MGA Independent Retailer Issue 4 July-August 2021

Page 17

INDUSTRY NEWS

17

NATIONAL

The Australian Economy - The infrastructure projects boosting the economy As the post-COVID economic recovery gathers steam around the country, the Federal and State Governments are progressing a long list of infrastructure development projects to accelerate the recovery. Beyond the short term jobs benefit, the knock-on effects of these investments are likely to be significant. We discuss the coming infrastructure boom and what it means below. Australian economy in recovery mode The Australian economy is recovering after last year’s pandemic-related economic weakness. IHS Markit estimates the economy will grow by 3.2% in 2021, after a 2.4% contraction in 2020. And here comes the infrastructure spending boom Both Australian Federal and State Governments responded to the pandemic by committing to spend more on infrastructure. The reasoning is sound. In fact, late last year, the IMF presented to its member countries about the benefits of investing in infrastructure in a low-interest rate world with rising unemployment. They showed that increasing public investment by just 1% of economic output would create 7 million jobs directly and between 20-33 million jobs from the knock-on effects across the global economy. Australia’s Federal and State Governments have followed the IMF’s recommendations by budgeting to spend a total of $226 billion over the coming four years, until 30 June 2024. That’s a 26% increase on the previous budget, so we are in the midst of an infrastructure spending boom. Where is the money going? The upcoming $226 billion of infrastructure spending is good news for all states and territories, with solid

spending growth planned across the board. The list of planned projects includes: 1. WestConnex (NSW): $16 Billion 2. Sydney Metro (NSW): $12 Billion 3. Melbourne Metro Tunnel (VIC): $11 Billion 4. Melbourne to Brisbane Inland Rail (National): $9.3 Billion 5. Bruce Highway Upgrade Program (QLD): $8.5 Billion 6. West Gate Tunnel (VIC): $6.8 Billion 7. Cross River Rail (QLD): $5.4 Billion 8. Western Sydney Airport (NSW): $5.3 Billion 9. Melbourne Airport Rail Link (VIC): $5 Billion 10. Western Sydney Infrastructure Plan (NSW): $2.9 Billion Implications The economic implications of this infrastructure spending boom are likely to be significant, bearing in mind the IMF’s research shows that the knock-on economic benefits are 3-5 times larger than the direct benefits. For example, the Inland Rail project connecting Melbourne with Brisbane is expected to create 21,500 jobs at peak construction. Over its first fifty years of operations, it’s expected to boost economic growth by $18 billion

above the cost of delivery. And then, there are the knock-on benefits which include increased domestic tourism and business travel. The $6.5 billion Western Australian ‘Building for Tomorrow’ road and rail infrastructure projects are another good example. Whilst the short term benefits are focused upon job creation; the long term knock-on benefits include time savings for commuters, growing tourist numbers, and increased private sector investment. And then there’s the Marinus Link project, an undersea and underground electricity connection between Tasmania and Victoria, which will enable the more efficient transfer of renewable energy. This project is expected to create thousands of jobs and billions in economic growth, and the knock-on benefits include stronger growth in the renewables sector and a more robust grid system. Conclusion The Australian economic recovery is building steam, and the infrastructure spending boom will serve to accelerate economic growth. With $226 billion to be invested in infrastructure projects in the coming four years, the direct economic benefits will be strong, whilst the knockon benefits will be far more significant.


Turn static files into dynamic content formats.

Create a flipbook

Articles inside

Same day alcohol delivery regulations tightened

2min
pages 69-72

ASEAN, Australia launch Project Portcullis 2021 to tackle Illicit Tobacco

1min
page 68

eftpos’ digital identity solution connectID is now live

2min
page 63

19 Crimes Cali Red wine in partnership with California icon, Snoop Dogg

1min
page 67

IGA launches new-look ‘Supa Valu’ stores to rival Aldi

2min
page 61

Adroit’s top tips to help you to prepare for your supermarket insurance renewal

3min
pages 56-57

Industry Tribute: Dean White

1min
page 62

Apply Wood and Timber Product Knowledge training

1min
page 55

Flu Season: The Importance of Personal Hygiene and PPE 2021

5min
pages 48-49

South Australia Timber Industry Roundtable

1min
page 53

Getting to know our MGA TMA members

2min
page 52

Frederick O’Connell Scholarship

1min
page 54

Can businesses mandate COVID-19 inoculation for Australian workers?

1min
pages 45-46

Woolworths Scraps Darwin Dan Murphy’s Development

2min
page 47

Consumers want to Shop Local – Go Local

2min
page 44

COSBOA’s Peter Strong to retire; Alexi Boyd appointed CEO

2min
page 39

Local Supermarkets preferred by Australians

2min
pages 36-38

A Sustainable Supermarket - Case Study

5min
pages 34-35

ACCC will not oppose Woolworths acquiring 65% share of PFD

3min
pages 30-31

2021 Budget Supports “Go Local”

1min
page 29

Cybersecurity with Minister for Home Affairs Hon Karen Andrews MP

1min
page 27

A message from the ATO: JobMaker Hiring Credit

2min
page 26

NSW Treasury Small Business Economic Recovery Forum

2min
page 28

MGA meets with QLD Minister for Small Business Hon Di Farmer MP

2min
page 24

Introducing Wage Inspectorate Victoria

1min
page 21

Grocery unit pricing here to stay

1min
page 20

The Australian Economy - The infrastructure projects boosting the economy

2min
page 17

MGA TMA welcomes Aimee and Jenny to the Legal and IR Team

3min
page 13

Major changes to part-time hours in the general retail industry award

2min
pages 14-15

Single-Use Plastic item bans around Australia

3min
pages 18-19

Fair Work Act 2009: New Definition of Casual Employment – what does this mean for Members?

2min
page 12

The Australian Economy - A better economy = more confident firms

2min
page 16

Why are exorbitant Merchant Payment Fees affecting the viability of members businesses?

5min
pages 6-7

CEO welcome

4min
page 5
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.