Removing impediments to infrastructure financing

Infrastructure Investment Incentive Package

The Budget includes measures to improve the way we plan, develop and finance infrastructure by:

• enhancing the role of Infrastructure Australia (IA);
• establishing special tax provisions to improve certainty for private sector investment in nationally significant projects; and
• enhancing the transparency of planning, implementation and evaluation of infrastructure projects.

Improving governance

The Budget provides $36 million over the four years to 2014‑15 to enhance the role of IA.

IA will work closely with States and Territories and the private sector to promote better targeted investments in infrastructure linked to the National Priority List which IA provides to the Council of Australian Governments.

Removing impediments

The Government will amend the tax law to ensure that access to losses generated by infrastructure projects designated to be nationally significant is unaffected by changes in ownership or business structure and the value of losses is maintained over time.

The Government will 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.

Enhancing transparency

IA will publish cost‑benefit analyses.

The Government will evaluate Commonwealth funded projects after completion to ensure value for money.

The Government will also create a National Infrastructure Construction Schedule which lists large economic and social infrastructure projects to help build the pipeline for industry to invest in.