Budget no game-changer for Infrastructure

11 May 2011

While the Federal budget brought some positive changes in terms of transparency, taxation and policy development for infrastructure, it will not deliver a game changer in terms of investment in new projects says PwC Partner Joseph Carrozzi.

"There have been some welcome and appropriate tax enhancements, allowing losses to be carried forward and in effect be indexed to retain their value for investors who use them over extended time periods.

"The first ever national construction schedule will deliver transparency about investment priorities and timetables, providing investors with a greater level of confidence to invest in these projects.

"Infrastructure Australia has been allocated additional funds to develop policies and priorities and provide investors with much needed certainty in order to plan investments over the medium term.

"What we have not seen, however, is a plan to unlock the wealth sitting in super funds and direct it or encourage its investment in nation building projects.

"Overall, industry had modest expectations on infrastructure policy in this budget, given the fiscal constraints facing the government, and in that sense the budget delivered on this modest expectation, says Mr Carrozzi.

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