MESSAGE FROM THE CEO As the effects of the pandemic continued to bring widespread economic and social impacts, the 2021-22 Budget season saw governments once again deploy infrastructure investment as a stimulus lever to boost aggregate demand and support employment in the economy. The 2021-22 Budgets delivered by Australia’s federal, state and territory governments have set another high watermark for infrastructure spending nationally and in many jurisdictions individually. In total, $248 billion was allocated in general government sector infrastructure funding over the four years to FY2024-25. This is $22.6 billion – or 10 per cent – higher than in the previous year’s Budgets.
Despite the importance of the commitments by all governments to supporting Australia’s productivity and quality of life, these Budget announcements are only the first step. Delivery of a pipeline of this scale comes with major challenges, as the sector must redouble its efforts to build additional capacity and expertise, and work closely with governments to move projects from concept to completion. Value-for-money will need to be a sustained point of focus for all market participants throughout delivery of these infrastructure commitments. Reforms such as extending infrastructure specific skilled migrant visas to better align with project timelines and increasing supply chain resilience are just some examples of actions that can be taken to find the best price for the intersection of supply and demand.
Once again, Victoria and NSW dominate the pipeline, with the two states combining for $175.8 billion in infrastructure funding over four years – over 70 per cent of the national total.
The good news is the sector is up for the challenge, motivated by the opportunity to support the Australian economy through the pandemic and leave a legacy of productive infrastructure for future generations.
For the first time, Victoria has taken top spot in the rankings. Despite NSW increasing its total infrastructure spend, the increase by the Victorian Government of $21.2 billion on the allocation in its previous Budget saw the state emerge triumphant in this year’s Budget Monitor. With a total of $90.2 billion allocated to capital works over the period to FY2024-25, this means almost one in every four dollars of the Victorian Government’s general government expenditure is being directed toward infrastructure investment.
We hope you find the 2021-22 Australian Infrastructure Budget Monitor useful. If you are interested in learning more about the infrastructure pipeline in Australia you can find more information on our Australia and New Zealand Infrastructure Pipeline (ANZIP) and subscribe to our monthly Pipeline Reports. More detailed analysis of each jurisdiction’s Budget is available exclusively for Infrastructure Partnerships Australia members.
Adrian Dwyer Chief Executive Officer
Australian Infrastructure Budget Monitor – 2021-22
Infrastructure Partnerships Australia
2
