Building infrastructure

Push for productivity

Expanding Australia's productive capacity is vital to position our economy to meet future challenges.

Infrastructure investment is a key driver of productivity which will increase living standards in the long term. Demand for our exports, ageing infrastructure and strong population growth are all putting pressure on our existing infrastructure stock. The Government will continue to identify and address these critical infrastructure challenges.

The new measures announced here build on the $36 billion that is already committed to transport infrastructure, including our roads, rail and ports.

In real terms, this Government is more than doubling expenditure on major transport infrastructure in the six years to 2013‑14, compared with the previous six years.

$5.6 billion Infrastructure Fund

The Government will establish a new infrastructure fund to invest in the nation building infrastructure necessary to improve Australian living standards.

The fund will commence in 2012‑13 with an initial contribution from the Commonwealth of $700 million and will be worth more than $5.6 billion over the decade.

It will make infrastructure spending a permanent feature of Commonwealth and state budgets.

Funding will be distributed in a way which recognises that resource rich states face large associated infrastructure demands.

Infrastructure Australia will continue to develop our National Infrastructure Pipeline to help inform investment by the private sector and governments.

Further, private infrastructure investors will benefit from both new simplified disclosure for corporate bond issuance, and the new discount on bond interest income, which will help them access large pools of retail investment funds.