Catalysing infrastructure investment
The Government is making a historic investment in the 2014‑15 Budget to get on with building Australia's infrastructure.
A core element of the Government's Economic Action Strategy is the commitment of an additional $11.6 billion in the Budget for the Infrastructure Growth Package.
The Growth Package delivers $5.0 billion for the Asset Recycling Initiative, $3.7 billion to boost infrastructure investments to expedite projects and $2.9 billion for the Western Sydney Infrastructure Plan. It brings the Commonwealth's total investment in infrastructure to $50 billion through to 2019‑20.
This represents a record level of investment in infrastructure by a Commonwealth government and reflects the Government's resolve to take decisive action to get real activity going, improve productivity and build a stronger, more prosperous economy.
These particular investments will improve the quality, efficiency and adequacy of road and rail links, reducing congestion, lowering business costs and increasing the liveability of our cities and regional areas.
The Government's investment will also generate significant additional state and private sector participation to build the infrastructure that Australia needs.
The $11.6 billion Infrastructure Growth Package is expected to catalyse over $58 billion of new infrastructure investment, in particular by unlocking state government balance sheets. This is on top of the Government's existing Infrastructure Investment Programme, which will generate some $68 billion in infrastructure investment when combining expected state and private sector funding.
Taken together, this will catalyse additional infrastructure investment in excess of $125 billion.
This investment will transform infrastructure across the country and lay the foundations for future growth. When the construction projects supported by the Government's infrastructure initiatives are completed, they will add around 1 percentage point to GDP.
* This figure does not include potential additional private sector funding stimulated by the Asset Recycling Initiative.