget

More Information | Budget Monitor

 


 

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