Infrastructure Partnerships Australia has released its 2020 Australian Infrastructure Budget Monitor, outlining a record $225 billion being invested in Australian infrastructure over the next four years, with two states leading the national league tables.
The investment is an increase of 26 per cent from 2019’s spend – to combat the economic downturn from COVID-19.
For the third year running, NSW and Victoria are leading infrastructure funding in overall spend with a combined total spend of $153 billion.
Infrastructure Partnerships Australia, Chief Executive, Adrian Dwyer, said, “Infrastructure investment has been firmly placed in the driving seat of this economic recovery.
“The 2020 Australian Infrastructure Budget Monitor shows across Australia, governments have stepped up to deliver $225 billion in public infrastructure investment, a substantial $46 billion increase from last Budget season.
“Combined, governments are pumping nearly $5 billion of infrastructure spend into the economy every month – that’s the equivalent of building one new Western Sydney Airport a month, every month, for 48 months.
“For the fourth year running, NSW is leading the league tables in public infrastructure investment, with Victoria hot on the heels.”
NSW is set to spend over $84 billion on infrastructure projects over the next four years, with Victoria coming a close second with almost $70 billion committed over the same time frame, an increase of $21 billion from Victoria’s last budget.
“NSW and Victoria continue to dominate Australia’s infrastructure funding in overall spend, with both states accounting for 68 per cent of total infrastructure funding across the nation,” Mr Dwyer said.
“Treasurers Perrottet and Pallas have firmly positioned their states as the infrastructure funding capitals of Australia and cemented NSW and Victoria as global infrastructure players.
“The Northern Territory has come from behind this year to take third place in the infrastructure funding league tables, with South Australia rising to fourth, and Tasmania jumping two places to fifth.
“Despite a measured ten per cent increase in infrastructure funding, Queensland’s constrained balance sheet has forced the sunshine state to slip to sixth in the rankings this year.
“Consistent with our own advice, states and territories across the country are investing in smaller-scale projects that can be deployed over the near term, while planning has been progressed for larger projects, providing a robust pipeline of work over the next decade.
“It’s good to see that despite significant revenue pressure, states and territories across Australia have resisted some shortsighted calls to change course on the existing program – a response which would have had a devastating and long-lasting impact.”
Infrastructure Partnerships Australia is the industry think tank for the infrastructure sector, providing independent policy research focused on excellence in social and economic infrastructure.
To read the 2020 Australian Infrastructure Budget Monitor, click here.