Federal budget 2011/12

[ozbob]

From the Sydney Morning Herald click here!

Budget curbs on company cars, defence jobs

Budget curbs on company cars, defence jobs
May 6, 2011 - 1:09AM

The fringe benefits tax (FBT) concession on company cars is set to be scaled back in the federal budget, resulting in a saving for the government of $950 million over four years.

The Gillard government will remove the FBT rule, which favours those who drive company cars for private use when they clock up more travel annually, Fairfax Media reports.

The Henry tax review had recommended that the different tax rates currently applying to half a million cars bought on salary sacrifice be replaced with a single 20 per cent FBT rate.

That would mean all taxpayers get the same level of concession regardless of the annual distance travelled, and it would end the drive to rack up the kilometres to obtain a lower FBT rate.

Greens leader Bob Brown last month released Treasury figures showing the government could save almost $1 billion over five years if it slashed the FBT concession.

Meanwhile, 1000 civilian jobs are expected to be cut from the Defence Department in the budget as the government attempts to save aother $60 million a year.

News Ltd says military jobs will not be affected, and the government hopes a broad staff freeze and natural attrition will mean only small numbers of voluntary redundancies are needed to meet the target by 2013/14.

After recent record funding, Defence is expected to do it tough in this year's budget as the government moves to return to surplus by 2012/13 as promised.

Defence Minister Stephen Smith has said the government wants his department to make a contribution to the budget outcomes, consistent with the $20 billion, 10-year savings target for Defence's Strategic Reform Program approach.

Mr Smith is expected to announce on Friday another review of defence overheads to identify further savings.

He has given an assurance that troops will continue to be appropriately resourced in all operational commitments in Afghanistan, East Timor and Solomon Islands.

The defence budget reached a record $26.8 billion in 2010/11 - an increase of 3.6 per cent in real terms - but some analysts believe the headline defence budget figure for 2011/12 could be smaller.

© 2011 AAP

Yo!  A beginning ...   

[somebody]

Still they are reducing the tax bias to car based transport rather than completely eliminating it.

[Golliwog]

Still they are reducing the tax bias to car based transport rather than completely eliminating it.

I think though, the important bit is certainly removing the incentive to drive more km's to get a bigger discount.

[Fares_Fair]

Still they are reducing the tax bias to car based transport rather than completely eliminating it.

I think though, the important bit is certainly removing the incentive to drive more km's to get a bigger discount.

hello Golliwog,

hey look, we agree on something.  

Regards,
Fares_Fair.

[justanotheruser]

Still they are reducing the tax bias to car based transport rather than completely eliminating it.

it is a good start. Some people were lending their car to friends who were driving to victoria for holidays just to get the required distance.  Others would do extra laps around the block every day just to get that bit extra each day so near the end of the financial year they didn't have as many kms to go. So it will reduce those kinds of trips which is a good thing..

[Stillwater]

That's the glass half-empty argument.  The glass half-full argument is that the federal government is saving $950 million a year that it can but to other, more worthwhile things.  Normally, if the government wants to wind back something, it does so in stages to minimaise the interest group backlash.

Look at the carbon tax debate.  Introduce a price on carbon, then ramp up the price in future years.

[ozbob]

Sydney Morning Herald --> NSW is big winner in federal budget

[somebody]

Sydney Morning Herald --> NSW is big winner in federal budget

$840m for rail freight through northern Sydney and Newcastle?  I'm very interested in what that includes.  It is around the $770m (not sure what year dollars) to fix up Junee-Campbelltown with the Centennial, Wentworth and Hoare deviations.  Why shouldn't these be done first?

[justanotheruser]

Sydney Morning Herald --> NSW is big winner in federal budget

$840m for rail freight through northern Sydney and Newcastle?  I'm very interested in what that includes.  It is around the $770m (not sure what year dollars) to fix up Junee-Campbelltown with the Centennial, Wentworth and Hoare deviations.  Why shouldn't these be done first?

depends i suppose.  They may think syd to newcastle is more important or it may be a go for the vote thing.

[ozbob]

From the Brisbanetimes click here!

'Forget re-election, focus on recovery'

'Forget re-election, focus on recovery'
Tony Moore
May 9, 2011 - 7:03AM

Infrastructure spending would be the key to allow flood-ravaged southeast Queensland to recover in a planned way after tomorrow night's budget, local government leaders have said.

Ipswich Mayor Paul Pisasale said last night that it was time to focus on growth because for "too long we bring down budgets that are just about getting re-elected".

Ipswich was badly damaged in the January floods, with some 3000 homes inundated.

The federal government last year delivered $1.95 billion to fund the upgrade of the Ipswich Motorway, from Goodna to Dinmore, which should be finished in 2012.

Mayor Pisasale said this should be the catalyst for future growth in the Brisbane to Ipswich corridor.

"This budget has got to start addressing growth, the key issues that Australia needs," he said.

"If you start opening up regional cities like Ipswich, what that is going to do is take pressure off the capitals."

Earlier this week, Population and Sustainability Minister Tony Burke said he wanted to use Tuesday's budget to encourage businesses to settle on the fringe of cities, including Brisbane.

Mr Burke said his plan was to try and tackle congestion by persuading people to live closer to their workplace.

"In the dormitory suburbs outlying from Brisbane, for example, there is a consequence of having suburbs where there is a very high degree of residential [areas] and very little commercial and industrial zoning."

The new Richlands rail station on Brisbane's western fringe - and part of the link from Darra to Springfield - has already encouraged new commercial development.

The new mega-city of Ripley has been set aside by the Queensland Government to deal with population growth, which has begun to slow in the state for the first time in about six years.

Brisbane's lord mayor Graham Quirk said he questioned the federal government's "scatter-gun" approach to growth.

Brisbane City Council has focused our planning efforts on concentrating growth around regional business centres and inner city areas where transportation options are strong," he said.

"This also reduces traffic congestion because they minimise the need for long motor vehicle journeys by people to access retail, commercial and serviced based industries."

Cr Quirk said the federal government could do more to ease congestion in southeast Queensland by putting more money into roads and public transport from the petrol excise tax.

"In Brisbane for example, BCC has responsibility for 95 per cent of the Brisbane road network. Both the state and federal government share responsibility for the other 5 per cent of Brisbane roads."

Southeast Queensland expects help to cope with the floods and cyclones in early 2011 in Tuesday's budget.

Federal Budget - what we know already

    Fringe benefits tax will be trimmed back on company cars;
    Tradesman will be able to write off $5000 on a car from 2012-13;
    pensioners on the full benefit to get a free set-top device to link to a digital TV;
    $79 able to be claimed for school uniforms from July 1;
    No income tax cuts this year;
    Deficit of around $56 billion, surplus predicted by 2012-13;
    Parents of teenagers between 16 and 19 will get around $3000 extra in family tax payments, and;
    Best teachers will be eligible for an extra $8000, but not until 2014;
    an extra $335 million for Queensland roads by 2014, with $200 million extra for the Bruce Highway around Townsville, Mackay and Central Queensland, and;
    Later this year, around July, details of how the carbon tax will affect households.


Read more: http://www.brisbanetimes.com.au/queensland/forget-reelection-focus-on-recovery-20110509-1eejw.html#ixzz1Lnimhmuh

[ozbob]

Treasurer's Economic Note  --> here!

[ozbob]

The Conversation --> Honk your horn: the fringe benefits tax is changing

[ozbob]

http://www.brisbanetimes.com.au/business/federal-budget

Live 7.30pm (EST)

Budget documents will be available here --> http://www.budget.gov.au/

     alternates if meltdown --> http://budget.australia.gov.au/

                                    --> http://www.finance.gov.au/publications/commonwealth-budget/2011-12/

                                    --> http://www.aph.gov.au/budget/

:bi

[ozbob]

Nation Building — rail infrastructure — Moreton Bay Rail Link

Expense ($m)    2010‑11    2011‑12    2012‑13    2013‑14    2014‑15
Department of the Treasury    ‑    30.0    20.0    83.0    ‑192.0
Department of Infrastructure and Transport    ‑    ‑    ‑    ‑    ‑
Total    ‑    30.0    20.0    83.0    ‑192.0
Related capital ($m)                
Department of Infrastructure and Transport    ‑    ‑    ‑    ‑    ‑
Department of the Treasury    ‑    ‑    ‑    ‑    ‑
Total    ‑    ‑    ‑    ‑    ‑

The Government will bring forward funding of $133.0 million for the Moreton Bay Rail Link project from 2014‑15 to be spent from 2011‑12 to 2013‑14. The $1.15 billion project is jointly funded by the Australian Government ($742.0 million), the Queensland Government ($300.0 million) and Moreton Bay Regional Council ($105.0 million). Construction of the project is expected to begin in 2012 and be completed by 2016. The Commonwealth's contribution was to have been paid from 2014‑15. The funding includes $59.0 million in 2015‑16.

This measure delivers on the Government's election commitment.

http://www.finance.gov.au/publications/commonwealth-budget/2011-12/2011-12/content/bp2/html/bp2_expense-15.htm

[ozbob]

http://www.infrastructure.gov.au/department/statements/2011_2012/media/index.aspx

Dept of Infrastructure and Transport

2011-12 Budget Media Releases

[ozbob]

MEDIA RELEASE
The Hon Anthony Albanese MP
Minister for Infrastructure and Transport
   
The Australian Coat of Arms
10 May 2011
BUDGET-INFRA 10/2011
Queensland Continues To Benefit From Record Investment

The 2011-12 Budget continues the rollout of the Gillard Government's record capital works program which is renewing and expanding Queensland's road, rail and public transport infrastructure.

In this Budget, the Government will provide $335 million in new funding over the six-year life of the existing Nation Building Program (2008-09 to 2013-14).  This brings our total transport related infrastructure investment in the state to $8.5 billion.

This coming financial year alone, we will be providing $1.2 billion to start, progress or complete a long list of projects - see below.

The new funding allocated in the 2011-12 Budget will be used to:

    Guarantee the timely delivery of the new Moreton Bay Rail Link in Brisbane's northern suburbs.  Instead of 2014-15 as stated prior to last year's general election, the first instalment of Federal funding for this project will now be delivered in 2011-12 - Federal contribution: $742 million;
    Undertake the Mackay Ring Road Study - 2010 Election Commitment; commencing in 2011-12*;
    Complete the remaining section of the Townsville Ring Road - 2010 Election Commitment; planning work commencing in 2011-12*;
    Upgrade of the intersection between the Bruce and Capricorn Highways - 2010 Election Commitment; construction work commencing in 2011-12*;
    Build the Gladstone Port Access Road - 2010 Election Commitment; planning work commencing in 2011-12*;
    Construct a new interchange along the Warrego Highway at Blacksoils - 2010 Election Commitment; construction work commencing in 2011-12*;
    Upgrade the Peak Downs Highway - 2010 Election Commitment; planning work commencing in 2011-12*;

    * Project being delivered as part of the existing Nation Building Program using funding from the Regional Infrastructure Fund (RIF).

Using savings from within the existing Nation Building Program, the 2011-12 Budget also reinstates the five Bruce Highway projects deferred as part of our initial response to Queensland's unprecedented string of natural disasters.

This decision was taken following advice from the Queensland Government that it had the capacity to complete both the reconstruction activities as well as deliver the long term upgrades vital to making the Bruce Highway a better, safer and less flood prone road.

The reinstated projects are:

    Duplicating the highway between Vantassel Street and Flinders Highway - Federal contribution: $110 million;
    Realigning and raising the highway between Sandy Corner and Collinsons Lagoon - Federal contribution: $50 million;
    Safety improvements at the Burdekin Road intersection - Federal contribution: $25 million;
    Realigning the highway north of Gin Gin between Cabbage Tree Creek and Carmen Road as well as at Back Creek Range to provide a wider road surface on flatter grades - Federal contribution: $100 million;
    Upgrading the interchanges along the highway between Caboolture and Caloundra - Federal contribution: $195 million.

In addition to those identified above, work will start on the following major projects during the coming financial year (2011-12):

    Realigning and widening the Bruce Highway through Cairns' southern suburbs between Ray Jones Drive and Sheehy Road - Federal contribution: $150 million;
    Upgrading the intersection between Mains and Kessels Roads in the Brisbane suburb of Macgregor - Federal contribution: $300 million.

At the other end of the construction cycle, work is expected to be completed on the following projects over the next 12 months:

    Widening the Pacific Motorway from four to six lanes between Nerang (Exit 73) and Worongary (Exit 77) plus safety improvements on the Worongary interchange - Federal contribution: $79 million;
    Upgrading the Pacific Motorway's Robina Interchange (Exit 82) - Federal contribution: $30 million;
    Upgrading and widening a 2.5 kilometre section of the Gateway Motorway between Springwood South and Daisy Hill (Section B) - Federal contribution: $210 million;
    Upgrading and straightening the Bruce Highway heading south out of Sarina - Federal contribution: $10 million;
    Erecting a new wider and higher bridge along the Bruce Highway over the Isis River as well as straightening and upgrading the approaches to it - Federal contribution: $25 million;
    Sealing 15 kilometres of the Peninsula Development Road between Lakeland and Laura plus completing minor works on creek crossings north of Laura - Federal contribution: $15 million;
    Upgrading of the Northern Peninsula Road to improve access - Federal contribution: $1.55 million;
    Upgrading of the Kowanyama Community Access Road - Federal contribution: $0.8 million; and
    Reconstruction works on the Nambour Bypass section of the Bruce Highway - Federal contribution: $35 million

We will also continue funding a range of initiatives designed to make our highways and local roads safer:

    $17.1 million to eliminate another 44 dangerous black spots on local roads;
    $5.6 million for rest stops and the other roadside facilities used by truck drivers.

The 2011-12 Budget also provides $194.8 million to assist Queensland's councils maintain and upgrade their local roads.

Since being elected a little over three years ago, this Labor Government's infrastructure priorities have been all about positioning Queensland to take full advantage of the next resources boom as well as tackling congestion across the state's South East Corner.

From Cape York in the north to the Gold Coast in the south, the Gillard Government is putting in place the modern, well-planned infrastructure critical to making Queensland even more prosperous and its economy even more productive.

===================================

[ozbob]

MEDIA RELEASE
The Hon Anthony Albanese MP
Minister for Infrastructure and Transport
   
The Australian Coat of Arms
10 May 2011
BUDGET-INFRA 02/2011
Joint Media Statement
The Hon Anthony Albanese MP
Minister for Infrastructure and Transport    
   
Wayne Swan
Deputy Prime Minister and Treasurer
Delivering the infrastructure Australia needs

The Gillard Government will implement a reform package to strengthen Infrastructure Australia (IA) and drive lasting improvements to the way our nation plans, finances and builds the infrastructure it needs to compete in the 21st century.

The package improves the governance structure of IA, encourages private investment in infrastructure, and improves transparency in the national infrastructure market.

A stronger Infrastructure Australia:

    IA's funding will be increased by nearly 40 per cent to $36 million over four years.
        This extra funding will allow IA to expand its work to include providing independent policy advice on national infrastructure reform such as the National Port and Freight Strategies, while working with governments and the private sector to develop a deeper 'pipeline' of priority infrastructure projects in the Australian market.
    A revamped governing council for IA will strike the balance between experience and renewal (Attachment A).
    The reform will give IA greater independence and financial autonomy.
    IA will produce an enhanced list of priority projects, focusing on those projects worth over $100 million or those of national significance and value.
    The Government's Statement of Expectations provided to Infrastructure Australia is at Attachment B.

Reforms to promote private investment in infrastructure:

    The Government will remove impediments to private sector investment in infrastructure by establishing tax provisions for infrastructure projects designated to be of national significance (Attachment C).
    New infrastructure investment incentive measures will encourage private and superannuation sector investment up to a cap of $25 billion by removing impediments in the tax system to invest in projects listed on IA's National Priority List.
    Losses generated by designated infrastructure projects will be exempt from the Continuity of Ownership Test and the Same Business Test, and uplifted at the government bond rate. Consultation will be undertaken regarding the implementation of this reform.
    IA will establish an Infrastructure Financing Group of private and public sector advisers to identify further areas for work around private financing of infrastructure.
    The Government will also continue to lengthen the Commonwealth Government Securities yield curve incrementally, when prudent to do so. This could help the financing of long term infrastructure projects. 

Greater transparency and investor confidence:

    Information about IA's assessments of projects will be published including cost-benefit analyses.
    A National Infrastructure Construction Schedule will be established to provide information on major infrastructure construction across all levels of government and help build the national pipeline.
    The Australian Government will work with States and Territories to improve approaches to managing forecasting and patronage risk for infrastructure projects such as toll roads.

Infrastructure Australia Achievements

In just over three years, the Labor Government has reversed more than a decade of neglect and underinvestment in Australia's infrastructure.

IA has achieved significant productivity reform outcomes, including:

    The first ever audit of the nation's infrastructure and first national infrastructure priority list. The Labor Government has funded 8 of 10 'priority' projects and 6 'pipeline' projects on IA's first priority list from the Building Australia Fund.
    The first national PPP policy, to make it easier and cheaper for the private sector to partner with governments.
    A national response to the review of barriers to competition and efficiency in PPP procurement.
    The first ever national ports strategy, with implementation arrangements being considered by COAG this year, and work underway on the first ever national freight strategy aimed at developing a truly national freight transport network.

Spending on the nation's roads, railways, power stations and water storage facilities is now nearly 40 per cent higher in real terms than it was during the last full year of the Howard Government.

ATTACHMENT A: A RENEWED INFRASTRUCTURE AUSTRALIA COUNCIL

As part of its comprehensive package of investment and financing reforms the Government has taken steps to renew and strengthen the Infrastructure Australia Council.

I welcome Ms Elana Rubin, Cr Nicole Lockwood and Dr Martin Parkinson, the three new members of the Council.

New and reappointed Council members are:

1. Sir Rod Eddington - Sir Rod is the Chairman of Infrastructure Australia. Sir Rod is currently non-executive Chairman (Aust & NZ) of JPMorgan as well as Chairman of the Alfred Foundation, the Hackett Foundation, and the Victorian Major Events Company. Sir Rod also holds a number of non-executive directorships.

2. Mr Terry Moran, AO - Mr Terry Moran, AO currently holds the position of Secretary, Department of the Prime Minister and Cabinet. Mr Moran has previously been the head of Victoria's Department of Premier and Cabinet and Chief Executive of the Victorian State Training Board.

3. Dr Martin Parkinson, PSM - Dr Parkinson is Secretary to the Treasury. He was previously Secretary of the Department of Climate Change and Energy Efficiency.  He is a member of the Board of the Reserve Bank of Australia, Board of Taxation and the Council of Financial Regulators.  Dr Parkinson is also the Chair of the Standard Business Reporting Board and the Advisory Board of the Australian Office of Financial Management.

4. The Hon Mark Birrell - The Hon Mark Birrell's current position is Chairman of Infrastructure Partnerships Australia. The Hon Mark Birrell was previously National Leader of the Infrastructure Group at Minter Ellison Lawyers and served as a Cabinet Minister in Victoria, including as Minister for Major Projects.

5. Professor Peter Newman - Peter Newman is the Professor of Sustainability at the Sustainability Policy Institute, Curtin University. Professor Newman has previously been the Sustainability Commissioner in Sydney, advising the government on planning issues, and a Councillor in the City of Fremantle.

6. Ms Heather Ridout - Ms Heather Ridout is currently the Chief Executive of the Australian Industry Group. Ms Ridout was previously Chair of the Population Strategy Taskforce, and the NSW Industry Capability Network and is Director of the AustralianSuper Trustee Board.

7. Mr Phil Hennessy -Mr Hennessy is currently Queensland Chairman of KPMG. Mr Hennessy is also Chair of the Mater Hospital Foundation, and Seqwater. In his professional capacity, Mr Hennessy has been involved in providing advice in relation to infrastructure in Queensland.

8. Ms Elana Rubin - Ms Rubin is currently Chair of AustralianSuper and has expert knowledge in finance and investment.  Ms Rubin is also the Chair of the Victorian WorkCover Authority (WorkSafe) and was previously Executive Director for Investments for the Australian Retirement Fund and a Board member of the Victorian Rail Track Corporation.

9. Cr Nicole Lockwood - Cr Lockwood is currently the President of the Shire of Roebourne in Western Australia. Cr Lockwood is also a Board Director on the Horizon Power Board, a Commission Member on the Pilbara Development Commission, and a Commission Member of the Western Australian Planning Commission

10. Mr Jim Hallion - Mr Hallion is currently the Chief Executive of the Department of Transport, Energy and Infrastructure, South Australia. Mr Hallion is a member of the Australian Logistics Council, the Australian Road Forum, the Standing Committee on Transport and the Transport Agencies Chief Executives Forum

11. Dr Kerry Schott - Dr Schott is currently Managing Director and Chief Executive Officer of Sydney Water. Dr Schott was previously the Deputy Secretary of NSW Treasury and a non-executive director of the Sydney Water Board as well as holding a number of senior corporate advisory positions.

12. Mr Anthony Kannis - Mr Kannis is currently the Executive Director, Infrastructure and Finance, Department of Treasury and Finance, Western Australia. Mr Kannis has held a number of senior positions across the Department of Treasury.


ATTACHMENT B: IA STATEMENT OF EXPECTATIONS LETTER

Sir Rod Eddington
Chair
Infrastructure Australia
GPO Box 594
Canberra ACT 2601

Dear Sir Rod

STATEMENT OF EXPECTATIONS

I am writing to record my appreciation for Infrastructure Australia's (IA) work to date under your Chairmanship and to outline for you the Gillard Government's forward agenda for infrastructure.

Since IA was established in 2008 it has transformed the approach to national infrastructure policy in Australia. Groundbreaking work has been done to develop an annual Priority List of infrastructure projects, conduct the first ever national audit of infrastructure, establish a national Public-Private Partnership policy and guidelines, and develop landmark national port and freight strategies. These are worthy policy achievements that will build economic productivity and wellbeing in Australia.

Through this work, and in the context of the global financial crisis, IA has established itself as an important source of advice for all levels of government, industry and the private sector, and has helped deliver important outcomes across the transport, water, energy and communication sectors.

The Government believes the work of IA must continue, and its capacity should be enhanced. I am pleased to inform you that the Government will boost the budget of IA by nearly 40 per cent over the next four years, to $9 million each year. In addition to this increase, we will provide IA with greater financial independence and accountability commensurate with its independent advisory status enshrined in the Infrastructure Australia Act 2008.

With increased capacity comes a renewed mandate to lead on national infrastructure reform and to modernise Australia's infrastructure. It is my expectation that Infrastructure Australia will continue developing a strategic view of the nation's immediate and long term infrastructure needs.

The Building Australia Fund will continue as an investment fund for major projects. However, as the global economy emerges from the global financial crisis and the Government's fiscal settings tighten, a renewed emphasis on private sector investment is important, and our focus ought to be on ensuring government policy settings promote competitive and efficient investment across both the private and public sectors.

This Statement is the second that I have issued for IA and is intended to guide the Council's deliberations through the next period of funding. Infrastructure Australia will work with states and the private sector to develop a forward program that takes into account:

IA's strategic role

A key challenge facing Australia is the imperative to lift economic productivity to ensure Australia's economy remains globally competitive and builds wealth and quality of life for all Australians. Economic infrastructure is a vital enabler of a strong and productive economy.

The Government established Infrastructure Australia to bring national leadership to infrastructure development and a strategic approach to planning and financing that enhances value-for-money offerings of Australia's infrastructure assets.

This should remain at the heart of IA's responsibilities. Looking ahead, the Government expects that IA will develop a greater 'top-down' approach, developing a deeper National Priority List that looks beyond individual proposals from jurisdictions. To underscore this strategic role, the Council should consider projects above a threshold of $100 million except in relation to Regional Infrastructure Fund projects and projects that are flagship or demonstrate unique national interest qualities.

As a first step, it would be timely for IA to update its analysis in 2011 of the nation's infrastructure priorities against the seven priorities identified in the 2008 audit. These priorities are a national broadband network, creation of a true national energy market, competitive international gateways, a national rail freight network, adaptable and secure water supplies, transforming our cities and providing essential indigenous services. It is important that these priorities are informed by future forecasts and would ideally flow from a biennial audit of the nation's infrastructure needs and gaps.

IA should work closely with states and territories and the private sector to promote opportunities for private sector participation, including options to encourage long-term equity partners such as superannuation funds, encourage best practice PPP procurement, and advise on risk allocation.

To support these goals, IA should develop transparency and investor confidence in the infrastructure market by publishing project assessments and cost-benefit analyses, except where project information is commercially sensitive or confidential.

The Regional Infrastructure Fund

The Government's Regional Infrastructure Fund (RIF) is a major new initiative that will provide an ongoing funding stream for economic infrastructure, subject to the passage of the Minerals Resource Rent Tax legislation. The Government has made commitments to progress eight important infrastructure projects from an initial funding injection in the RIF.

IA has an important role in shaping this initiative. Specifically, I ask that IA work with governments, communities and the resources sector to identify long-term infrastructure needs and to assess economic infrastructure projects against RIF criteria and having regard to IA's Reform and Investment Framework which provides for assessments and cost benefit analyses. The $100 million threshold for consideration of projects does not apply to the RIF Program.

Infrastructure financing and taxation

In the 2011 Budget, the Government has announced the Infrastructure Investment Incentive Package, to encourage private sector investment in the IA Priority List.

Specifically, the package removes the application of the Continuity of Ownership Test and the Same Business Test and uplifts early stage losses by the government bond rate for priority projects assessed as 'ready to proceed' or 'threshold'. The package is designed to encourage private investment in up to $25 billion of projects designated from the time of Royal Assent to 30 June 2017.

The Government will undertake detailed consultations with industry over the next few months to finalise the package, including the development of appropriate legislation and governance arrangements. I ask that IA be closely involved in this process.

I also welcome the establishment by Infrastructure Australia of an Infrastructure Financing Group of senior private and public infrastructure finance decision-makers to identify further areas for work on private financing reforms.

It would further enhance IA's national priority list if IA were to identify where projects could be privately financed, where user charges might be considered as a means of project funding, and where alternative financing models are appropriate.

IA's Work Plan

The following matters are of particular importance to IA's development of a long term, integrated approach to infrastructure investment:

    National Infrastructure Pipeline - developing a deeper pipeline of quality infrastructure projects in Australia, and enhancing the priority list through a more active approach to developing infrastructure proposals that address infrastructure gaps and bottlenecks and long-term infrastructure needs.
    Private investment in infrastructure - further refining the National Public Private Partnership Policy and Guidelines, promoting best practice PPP procurement and options for private and superannuation sector investment, and identifying reforms to increase competition in project financing.
    Alternative funding sources - investigating and developing more efficient pricing approaches for infrastructure that are fair and sustainable.
    Ports Strategy - continue to work through COAG to finalise the National Ports Strategy Implementation Plan, and assist jurisdictions to develop 50 year plans for major ports, identifying sea and land side impediments and how they should be addressed.
    National Land Freight Strategy - finalise the National Freight Strategy for COAG in 2011, in consultation with public and private sector bodies. Develop an implementation plan aimed at creating a seamless, national freight network, increasing Australia's competitiveness, lowering costs and minimising congestion on our road and rail networks.
    Water Reform - continuing work on strategies to deliver improved water quality and security in regional Australia and our major cities, in consultation with communities and local councils.
    Urban development - develop approaches for using infrastructure as a catalyst for more sustainable and productive patterns of urban development.
    Indigenous infrastructure - investigating how the infrastructure needs of indigenous communities can be better met, and developing strategies accordingly.
    Public Transport Strategy - develop a strategy aimed at improving service standards through better use of existing infrastructure and investment in new infrastructure.
    Identifying corridors and buffers - working through the Infrastructure Working Group, in consultation with the Department for Infrastructure and Transport, to review practices around the planning and protection of corridors for future infrastructure networks.
    Smart infrastructure and a National Smart Managed Motorways Trial (part of the National Urban Policy). This work should examine the potential benefits of Intelligent Transport Systems and other smart infrastructure to cut emissions, reduce travel time, and optimise use of existing assets to free government resources for more productive use;
    Develop and lead strategies on 'asset sweating' through the Infrastructure Working Group to maximise existing infrastructure and increase their efficiency and performance; and
    Advise on the economic and environmental implications of major infrastructure projects within a carbon constrained economy.

Engagement across governments

IA's ability to work across governments is central to its promotion of national infrastructure priorities.

IA should continue to provide an annual report to the Council of Australian Governments (COAG) on its work, or as requested by COAG or the Commonwealth Minister for Infrastructure and Transport. IA's reports to COAG will continue to be conveyed through the Commonwealth Minister for Infrastructure and Transport, who will be the Chair of the new Standing Council on Transport and Infrastructure (SCOTI).

I have asked the Secretary of my Department to continue engaging closely with the Council on key national projects, including the delivery of the Nation Building program and the planning studies underway on High Speed Rail and the Sydney Aviation Strategy.

Statement of intentions

I would appreciate a statement from the Council in due course of Infrastructure Australia's priorities moving forward, including your delivery and performance milestones.

Once again, I congratulate you and the Members of the IA Council on your appointments and thank you for your ongoing commitment. I look forward to working with you as the Council continues its vital contribution to the development of Australia's infrastructure.

Yours sincerely,

ANTHONY ALBANESE


ATTACHMENT C: INFRASTRUCTURE INVESTMENT INCENTIVE PACKAGE

The Gillard Labor Government will introduce a new tax incentive designed to remove impediments in the tax system that discourage private investment in infrastructure projects.

This targets the concerns raised by investors that early stage tax deductions might never be used due to changes of ownership, or if used will have declined in value due to inflation and the time value of money.

The Government will establish special tax provisions for infrastructure projects designated to be of national significance. Losses generated by designated infrastructure projects will be exempt from the Continuity of Ownership Test and the Same Business Test and will be uplifted at the government bond rate.

A decision maker will be empowered to confer designated infrastructure project status on privately financed public infrastructure of national significance based on a range of criteria, including a global capital expenditure cap of $25 billion over the period from Royal Assent of the enabling legislation to 30 June 2017.

The selection criteria to be applied by the decision maker, and other design issues, will be the subject of further consultation.

This measure will ensure that access to losses within a designated infrastructure project is certain and that the value of those losses is maintained.

URL: http://www.minister.infrastructure.gov.au/aa/releases/2011/May/budget-infra_02-2011.htm

[ozbob]

MEDIA RELEASE
The Hon Anthony Albanese MP
Minister for Infrastructure and Transport
   
The Australian Coat of Arms
10 May 2011
BUDGET-INFRA 08/2011
NSW Continues To Benefit From Record Investment

The 2011-12 Budget continues the rollout of the Gillard Government's record capital works program which is renewing and expanding New South Wales' road and rail infrastructure.

In this Budget, investment over the six-year life of the existing Nation Building Program (2008-09 to 2013-14) will increase by $339 million. This brings our total transport related infrastructure investment in the state to a record $12.1 billion.

This coming financial year alone, we will be providing $2.4 billion to start, progress or complete a long list of large and smaller scale projects.

The new funding allocated in the 2011-12 Budget will be used to:

    Further accelerate the duplication of the Pacific Highway, with an extra $1 billion to complete all the remaining planning along those sections where this has not already occurred as well as allow more construction to commence, including on the Frederickton to Eungai section (subject to a matching financial contribution from the NSW Government);
    Undertake the Scone Level Crossing Study - 2010 Election Commitment; planning to commence in 2011-12 with funding to come from the Regional Infrastructure Fund;
    Commission the Richmond Bridge Approaches Congestion Study - 2010 Election Commitment, with work to commence in 2011-12 using funding from within the allocation for the existing Nation Building Program;
    Commence planning work in 2011-12 on the Tenterfield Bypass and Bolivia Hill Upgrade along the New England Highway, with funding from within the allocation for the existing Nation Building Program.

In addition, work will start on the following major projects during the coming financial year (2011-12):

    Improving the freight rail network through Sydney's northern suburbs to Newcastle - Federal contribution: $840 million;
    Duplicating the Pacific Highway between Tintenbar and Ewingsdale - Federal contribution: $554.1 million;
    Duplicating the Pacific Highway at Devils Pulpit - Federal contribution: $62 million;
    Constructing the new Holbrook Bypass on the Hume Highway - Federal contribution: $220 million;
    Constructing the new Bega Bypass on the Princes Highway - Federal contribution: $68 million.

At the other end of the construction cycle, work is expected to be completed on the following projects over the next 12 months:

    Duplicating the Pacific Highway at Glenugie - Federal contribution: $54 million;
    Targeted safety upgrades at Mt Victoria along the Great Western Highway - up to $30 million;
    Realigning the Barton Highway at Gounyan Curves as part of a broader safety package for the road - Federal contribution: $36.5 million;
    Constructing the new north Orange Bypass - Federal contribution: $10 million.

We will also continue funding a range of initiatives designed to make our highways and local roads safer:

    $24.1 million to eliminate another 95 dangerous black spots on local roads;
    $7.1 million for rest stops and the other roadside facilities used by truck drivers.

The 2011-12 Budget also provides $289 million to assist NSW councils maintain and upgrade their local roads.

Since being elected a little over three years ago, this Labor Government's infrastructure priorities have been about reversing the neglect we inherited so as to make the NSW economy even more prosperous as well as tackling the worsening congestion in and around Sydney.

[ozbob]

MEDIA RELEASE
The Hon Anthony Albanese MP
Minister for Infrastructure and Transport
   
The Australian Coat of Arms
10 May 2011
BUDGET-INFRA 09/2011
Victoria Continues To Benefit From Record Investment

The 2011-12 Budget continues the rollout of the Gillard Government's record capital works program which is renewing and expanding Victoria's road, rail and public transport infrastructure.

This coming financial year alone, the Government will be provide $1.1 billion to progress a long list of large and smaller scale projects.

We want a Victoria that's built to compete.

During 2011-12, work will start on the following major projects (Commonwealth contribution shown):

    Improving rail access to the Altona Intermodal facility - Federal contribution: $32 million;
    Constructing the new Somerton Intermodal facility - Federal contribution: $20 million;
    Widening of Clyde Road in Berwick to a four lane carriageway - Federal contribution: $30 million.

At the other end of the construction cycle, work is expected to be completed on the following projects over the next 12 months:

    Extending the Geelong Ring Road (4A) over the existing Princes Highway West and along Anglesea Road - Federal contribution: $62.5 million;
    Strengthening and capacity works on the West Gate Bridge - Federal contribution: $120 million;
    Realigning the Western Highway at Anthonys Cutting between Melton and Bacchus Marsh - Federal contribution: $160 million;
    Building the Nagambie Bypass along the Goulburn Valley Highway - Federal contribution: $177.6 million;
    Constructing a new  interchange at the intersection between Kings Road and the Calder Freeway - Federal contribution: $25 million;
    Modernising the rail lines at Geelong Port - Federal contribution: $50 million;
    Constructing the new Wimmera Intermodal facility at Dooen - Federal contribution: $6.5 million.

We will also continue funding a range of initiatives designed to make our highways and local roads safer:

    $17.6 million to eliminate another 60 dangerous black spots on local roads;
    $6.5 million for rest stops and the other roadside facilities used by truck drivers.

The 2011-12 Budget also provides $207.2 million to assist Victoria's councils maintain and upgrade their local roads.

Across Victoria, the Gillard Government is reversing the neglect we inherited and begun putting in place the modern, well-planned infrastructure critical to making the State even more prosperous and its economy even more productive.

[ozbob]

MEDIA RELEASE
The Hon Anthony Albanese MP
Minister for Infrastructure and Transport
   
The Australian Coat of Arms
10 May 2011
BUDGET-INFRA 11/2011
South Australia Continues to Benefit from Record Investment

The 2011-12 Budget continues the rollout of the Gillard Government's record capital works program which is renewing and expanding the State's road, rail and public transport infrastructure.

This coming financial year alone, we will be providing $585.4 million to progress a long list of large and smaller scale projects.

During 2011-12, work will continue on the following major projects (Commonwealth contribution shown):

    Constructing the South Road Superway - Federal contribution:
    $430 million;
    Targeted safety upgrades, including additional overtaking lanes and rest stops, along the Dukes Highway - Federal contribution: $80 million;
    Modernising and electrifying the Gawler Rail Line - Federal contribution: $293.5 million;
    Extending the rail line from Noarlunga to Seaford - Federal contribution: $291.2 million.
     

We will also continue funding a range of initiatives designed to make our highways and local roads safer:

    $4.7 million to eliminate another 25 dangerous black spots on local roads;
    $5.0 million for rest stops and the other roadside facilities used by truck drivers.

The 2011-12 Budget also provides $84.1million to assist South Australia's councils maintain and upgrade their local roads.

Since being elected, this Labor Government's infrastructure priorities have been about positioning the State to take full advantage of the next resources boom.

In a little over three years, we have successfully reversed the neglect we inherited and begun putting in place the modern, well-planned infrastructure critical to making South Australia even more prosperous and its economy even more productive.

[ozbob]

MEDIA RELEASE
The Hon Anthony Albanese MP
Minister for Infrastructure and Transport
   
The Australian Coat of Arms
10 May 2011
BUDGET-INFRA 13/2011
WA Continues to Benefit from Record Investment

The 2011-12 Budget continues the rollout of the Gillard Government's record capital works program which is renewing and expanding Western Australia's road, rail and public transport infrastructure.

In this Budget, we will increase the investment over the six-year life of the existing Nation Building Program (2008-09 to 2013-14) by $179.4 million to a record $3.7 billion - almost twice what the former Howard Government invested over a similar period of time in Western Australia

This coming financial year alone, we will be providing $920.5 million to start, progress or complete a long list of large and smaller scale projects.

The new funding will go to the State Government's 'WA Gateway' project, an extensive upgrade of the road network around Perth Airport and the nearby industrial estates (Federal contribution: up to $480 million with funding to come from the Regional Infrastructure Fund).

In addition, work will start on the following major projects during the coming financial year (2011-12) (Commonwealth contribution shown):

    Widening the Great Eastern Highway from four to six lanes between Kooyong Road and the Tonkin Highway - Federal contribution: $280 million;
    Realigning the Great Northern Highway at Port Hedland around the Wedgefield industrial area - Federal contribution: $154 million;
    Sinking the railway line through Perth's CBD, a central component of the visionary Perth City Link project which will reunite the City's retail district with the Northbridge entertainment precinct - Federal contribution: $236 million;
    Further extending the recently completed Bunbury Port Access Road and constructing the first stage of the Bunbury Outer Ring Road - Federal contribution: $118.6 million;
    Planning for the Kewdale Intermodal Rail Supply Chain and commencement of the construction of the first phase, a rail passing loop outside of Fremantle Port, part of the Perth Urban Transport and Freight Corridor Upgrade Project - Federal contribution: $350 million;
    Upgrading road and rail access to Esperance Port - Federal contribution: $60 million.

At the other end of the construction cycle, work is expected to be completed on the following projects over the next 12 months:

    Installing a grade separation at the intersection between Great Eastern and Roe Highways - Federal contribution: $48 million;
    Constructing two bridges to carry the Reid Highway over Alexander Drive and the construction of on/off ramps from Alexander Drive to the Reid Highway - Federal contribution: $10 million;
    Constructing a single carriageway on Hepburn Avenue between Beechboro Road North and Marshall Road - Federal contribution: $5 million;
    Upgrading and widening the Kwinana Freeway between Leach and Roe Highways, part of the Perth Urban Transport and Freight Corridor Upgrade Project - Federal contribution: $350 million;
    Upgrading the grain line rail between Avon and Albany (Stage 1) - Federal contribution: $30 million.

We will also continue funding a range of initiatives designed to make our highways and local roads safer:

    $7.5 million to eliminate another 46 dangerous black spots on local roads;
    $2.5 million for rest stops and the other roadside facilities used by truck drivers.

The 2011-12 Budget provides $152.1 million to assist West Australian councils maintain and upgrade their local roads.

Since being elected a little over three years ago, this Labor Government's infrastructure priorities in the West have been all about positioning the State to take full advantage of the next resources boom as well as tackling the worsening congestion in and around Perth.

From Port Hedland in the north to Bunbury in the south, the Gillard Government is reversing the neglect we inherited and begun putting in place the modern, well-planned infrastructure critical to making Western Australia even more prosperous and its economy even more productive.

[ozbob]

MEDIA RELEASE
The Hon Anthony Albanese MP
Minister for Infrastructure and Transport
   
The Australian Coat of Arms
10 May 2011
BUDGET-INFRA 12/2011
Tasmania Contiues to Benefit from Record Investment

The 2011-12 Budget continues the rollout of the Gillard Government's record capital works program which is renewing and expanding Tasmania's road and rail infrastructure.

This coming financial year alone, we will be providing $121 million to progress a number of large and smaller scale projects.

In 2011-12, work will start on the following major projects (Commonwealth contribution shown):

    Modernising the rail freight lines at Rhyndaston - Federal contribution: $24 million;
    Upgrading and modernising the Fingal Rail Freight Line - Federal contribution: $5.7 million;
    Upgrading and modernising the Boyer Rail Freight Line - Federal contribution: $1.1 million;
    Tasman Highway Ramps (planning work) - Federal contribution: $2 million.

At the other end of the construction cycle, work is expected to be completed on the following projects over the next 12 months:

    Upgrading the Illawarra Main Road - Federal contribution: $3.1 million.

We will also continue funding a range of initiatives designed to make our highways and local roads safer:

    $1.6 million to eliminate another 22 dangerous black spots on local roads;
    $700,000 for rest stops and the other roadside facilities used by truck drivers.

The 2011-12 Budget provides $46.4 million to assist Tasmania's councils maintain and upgrade their local roads.

Across Tasmania, the Gillard Government is reversing the neglect we inherited and begun putting in place the modern, well-planned infrastructure critical to making the State even more prosperous and its economy even more productive.

[Stillwater]

 Budget media statements:
http://www.minister.infrastructure.gov.au/aa/releases/2011/May/budget-infra_10-2011.htm
http://www.minister.infrastructure.gov.au/aa/releases/2011/May/budget-infra_02-2011.htm
http://www.minister.infrastructure.gov.au/aa/releases/2011/May/budget-infra_04-2011.htm

[ozbob]

MEDIA RELEASE
The Hon Anthony Albanese MP
Minister for Infrastructure and Transport
   
The Australian Coat of Arms
10 May 2011
BUDGET-INFRA 06/2011
Delivering Historic Transport Reforms

Australia's transport industry will benefit from major regulatory reforms, through a $25.3 million investment over two years in this Budget.

After more than a century of competing regulations and standards, this funding will move Australia closer to one set of modern, nation-wide laws covering maritime safety, rail safety and heavy vehicles.

Following their implementation in 2013, these reforms will improve safety, simplify the compliance task for transport operators and boost national income by up to $30 billion over the next 20 years. The number of regulators will be reduced from 23 to just three.

The new funding in the 2011-12 Budget builds on the $8.3 million provided in 2010-11 and will be used to complete the:

    Establishment of a new Brisbane-based national heavy vehicle regulator with responsibility for registration and aligning regulations applying to trucks and buses over 4.5 tonnes;
    Establishment of a new national rail safety regulator in Adelaide with oversight of the country's urban passenger rail networks and interstate freight operations.  The Australian Transport Safety Bureau (ATSB) will become the national investigator of rail accidents;
    Extension of the Australian Maritime Safety Authority's (AMSA) regulatory responsibilities to cover all commercial vessels, not just those involved in interstate and international trade.

These reforms will help to establish a seamless national economy, and will assist transport operators to keep supermarket shelves full and get our exports to overseas markets.

The funding in the Budget implements the reforms developed in cooperation with state and territory governments and formally approved by the Council of Australian Governments in December 2009.

[ozbob]

Apart from the MBRL,  not much for Queensland other than roads ..

As was known, NSW done a bit better, Victoria has been shafted to some extent as well.  SA support of for the electrification projects, WA sinking of rail in Perth ..

[ozbob]

http://www.finance.gov.au/publications/commonwealth-budget/2011-12/2011-12/content/download/ms_urban.pdf

OUR CITIES, OUR FUTURE
- A NATIONAL URBAN POLICY FOR A PRODUCTIVE, SUSTAINABLE AND LIVEABLE FUTURE

----------------------

More rhetoric and spin than reality ..

[ozbob]

Brisbanetimes --> Road funding tops Queensland rebuilding efforts

[ozbob]

Brisbanetimes --> Winners and losers

[Stillwater]

Not a bad budget -- lean, but not really mean.  Good bring-forward of funds for Kippa-Ring line.  (Allows the federal government to take up the strain in early years, when the state government was to have its funds in the project -- Qld is broke.  Changes in rules governing taxation and financing of major infrastructure could allow for greater private investment in CRR in exchange for rights to develop chunks of land in the corridor.  The roads funding is mainly funding what's underway or what was planned anyway, plus some works that were halted in response to the Global Financial Crisis.  The urban renewal document is good as far as it goes, while recognising that the heavy lifting in urban renewal is the responsibility of local and state governments.  That said, it could have been a bit more generous on the incentives for those levels to work together.  Possibility for Sunshine Coast Regional Council to grab some of the initiatives to redevelop Maroochydore CBD.  The IA investment is welcomed.  Allowing IA to investigate, independently, the benefits of some major projects gives hope to those pushing for Sunshine Coast Line upgrade.  Having IA public its benefit-cost analysis addresses the need for greater transparency in government.

[ozbob]

This budget is as tough as tofu ....  tofu is good for you but never seems to satisfy for long ....  it is crafty clever polyticks in a tough environment.

Yes, more transparency with IA and the big decisions is a good outcome.  CRR will stack up and it is time to get cracking ..

[ozbob]

From the Brisbanetimes click here!

Ipswich celebrates while Toowoomba misses out

Ipswich celebrates while Toowoomba misses out
Tony Moore
May 10, 2011 - 9:55PM

The lack of funding for a second Toowoomba range road crossing in the 2011 Federal Budget has been met with disappointment, while a road upgrade near Ipswich has been warmly welcomed by the city's mayor.

The Queensland Chamber of Commerce and Industry had identified the range crossing as its top budget priority when asked by brisbanetimes.com.au last week.

Speaking shortly after Treasurer Wayne Swan delivered his Budget speech, QCCI president David Goodwin said the decision not to invest in a new Toowoomba range crossing was "very disappointing".

"If we are going to see a significant return to growth we are going to need to invest in assets that are going to add to the productive capacity of the nation," he said.

"The Toowooomba range crossing is one such asset and I think the disappointment is that there is no early work or money for planning, or a commitment to that project in tonight's budget."

A new Toowoomba range crossing had been listed as a highway priority by the Queensland government and by the federal government's Infrastructure Australia.

The Budget included $300 million promised last year to upgrade the heavily-congested Kessels Road and Mains Road intersection in Nathan.

Mr Goodwin welcomed $54 million for an interchange at Blacksoil, near Ipswich, at the intersection of the Warrego and Brisbane Valley highways.

"I think that is well overdue and you have to welcome that one," he said.

Ipswich Mayor Paul Pisasale said the interchange funding was "absolutely fantastic".

"That is another vital piece of infrastructure for Ipswich," he said.

Infrastructure Minister Anthony Albanese promised in August 2010 that the Blacksoil interchange would go ahead.

Cr Pisasale said he was delighted the federal government had met its promise.

"It is the worst intersection on a highway in Australia," he said.

"There is so many accidents that happen there and it is going to be fantastic.

"That is not only good for Ipswich, it is good for everyone who is driving up to Toowoomba."

Infrastructure Partnerships Australia chief executive Brendan Lyon welcomed changes which make it more profitable for superannuation companies to invest in infrastructure projects.

"Under existing arrangements, the significant tax losses suffered in the early phase of a project's life are extinguished when a substantial change in ownership occurs, such as the sale of a project to a superannuation fund," he said.

"The new arrangements will protect and conserve the value of these losses, creating better incentives to engage superannuation funds in building Australia's backlog of projects.

"The tax reforms outlined tonight do not solve the entire problem of trapped tax losses, but they are a major step forward and a welcome acceptance of the issue."

Read more: http://www.brisbanetimes.com.au/queensland/ipswich-celebrates-while-toowoomba-misses-out-20110510-1ehgc.html#ixzz1LyPi9gQa

[ozbob]

Media release 11 May 2011

SEQ: Federal budget train gain amongst the strain and pain

RAIL Back On Track (http://backontrack.org) a web based community support group for rail and public transport and an advocate for public transport passengers welcomes the confirmation of funding being brought forward for the Moreton Bay Rail Link as confirmed in the 2011-12 Federal Budget(1).

Robert Dow, Spokesman for RAIL Back On Track said:

"We are in difficult times in a fiscal sense.  The delivery of the Federal Labor Government's election commitment in the budget to fund the Moreton Bay Rail Link is welcome (2)."

"RAIL Back On Track particularly welcomes changes to how Infrastructure Australia (IA) functions. Allowing IA to better investigate independently the benefits of major projects gives more certainty for projects such as a Sunshine Coast Line upgrade and particularly Cross River Rail.  Having IA make public cost-benefit analyses also helps address the need for greater transparency. The introduction of new tax incentives designed to remove impediments in the tax system that discourage private investment in infrastructure projects is also very welcome."

References:

1. http://www.budget.gov.au/

2. http://www.finance.gov.au/publications/commonwealth-budget/2011-12/2011-12/content/bp2/html/bp2_expense-15.htm

Contact:

Robert Dow
Administration
admin@backontrack.org

[ozbob]

From the Brisbanetimes click here!

No room for big-ticket projects

No room for big-ticket projects
Comment Adele Ferguson
May 11, 2011

OFFERING tax concessions to attract more private sector investment in the government's $450 billion worth of infrastructure projects and beefing up Infrastructure Australia is a good start but falls short of serious reform.

So does its key budget plank to create an army of workers by increasing skilled labour imports and giving companies incentives through a $558 million employment fund.

The fourth budget from Wayne Swan should be judged by the quality of spending decisions rather than whether it is going to make a surplus next year.

With a pipeline of big infrastructure projects noticeably absent from this budget, a decision to abstain from any serious tax breaks such as allowing companies to access tax losses in the early stages of project development, and a failure to properly address skilled labour shortages during the country's biggest ever mining boom, are the strongest indicators the Labor government's big bang nation-building agenda has stalled.

It seems the government's obsession with returning the budget to surplus has crippled its ability to invest in big-ticket infrastructure projects, or offer a set of tax incentives to attract the country's $1.3 trillion in super funds.

While this might not be a problem yet, when the mining boom hits its straps, the pre-global financial crisis bottlenecks that stymied exports, electricity outages and the billions of dollars wasted each year in congestion will be back.

So will wage inflation. The mining boom is already suffering from skilled labour shortages, fuelling wage inflation and price pressures.

As the boss of Infrastructure Partnerships Australia, Brendan Lyon, says: ''The government has outlined important and welcome organisational and regulatory reforms but the heavy lifting still needs to be done to get major projects moving.''

The so-called National Workforce Development Fund, launched last night, is designed to create 130,000 training places over four years, and a new enterprise migration agreement for large mining projects in return for a financial contribution to train Australians.

It will allow 16,000 skilled immigrants to enter Australia, but mining investment is projected to rise about eight times the level before the boom to $76 billion in 2011-12. At these levels, it won't touch the surface.

As the mining boom cranks up, it will get worse. The budget papers forecast a jobless rate of 4.5 per cent in 2013, which means mining companies will compete aggressively for labour, putting further pressure on wages and inflation.

On the infrastructure front, the best the government could do yesterday to capitalise on the mining boom was to boost Infrastructure Australia's budget by 40 per cent to $36 million over four years and offer some tax concessions on some key infrastructure projects.

Since the country's infrastructure backlog grew to about $32 billion last year, and more than $700 billion needs to be spent in the next 10 years to return the quality of infrastructure to a point that will sustain national prosperity, the latest reform packages are a small part of the remedy.

To attract private sector funding, the government will offer tax incentives to projects listed in Infrastructure Australia's priority list.

Called the ''enhanced loss utilisation'' scheme, it is designed to encourage private investment in up to $25 billion of projects. These will be exempt from the continuity ownership test and the same business test, and uplifted at the government bond rate.

This reform means any tax losses will remain in the vehicle no matter who buys or sells a stake. It means the losses can be offset at a future date when the vehicle makes money. It is hard to imagine this tax concession creating a stampede by the private sector.

They are reforms that will cost the government little because they will contribute little. Indeed, in the latest budget papers the revenue impact on forward estimates is ''unquantifiable'', given the lead times in building and earning income from infrastructure.

The private sector needs a consistent pipeline of projects and consistent regulation.

The hope is that a beefed-up Infrastructure Australia will be given the power and autonomy to reshape the infrastructure landscape and provide a list that everyone takes seriously. To this end, it will be more transparent, publish cost benefit analyses and set up a financing group to identify private financing reforms.

But there is no shortage of money in the private sector. It is a shortage of opportunities. As Kyle Mangini, the global head of infrastructure at IFM, says: ''The challenge ahead is for state governments to bring more investment opportunities to the market.''

Read more: http://www.brisbanetimes.com.au/business/federal-budget/no-room-for-bigticket-projects-20110510-1ehm3.html#ixzz1Lzf2cZB0

[Stillwater]

Did our state even ask Canberra, or lobby the federal government for funding for rail upgrades?  Did it prepare a formal funding submission?  Tassie is getting a $194 million capital upgrade of its freight rail network, with $87 million still to be spent over the next three years.

That money is deserved, no doubt.  However, on that basis, one would have thought that the passenger and rail freight conflicts and restrictions on the Sunshine Coast Line would be deserving of federal funding, linked to some matching funding arrangements that would require the state to contribute also.  (Similar to the Petrie-Kippa Ring Line.)

[Zoiks]

So how do we rate this budget.
I give it a 6/10

We had some good points - Advanced funding for MBRL and reduced FBT on vehicles
We had some bad point - Concessions on tradies utes, no big ticket spending, no reduction in diesel rebate etc

[ozbob]

From Rail Express click here!

No big spend for rail

No big spend for rail
by Rail Express — last modified May 11, 2011 01:27 PM

The Federal Government's 2011-12 budget contained little new spending for rail but on a positive note, the government reaffirmed its commitment to progressing rail projects around the country and announced welcomed reforms to Infrastructure Australia (IA).
   
By Jennifer Perry

Industry commentator Mark Carter told Rail Express that almost all of the government's rail-related announcements in last night's budget appeared to reaffirm previously announced funding allocations for this financial year.

"It may be an oversight, but there was no mention for the previously announced funding for grain line rehabilitation in Western Australia, nothing about the Epping to Chatswood Rail Link in New South Wales and nothing about Regional Rail Link in Victoria," Carter said.

While Carter said the lack of additional funding for rail was not unexpected given the good run rail has had in recent years and the competing priorities in this year's budget, it would be "prudent" for the government to ensure that rail is not overlooked next year, given rail's superior social and environmental benefits.

"There is nothing in the current budget to show that we are doing anything seriously to kick our addiction to roads and reduce our dependency on high priced foreign oil imports," he said.

Australasian Railway Association (ARA) chief executive Bryan Nye was slightly more optimistic and told Rail Express that while rail received little new funding, "we didn't lose any funding either".

"We were expecting a budget that might have cut funding for rail but the government has confirmed it will act on its election commitments and will go ahead progress vital rail infrastructure," Nye said.

"The government has also enhanced its commitment to key reforms such as the National Rail Safety Regulator and moves to introduce new tax measures to encourage private investment in nationally significant infrastructure projects.

"Private investment will be crucial for projects such as Brisbane's Cross City Tunnel and Sydney's North West Rail Link to actually go ahead."

Queensland's Moreton Bay Rail Link was one winner in the budget, with the government bringing forward $133m from 2012-15 to 2011-14 for the project. The government announced in its election campaign that it would invest $742m along with $300m from the Queensland Government for the new rail line between Redcliffe Peninsula and Petrie.

Strengthened role for IA

The government announced an overhaul to Infrastructure Australia (IA) including a 40% increase in its operating budget to $9m a year.

The budget contained no new funding for the dwindling Building Australia Fund, instead, minister for infrastructure Anthony Albanese outlined reforms to encourage greater private investment in major infrastructure projects.

"... As the global economy emerges from the Global Financial Crisis and the government's fiscal settings tighten, a renewed emphasis on private sector investment is important," Albanese said in a letter to IA chairman Rod Eddington outlining his expectations for the body.

The government's Infrastructure Investment Incentive Package will encourage superannuation investment in infrastructure through the introduction of a new tax incentive designed to remove impediments in the tax system that discourage private investment.

Only projects listed on IA's National Priority List will be able to access these improved tax arrangements.

A new Infrastructure Financing Group will advise IA on project funding and help identify further areas of work on private financing reforms.

Carter said while the new tax incentive is to be welcomed, it is too early to say whether it will "in practice" encourage additional investment.

"Based on previous experience, it is highly unlikely that the new arrangements will provide any greater encouragement for the private sector to look any differently at rail infrastructure projects in the future," he said.

The government increased IA's operating budget to $36m over four years to enable it to expand its work to include providing independent policy advice on national infrastructure reform such as the National Port and Freight strategies and working with governments and the private sector to develop a "deeper pipeline" of priority infrastructure projects.

IA will produce an enhanced list of priority projects, focusing on those worth over $100m.

Albanese said IA needs to develop a greater "top down approach" and a deeper National Priority List that looks "beyond individual proposals from jurisdictions".

In a move likely to be welcomed by industry, Albanese also outlined reforms to create greater transparency in how IA assesses projects.

IA will now publish project assessments and cost-benefit analyses, except where project information is commercially sensitive or confidential.

In an unexpected announcement, and certainly a win for Australia's rail industry, Albanese said that IA's upcoming work plan would include the development of a Public Transport Strategy.

IA will also take on the role to oversee the investment of the government's $6bn Regional Infrastructure Fund (RIF), to be funded almost entirely from revenue drawn from the Minerals Resource Rent Tax which is still to be approved by Parliament.

Infrastructure Partnerships Australia (IPA) welcomed the government's reforms to IA, but said it must get on with the job of bringing major projects forward.

"Australia has a long way to go to deal with its infrastructure challenges. [The] budget makes sound policy contributions but we need to see action on new projects too," IPA chief exectuive Brendan Lyon said.

"The government will have to make capital available for the big projects sitting on IA's shelf if we are going to complete ring roads and public transport networks in Australia's major cities and deal with key export constraints."