by Ashleigh Nikolich | Mar 25, 2025 | Quantity Surveying
The 2025 Australian Federal Budget introduces several significant measures impacting infrastructure and the commercial sector.
In his Budget Speech Treasurer Jim Chalmers said: “This Budget builds on the progress we’ve made, together.
• It’s a plan to help with the cost of living –
• With two new tax cuts, and higher wages –
• More bulk billing, and more help with electricity bills –
• Cheaper medicines, and less student debt.
• And it’s a plan to build Australia’s future –
• With more homes –
• New investments in skills and education –
• Competition reforms and a Future Made in Australia.”
He also said, “This is a responsible Budget with five main priorities:
• Helping with the cost-of-living;
• Strengthening Medicare;
• Building more homes;
• Investing in every stage of education; and
• Making our economy stronger, more productive and more resilient.”
National Infrastructure
The budget includes funding for various national infrastructure initiatives, such as upgrades to the Bruce Highway in Queensland and the Stuart Highway in the Northern Territory, as well as improvements to the National Broadband Network (NBN). These projects aim to enhance connectivity and support economic growth across multiple regions.
$3 billion in additional equity to complete the rollout of the National Broadband Network.
50 new Medicare urgent care clinics
The new centres would open before the middle of next year across each state and territory. The new network of urgent care clinics was central to Labor’s last election campaign, and Labor is now promising to expand the existing 87-clinic network if re-elected. The clinics offer only bulk-billed consults and operate on a walk-in basis. Labor is promising to have all 50 new clinics open before the middle of 2026.
Queensland
Brisbane 2032 Olympics
Approximately $1.5 billion is allocated for infrastructure and facilities development in preparation for the Brisbane 2032 Olympic Games, ensuring the city is equipped to host the event.
Disaster Relief
An additional $1.2 billion has been allocated to the Contingency Reserve towards rebuilding affected communities impacted by ex-tropical cyclone Alfred.
Bruce Highway
Infrastructure An additional $7.2 billion has been put towards upgrading and fixing the Bruce Highway in Queensland, to bring it to a minimum three-star safety rating.
Housing Construction Support
To address labour shortages in the housing sector, the budget introduces incentives for apprentices and employers, including up to $10,000 for eligible apprentices and $5,000 for employers in key trades.
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New South Wales (NSW)
Infrastructure Projects
The budget includes funding for significant infrastructure projects in NSW, such as upgrades to major highways and public transport systems, aiming to improve connectivity and reduce congestion.
$2.3 billion for Western Sydney, with $1 billion for the rail network alone.
Housing Initiatives
As part of the national plan to build 1.2 million new homes by the decade’s end, NSW is set to receive substantial support to address housing affordability and supply issues.
Victoria
Increased Federal Funding
Victoria’s share of federal funding has increased by approximately $14 billion since the previous budget, reflecting the government’s commitment to supporting the state’s infrastructure and public services.
Transportation Upgrades
Allocations for road and rail projects aim to enhance the state’s transportation network, facilitating better movement of goods and people.
$2 billion towards transforming Sunshine Station, taking our Melbourne Airport Rail investments to $7 billion.
Western Australia (WA)
Resource Sector
Funding is directed towards projects that support the resource sector, including infrastructure that facilitates mining operations and export activities, crucial for WA’s economy.
Infrastructure Investment Program
Renewable Energy Initiatives
Investments in renewable energy projects aim to diversify the state’s energy portfolio and promote sustainable practices.
South Australia (SA)
Curtis Road Level Crossing Removal
An allocation of $125 million is designated for the removal of the Curtis Road level crossing, enhancing transportation efficiency and safety in the region.
Whyalla Steelworks Support
A previously announced $1.9 billion bailout for the Whyalla steelworks is identified as a “fiscal risk,” indicating potential future financial obligations to stabilise operations and preserve employment in the area.
Tasmania
Salmon Industry Legislation
The government proposes environmental legislation to support Tasmania’s salmon industry, aiming to balance economic growth with environmental protections.
Infrastructure Funding
Allocations for infrastructure projects focus on improving transportation and connectivity within the state.
Australian Capital Territory (ACT)
Public Service Expansion
The budget outlines plans to increase public service roles, impacting employment and service delivery within the ACT.
Healthcare and Education Reforms
Significant investments are planned for healthcare and education sectors, aiming to enhance public services and outcomes.
Northern Territory (NT)
Stuart Highway Upgrades
Funding is allocated for upgrades to the Stuart Highway, improving a critical transportation route for the territory.
Indigenous Community Support
The budget includes measures aimed at supporting Indigenous communities, focusing on health, education, and employment initiatives.
These budgetary measures reflect the government’s focus on enhancing infrastructure, supporting small businesses, promoting environmental accountability, and preparing for significant international events, all while maintaining fiscal responsibility.
Budget 2025-26
by Ashleigh Nikolich | May 10, 2023 | Industry News, Quantity Surveying
Whilst the 2023 budget was marketed as the budget to reduce the cost of living pressures, it is clear that it was also about reducing government expenditure with the first surplus in 15 years targeted. This is being driven by lower unemployment rates than forecast and higher returns from royalties out of the mining companies.
So are the Reserve Bank and the Federal Government finally on the same page to reduce inflationary pressures, and what effect will the budget have on the construction industry, which is buoyed under the pressure of supply shortages and labour shortages leading to a number of builders experiencing losses and a number of contractors across the country going into receivership.
“Relief, repair, restraint.” All three are at the heart of May’s Federal Budget, according to Treasurer Jim Chalmers. This equates to cost-of-living relief, repair of supply chains and (perhaps above all) spending restraint.
It appears that the Federal budget is walking the tightrope of addressing many of the cost-of-living pressures whilst also not spending big and fuelling escalation.
The key aspects affecting the construction, depreciation and renewables sectors are summarised below:
There are a number of ways the government is trying to increase housing supplies that, include:
BUILD TO RENT
- Increasing the capital works depreciation rate from 2.5% to 4% for eligible new BTR projects where construction commences after 9 May 2023
- Reducing the withholding tax rate from 30% to 15% for eligible fund payments made from 1 July 2024 by management investment trusts (MITs) to foreign residents on income from newly constructed residential build-to[1]rent (BTR) properties.
- These concessional measures are proposed to apply to BTR projects that: Consist of 50 or more apartments or dwellings made available for rent to the general public, are held under single ownership for at least ten years before being sold, and Offer a lease term of at least three years for each dwelling.
AFFORDABLE HOUSING
- Increasing the government-guaranteed liability cap of the National Housing and Finance Investment Corporation (NHFIC) to enable the NHFIC to increase its support for social and affordable housing through loans from the Affordable Housing Bond Aggregator
- Requiring the NHFIC to allocate a minimum of 1,200 homes to be delivered to each state and territory within five years of the Housing Australia Future Fund commencing operation
- Expanding the eligibility of the Home Guarantee Scheme to allow individuals who are not spouses or de-facto partners to access the scheme. These individuals include any two eligible people as joint applicants, non-first home buyers who have not owned a property in Australia for at least ten years to access the guarantee, the single legal guardian of children, and Australian permanent residents X Redirecting interest earnings on unallocated NHFIC funds to support social and affordable housing.
HOUSING -CHANGES TO THE HOME GUARANTEE SCHEME
- Starting July 2023, joint applications for friends, siblings, and other family members will be allowed under the First Home Guarantee and the Regional First Home Buyer Guarantee.
- Meanwhile, non-first-home buyers who have not owned a property in Australia in the last 10 years will be eligible to apply for First Home Guarantee and the Regional First Home Buyer Guarantee. This will provide support to those who are planning to re-enter the property market.
- The Family Home Guarantee will also be extended to include single legal guardians of children such as aunts, uncles, and grandparents.
FOR SMALL BUSINESSES SUPPORT IS PROVIDED THROUGH:
- Continuation of the instant Asset write off at the higher level of $20,000 for the 2023/2024 financial year for businesses with an aggregated turnover of less than $10M per year
- Small business Energy incentives Under this program, businesses with an annual turnover less than $50 million will be able to access an additional 20% deduction on spending that supports electrification and more efficient use of energy. Total expenditures up to $100,000 will be eligible for this incentive, with the maximum additional tax deduction being $20,000 per business. Eligible assets or upgrades must be first used or installed and ready for use between 1 July 2023 and 30 June 2024.
RENEWABLES SPENDING
“This budget allocates $4 billion to realising our future as a renewable energy superpower — bringing the government’s total investment to more than $40 billion,” Jim Chalmers said.
- This includes part of our $15 billion National Reconstruction Fund to support the development of green industries, manufacturing and more.
- A new Capacity Investment Scheme will unlock over $10 billion of investment in firmed-up renewable energy projects up and down our east coast.
However, much of the investment is off-balance sheet and does not show up in the budget papers.
- For example, the only new spending in this budget for that $15 billion National Reconstruction Fund was $61.4 million to “support the establishment and operation” of it.
- The budget includes for an investment of $2 billion in a new Hydrogen Headstart program, so Australia can be a world leader in producing and exporting hydrogen power.
- Although Budget Paper 2 notes that funding for this program will be held in the Contingency Reserve, effectively, the government’s spare cash is set aside for a rainy day.
INFRASTRUCTURE SPENDING
- Infrastructure spending will be subject to further review, and the federal government has committed to a $120Billion 10 year rolling pipeline. The 90-day independent review will allow the government time to consider the projects’ actual priorities and assess their cost and deliverability in the current environment.
- An additional $200M has been committed to replenish the Major Business Case Fund
- $200M has been committed over two years for merit-based locally driven grants that address community infrastructure
- $150M in Urban Precincts and Partnership Programs
- $2.5B for the Brisbane Arena Development
- $935M in contributions for a further 16 venues to be jointly funded with the Queensland Government for the 2032 Games
- $65M in funding for upgrades to the UTAS Stadium in Launceston
- No new funding is provided in the budget for any significant investment in rail projects for the next three years
It appears that little has been done to address the issues in the construction industry with the changes to the First home owners grants, providing additional access to first home buyers grants and placing further pressure on the construction supply chain shortages. There is no specific expenditure to address the future skills shortages in the construction industry and reduced productivity in the industry. In addition, the government has proposed an increase for heavy vehicle road users leading to increased transport costs for materials and goods. It appears that the Federal Government is finally on the same page as the Reserve Bank and has produced a budget to reduce inflation. Whilst a surplus is proposed, the forecast is that it will be short-lived, with substantial additional expenditure required for the government to service its debt requirements, large Defence spending and the NDIS program, which continues to grow.
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