What will the 2022 Budget bring to the Construction and Infrastructure Sectors?

• The pre election budget is in and as expected it has seen some relief for cost of living pressures as well as fuel excise relief of 22 cents for 6 months as well as a one of payment to Welfare recipients and pensioners in the amount of $250. . The budget appears to balance the fine line between a large spend causing further inflationary pressures and relief to families on lower incomes affected by the increases in costs. In the Infrastructure space the budget includes funding for priority road and rail projects of $17B over the next 10 years, water infrastructure project in regional communities of $7.4 B over the next 12 years and $1.3B for communications of the next 6 years. Other measures included tax benefits for SMEs to invest in training and technology and an extension and expansion on home loan guarantees for housing. Skills and training:?$2.8 billion in funding for an overhauled apprenticeship incentive scheme to grow the number of qualified trades people by subsidising the wages of select apprentices and trainees, providing up to $5,000 payments to new apprentices (in priority sectors) and up to $15,000 in wage subsidies for employers who take them on. Defence spending is up with a significant increase to $270 B in spending over the next 10 years.

The government also retains a contingency reserve in the budget which will grow to $15.4B by 2025-2026 pointing to a number of additional announcement prior to the election.

The main infrastructure projects by states are noted as follows:

New South Wales?is set to receive $3.3 billion for infrastructure, of which $1.33 billion is in the Budget and forward estimates period. Key projects include (but are not limited to):

• $1.0 billion for Sydney – Newcastle faster rail
• $352 million for the Milton – Ulladulla bypass
• $355 million for the Pacific Highway
• $300 million for grade separations
• $232.5 million for the Newell Highway
• $232.5 million for Mulgoa Rd stage 2
• $100 million for Southern connector Rd
• Other projects below $100 million in value

Victoria?is set to receive $3.4 billion for infrastructure, of which $208.4 million is in the Budget and forward estimates period. Key projects include (but are not limited to):

• $1.2 billion for the Beveridge Interstate Freight Terminal
• $920 million for Outer Metropolitan Ring Rail South
• $740 million for the Western Interstate Freight Terminal
• $280 million for the Beveridge Interstate Freight Terminal road connections
• $109.5 million for Mickleham Rd
• Other projects below $100 million in value

Queensland?is set to receive $3.3 billion for infrastructure, of which $446.5 million is in the Budget and forward estimates period. Key projects include (but are not limited to):

• $1.6 billion for the Beerwah-Maroochydore rail extension
• $1.1 billion for Brisbane – Gold Coast faster rail
• $190 million for the Mount Isa to Rockhampton corridor
• $114.4 million for the Tennant Creek to Townsville corridor
• Other projects below $100 million in value

Western Australia?is set to receive $1.7 billion for infrastructure, of which $1.05 billion is in the Budget and forward estimates period. Key projects include (but are not limited to):

• $441.2 million for METRONET
• $320 million for the Bunbury outer ring road
• $200 million for the Tonkin Highway
• $178 million for the Pinjarra Heavy Haulage Deviation
• $145 million for the Thomas Road Dual Carriageway
• $140 million for regional road safety
• Other projects below $100 million in value

South Australia?is set to receive $2.8 billion for infrastructure, of which $229.3 million is in the Budget and forward estimates period. Key projects include (but are not limited to):

• $2.3 billion for North – South Corridor
• $200 million for Marion Road – Anzac Highway to Cross Road
• $120 million for Adelaide Hills roads
• Other projects below $100 million in value

Tasmania?is set to receive $639.9m for infrastructure, of which $185.3m is in the Budget and forward estimates period. Key projects include:

• $336m for northern roads
• $100m for the Great Eastern Tourism Drive
• $96.0m for Tasmanian rail freight.

The?Northern Territory?is set to receive an additional $237 million for infrastructure, of which $105 million is in the Budget and forward estimates period. Projects funded are:

• $132 million for Central Australian tourism roads
• $55 million for Tiger Brennan drive
• $50 million for Alice Springs – Hall Creek road upgrade.