Budget highlights infrastructure challenge

Budget highlights infrastructure challengeNo new or increased taxes and renewed commitment to the first home owners’ grant are applauded by industry, but funding infrastructure projects remains a challenge for the Queensland Government.Queensland Treasurer Chris Pitt handed down his first budget last week, with the Palaszczuk Government’s focus on infrastructure and small businesses positive for the state’s property sector.”Pleasingly, the Treasurer maintained his commitment to no new or increased taxes, fees or charges – a welcome change for an industry which contributes more in state government taxation revenue than any other,” says the Property Council’s Queensland executive director, Chris Mountford.Mountford called the property industry the budget’s “white knight”, with stamp duty revenues of $3.14 billion in the 2015 financial year providing a windfall of $487 million compared to last year’s budget estimate of $2.65 billion.More than $35 billion has been earmarked for infrastructure projects over the next four years, but Mountford argues that Queensland must embrace innovative infrastructure solutions or risk being “left behind the infrastructure-rich state of NSW” which intends to invest up to $90 billion over the same period.”The government’s efforts to balance the books and pay down debt without asset sales means that it will be building the infrastructure Queensland can afford, rather than the infrastructure Queensland needs,” Mountford says.The Budget also included the announcement of a market-led proposals framework, which has the potential to increase private sector involvement in the delivery of infrastructure. Other innovative options include the successful ‘City Deals’ model being rolled out in the United Kingdom.More than $57 million was also committed to support the implementation of planning reforms.”Planning reform can increase investment and activity across the state and is a core priority for the property industry,” Mountford says.The Property Council has also welcomed the Queensland Parliament’s bipartisan approach to planning, which will see it consider legislative reform options put forward by both the government and opposition later this year.