Out-Law News | 24 May 2021 | 8:02 am | 1 min. read
The Australian government has allocated A$15.2 billion ($11.9bn) for new infrastructure projects, according to its budget for 2021/22.
The new funding builds on its A$110bn ($85.9bn) 10-year infrastructure investment pipeline. It is reported that the money will create more than 30,000 jobs.
Among the funding, Queensland has been allocated around A$2bn ($1.6bn) West Australia has been promised A$1.6bn ($1.2bn), Victoria and South Australia have been promised A$3.4bn ($2.7bn) respectively, New South Wales will get A$3.8bn ($3bn), Northern Territory, Tasmania and Australian Capital Territory have been promised A$401 million ($313m), A$377.2m ($294.4m) and A$186.2m ($145.3m)respectively. Most of the investment will focus on road and rail projects.
Australian government launched its 10-year infrastructure investment program in January, aiming to bust congestion, improve safety on roads and meet its national freight challenge.
Australian government promised A$507bn ($396bn) for recovery support for its budget for 2020/21. According to IJGlobal, the government spent A$621bn ($485bn) on the pandemic, not accounting for reduced revenue in 2020.
Infrastructure expert Louise Santos of Pinsent Masons, the law firm behind Out-Law, said: “Australian governments at both state and federal levels have made infrastructure investment a strong focus in recent years and thankfully that has not changed with the pandemic. It is obviously reassuring for the sector that the federal budget includes firm commitments to these major projects and more certainty around the future pipeline in otherwise uncertain times.”
“However, the challenges of capacity constraints in the construction industry and appropriate risk allocations remain, and contractors will be waiting to see if any innovative thinking will come from government to help overcome these hurdles,” she said.