Asset Investment Program

A record $30.7 billion is included in the Budget to be spent over the next four years.  Of this an estimated $8 billion will be spent in 2021-22.

Reflecting limited capacity in the civil and building construction industries, $2.6 billion in project spending from 2020-21 and 2021-22 has been deferred into later years.  This may ease some pressures in the industry and enable Local Governments to deliver projects, particularly time-bound Commonwealth funded projects.  The level of investment in developing industry capacity seems small relative to the magnitude of the constraints to deliver cost effective building and construction works.

Government Trading Enterprises (Water Corporation, Western Power and Horizon Power) will be allowed to retain $2.4 billion in dividend payments in 2021-22 to fund future infrastructure investments, including a new desalination plant with renewable energy supply, subject to future business case approvals.

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