As the end of the year approaches, it’s encouraging to see that there are business sectors which are ready to do the heavy lifting when it comes to advancing the national economy. The 2020 federal budget targeted several industries for major project funding.
Construction and infrastructure
A land transport infrastructure program will be boosted by $110 billion of government expenditure over the next ten years. Here’s a sample of the funding targets:
ACT - $100M and estimated180 jobs for Canberra-South West Corridor Upgrade Package
New South Wales - $700M and estimated 1370 jobs for Singleton Bypass on New England Highway
NT - $150M and estimated 290 jobs for Carpentaria Highway Upgrade
Queensland - $1.53BN and estimated 700 jobs for Coomera to Nerang Connector
South Australia - $250M and estimated 680 jobs for Hahndorf Improvement and Access Upgrade
Tasmania - $187M and estimated 860 jobs for Hobart to Sorell Corridor
Victoria - $365M and estimated 292 jobs for Barwon Heads Road Upgrade
Western Australia - $210.6M and estimated 300 jobs for Metronet High Capacity Signalling
Nationally, a further 10,000 places, specifically for newly-built homes, will be added under an extension to the First Home Loan Deposit Scheme, with the aim of lifting housing construction.
The federal budget will also help farmers make a major contribution to Australia’s post-COVID economic recovery. Significant funding will be made available in the following areas:
Water infrastructure. $2.27BN for improvement and reforms
Agricultural exports. $328M for digital services, market diversification and streamlining
Drought and flood impacted communities. $155.6M for emergency water rebates, recovery and resilience agency funding
CSIRO. $5M to upgrade agriculture and grazing research facilities
Agricultural workforce. $33.7M in relocation assistance and incentives
Australian manufacturing will benefit from the new Modern Manufacturing Strategy. There are four pillars to the strategy:
Getting the economic conditions right for business via JobMaker, lower energy costs, improving management and industrial relations, tax reform, red tape reduction
Making science and technology work for industry through research and innovation, investment in modernisation, digital transformation
Focusing on areas of advantage with National Manufacturing Priorities, action road maps and project backing
Building national resilience by strengthening supply chains and supporting diversification
Funding will be provided via the Modern Manufacturing Initiative ($1.3BN) the Supply Chain Resilience Initiative ($107.2M) and the Manufacturing Modernisation Fund ($52.8M).
JobMaker will create employment for around 450,000 young Australians. Businesses will receive cash credits for 12 months for new hires currently on JobSeeker, as follows:
$200 per week for 16-29 year-olds
$100 per week for 30-35 year-olds
Additionally, the government will establish the JobTrainer fund for free or low-cost training for school-leavers and job seekers, deliver an additional $1.2 billion and a 50% wage subsidy for 100,000 new apprenticeships and traineeships, and add significantly to its support for higher education. These employment measures will boost every sector of the economy.
Ready to play your part?
If your business is in a position to participate in the expected upsurge in construction, agriculture, manufacturing and related industries, your broker has the finance options you need to equip you to succeed.