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$17.6B STIMULUS PACKAGE SET TO BOOST CONSTRUCTION BUSINESSES
The Federal Government has announced a $17.6 billion stimulus package to keep businesses running, support households and the Australian economy in the face of challenges posed by the spread of the coronavirus. The package will focus on keeping Australians in jobs and helping small and medium sized businesses to keep running. It will be split into the following four parts: supporting business investment, providing cash flow assistance for small and medium sized businesses, targeted support for the most severely affected sectors, regions and communities and household stimulus payments.
To support businesses the Federal Government will commit $700 million to increase the asset write off threshold from $30,000 to $150,000. It will also expand access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020. An example of an asset that may be able to be immediately written off would be a concrete tank for a builder. There will also be a commitment of $1.3 billion to help small businesses in supporting the jobs of around 120,000 apprentices and trainees. Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice or trainee’s wage for up to nine months, from 1 January 2020 to 30 September 2020. If a small business is not able to retain an apprentice, the subsidy will be available to a new employer that employs the apprentice.
The Federal Government will commit $700 million to increase the instant asset write-off.
Master Builders Australia have backed the stimulus package. CEO Denita Wawn said the industry needs confidence and this is a clear signal from the government they are determined to do whatever it takes. “There are more than 380,000 small building businesses and tradies in our industry, more than any other sector of the economy, that will benefit from the government’s strong focus on backing small businesses,” Ms. Wawn said.
Ms. Wawn said incentives to invest in business assets are well targeted to the construction industry. She said there is no doubt builders and tradies will be encouraged to invest in new plant and equipment.
“However, if there is a major contraction in building activity then the benefit of these measures will be blunted.
The government must take a strong leadership role in ensuring that construction of government projects currently underway continue and that projects scheduled to commence are not delayed or withdrawn,” Ms. Wawn said.
“Our industry also remains nervous about how protracted the inevitable shortage and delayed delivery of imported building products will be.
“This is a hit to our industry that is looming over the next few months and additional measures and extensions of some of stimulus measures may be required to help the industry weather that storm,” she said.
Prime Minister Scott Morrison said as part of the plan up to 6.5 million individuals and 3.5 million businesses would be directly supported by the package.
“Just as we have acted decisively to protect the health of the Australian people, based on the best evidence and medical advice, our support package responds to the economic challenges presented by this pandemic in a timely, proportionate and targeted way,” Mr. Morrison said.
“Our targeted stimulus package will focus on keeping Australians in jobs and keeping businesses in business so we can bounce back strongly.”
“The economy needs temporary help right now to bounce back better so the livelihoods of all Australians are protected,” he said.
AIRPORT CENTRAL STATION, PERTH NEARS CONSTRUCTION COMPLETION
Construction of the new Airport Central Station in Perth has reached 70 per cent completion.
Majority of the works at the site have been underground with significant excavation involved to build the three-level railway hub.
Above-ground construction has now begun with the first step to start building the roof structure. The first girders of the 137-tonne roof structure are being craned into place.
The steel girders were fabricated locally by Naval Base company Pacific Industrial Co.
Constructing the roof structure is expected to take three months. Then, specially designed sheeting will be installed. which will help to reduce glare for pilots flying in and out of Perth Airport.
The 280-metre Skybridge between Airport Central Station and Perth Airport is also close to completion. The walkway features travelators and information screens and will provide a seamless connection between the station and Terminals One and Two.
Tunnel boring machine Sandy, the second tunnel boring machine on the project, is due to arrive at Bayswater Junction in the middle of the year. Her arrival will mark the end of tunnelling on the project.
Once operational in late 2021, the Forrestfield-Airport Link will provide a 20-minute direct route between the eastern foothills and the CBD as well as the wider public transport network via the airport.
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CROSS RIVER RAIL OPPORTUNITIES FOR SUBCONTRACTORS TO BE ANNOUNCED
With more than 200 companies across South East Queensland already securing Cross River Rail Contracts, a wave of sub-contractor opportunities for the tunnels and stations work package will be released.
Cross River Rail Minister Kate Jones said the Cross River Rail project would create thousands of construction jobs over the next five years.
“We’re working hard to make sure that local subbies and workers benefit from the biggest infrastructure project in Queensland’s history,” she said.
“We’ve already seen iconic Queensland company Wagners awarded a $40 million contract to supply precast concrete segments and we want companies asking themselves ‘could we be the next ones to win?’”
Ms. Jones met with Multhana Property Services, an indigenous company from Eight Mile Plains, which is contracted to deliver cleaning and maintenance services at the project’s worksites.
“Multhana is a great example of a proud Queensland company benefiting from Cross River Rail,” she said.
“They’re doing a great job and already have eight staff working on the project, with that number set to grow as more worksites are established.”
Ms. Jones revealed a new website is now live for companies to register their interest to apply for contracts through the main contractor.
“This will be the one-stop shop for anyone who wants to work on Cross River Rail,” she said.
“If you’re a local subby with the right expertise, we want you to apply to work on the biggest project in Queensland’s history.”
This announcement comes alongside a major reform package announced by Ms. Jones to ensure contractual commitments on the Cross River Rail project are delivered as the project moves into construction phase.
Ms. Jones said her priority was to ensure that Pulse consortium and head contractor CPB Group complied fully with their contract with the state government.
“Since coming into the role at the end of last year, I have been reviewing the structure of the Cross River Rail Delivery Authority.”
She said it is clear to her and the cabinet that now the project has moved from procurement to construction, compliance will need to be strengthened.
“Our government has made strong commitments to Queenslanders to deliver long-term benefits to the state’s future through our record investment in infrastructure,” Ms. Jones said.
“This includes more jobs for locals, more training for young apprentices and trainees and better workplace health and safety, delivering real opportunities for local Queensland businesses to get contracts as well as fair industrial relations practices and environmental compliance.”
Ms. Jones announced that cabinet had agreed to the following reforms: 1. The Cross River Rail Delivery Authority will report directly to the Minister 2. A Compliance Unit will be established to ensure all commitments made by the contractor are met during the construction of the project 3. The board will be restructured once the current term expires in April this year in line with the transition from procurement to construction.
Ms. Jones said that the Compliance Unit would be established immediately.
AUSTRALIAN ASPHALT PAVEMENT ASSOCIATION RELEASES NEXT INTERNATIONAL CONFERENCE DATE
Every two years, the Australian Asphalt Pavement Association (AAPA) hosts its international flexible pavements conference and exhibition.
The next will be held at the Brisbane Convention and Exhibition Centre from 16 to 18 August 2021.
The title of the conference will be “Roads going full circle” with key themes around sustainability and asset management.
In a statement, the AAPA said the title refers to the need for the infrastructure sector to become circular and incentivise circular economy solutions to respond to the challenges of climate change, carbon emissions and decrease of natural resources.
The four key themes for the conference will be: • Sustainable future pavements • Trends in the bitumen and asphalt industry – development and innovation • New technologies/continual improvement • Retaining asset value.
Following the success of the 2019 conference and exhibition, AAPA members are advised to save the date and keep an eye out for more updates.
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CONTRACTORS DELIVER $137M SCONE BYPASS IN NSW
The new Scone Bypass will soon open to traffic, enabling faster drive times along the New England Highway in NSW.
Daracon Group was contracted to construct the 5.5-kilometre bypass in March 2018.
With construction complete, a community walk was held to celebrate the new route.
Deputy Prime Minister and Federal Minister for Infrastructure, Transport and Regional Development Michael McCormack said the entire region would benefit immensely from the bypass opening.
“[The] community walk is a fitting way to mark the completion of the project, which follows many years of planning, consultation and construction,” Mr. McCormack said.
NSW Minister for Regional Transport and Roads Paul Toole said the bypass would change the way people moved in and around Scone.
“Until now, highway traffic passed through Scone along the main road access to the town, which is also the main street through the central business district,” Mr. Toole said.
Some 8400 daily vehicles will no longer need to travel through the town centre on the New England Highway south of Scone.
The grade-separated intersection at the southern end of the bypass, which crosses over the rail line and Kingdon and Liverpool Streets, will allow uninterrupted access to the bypass at the north and south of town
Some 8400 daily vehicles will no longer need to travel through the town centre.
and in the middle at Aubins Street.
On this section of the highway, there were 26 crashes in the five years to December 2015, and the upgrade is hoped to improve road safety in the area.
VIC INFRASTRUCTURE PROJECTS TO PRIORITISE RECYCLED MATERIALS
Recycled First, a new initiative from the Victorian Government, is set to boost the use of recycled and reused materials in construction projects.
According to Transport Infrastructure Minister Jacinta Allan, Recycled First brings a uniform approach to the existing “ad hoc” use of recycled products on major transport infrastructure projects.
“We’re paving a greener future for
Victoria’s infrastructure, turning waste into vital materials for our huge transport agenda and getting rubbish out of landfills,” Ms. Allan said.
“Recycled First will boost the demand for reused materials right across our construction sector, driving innovation in sustainable materials and changing the way we think about waste products.”
The program will incorporate recycled and reused materials that meet existing standards for road and rail projects, with recycled aggregates, glass, plastic, timber, steel, ballast, crushed concrete, crushed brick, crumb rubber, reclaimed asphalt pavement and organics taking precedence over brand new materials.
“Companies interested in delivering major transport infrastructure projects will be required to demonstrate how they will prioritise recycled and reused materials, while maintaining compliance and quality standards,” Ms. Allan said.
Additionally, contractors will need to report on the types and volumes of recycled products used. The policy will not set mandatory minimum requirements or targets, Ms. Allan said.
Instead, a project-by-project approach will allow contractors to liaise with recycled materials suppliers to determine if there are adequate supplies of the necessary products for their project.
“Work is already underway with current construction partners to ensure more recycled content is being used on major projects, in addition to the new Recycled First requirements,” Ms. Allan said.
“The M80 Ring Road, Monash Freeway and South Gippsland Highway upgrades will use more than 20,000 tonnes of recycled materials, and 190 million glass bottles will be used in surfaces on the $1.8 billion Western Roads Upgrade.”
According to Ms. Allan, recycled demolition material was also used to build extra lanes along 24 kilometres of the Tullamarine Freeway, as well as the Monash Freeway and M80 Ring Road.
“The state government is also reusing materials created by its own projects, with 14,000 tonnes of soil excavated from the Metro Tunnel site in Parkville now being used in pavement layers on roads in Point Cook,” she said.
“This material weighs as much as 226 E-class Melbourne trams and would otherwise have gone to landfill.
CONTRACTOR TO BEGIN CONSTRUCTION OF $60M MELBOURNE AIRPORT EXPRESS ROAD
Contractor Seymour White is set to start construction on the $60 million project linking the Tullamarine Freeway to the Terminal Four car park at Melbourne Airport.
The T4 express link will aim to make it faster for drivers to reach Terminal Four and is expected to carry 5000 vehicles per day when completed.
Melbourne Airport Chief Commercial Officer of Landside Access Lorie Argus said the airport was proud to invest in road access and cater to forecast passenger growth.
A further $260 million is earmarked for stage two of the road upgrade which may include a second elevated link to facilitate better connections to Terminals One, Two and Three.
“We’re focused on improving the traveller experience from freeway to runway and the elevated loop road is going to make it easier and faster for people to reach Terminal Four, which services Jetstar, Tigerair and REX travellers,” Ms. Argus said.
Melbourne Airport passenger numbers are predicted to grow from 37 million to 70 million people per year by 2038 and the new road will help to move traffic around the precinct efficiently.
“Our data shows that if we do not add more roads by 2025, drivers could be stuck in traffic for around 30 minutes on the doorstep of the airport,” Ms. Argus said.
“Our elevated loop road upgrades will future-proof Melbourne Airport for international and domestic traveller growth while reducing stress for passengers.”
Seymour Whyte CEO and Managing Director John Kirkwood said he was looking forward to working on the project to deliver the first stage of the airport’s major development plan.
“We are committed to ensuring that the project’s planned operational, social and economic benefits are achieved through innovative and sustainable solutions, and that we deliver a quality asset of longterm value for Melbourne Airport and the people of Victoria,” Mr. Kirkwood said.
INFRASTRUCTURE AUSTRALIA NOTES ENVIRONMENTAL CONCERNS IN 2020 PRIORITY LIST
Environmental changes headline the 2020 Infrastructure Priority List released by Infrastructure Australia. The latest Priority List presents 147 infrastructure proposals of national significance, the most since the list’s inception.
The list introduces five new high-priority national initiatives covering water, the nation’s rapidly growing waste problem, coastal inundation and road maintenance.
Infrastructure Australia Chief Executive Romilly Madew said the Infrastructure Priority List reflects both the diversity and urgency of the nation’s future infrastructure needs.
“Resilience was a key theme of our 2019 Australian Infrastructure Audit and this focus continues to be reflected in our latest edition of the Infrastructure Priority List,” Ms. Madew said.
“Compounding issues of unprecedented infrastructure demand, severe drought and other environmental changes require a focus on our resilience strategies and a consensus on where to invest now for our nation’s future prosperity.”
Infrastructure Australia specifically identified a new high-priority initiative for a
The latest edition presents 147 infrastructure proposals of national significance.
national water strategy and a town and city water security strategy.
The report notes that demand for water systems is increasing and the water cycle is being altered by changing climate, changes to run-off and evaporation due to land and forest management.
“In response to this call to action, we’re expecting a range of solutions to be considered for capturing, managing and distributing water, along with improvements in reporting and use of data in the water sector,” Ms. Madew said.
Regional Australia also emerged as a focus of this edition of the Infrastructure Priority List with a call to improve mobile telecommunications coverage in remote areas and improve regional road safety.
“Truly staying connected requires not only safe and efficient transport options, but also ensuring our towns and regional communities have the same access to telecommunications as the rest of Australia. This is to also provide people with reliable access to electronic payment systems, emergency alerts and other critical services,” Ms. Madew said.
In total, the latest edition of the Priority List identifies a project pipeline worth more than $58 billion.
It is a collaborative document developed using data from the 2019 Australian Infrastructure Audit and submissions from government, industry and the community.
“The Priority List has a strong record of driving national investment and has become a key reference point for all levels of government,” Ms. Madew said.
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