In order to stimulate the economy following the outbreak of coronavirus earlier this year, the federal government announced JobMaker. The scheme offers fresh infrastructure investment that will fast track key projects in Australian states and territories. This will provide economic and employment growth, prompting expectations that national unemployment will not exceed 8 percent as predicted by Treasury Secretary Dr Stephen Kennedy.
ABS figures indicate construction activity has been in decline, with the exception of Victoria and ACT. The coronavirus pandemic has depleted private demand for new construction works as well as slowing the completion rate for current projects, highlighting the need for government intervention to protect Australian construction jobs and maintain our infrastructure pipeline for our longer-term benefit.
Prime Minister Scott Morrison has confirmed there will be 15 priority projects which will receive the government subsidy, as well as various other smaller projects. Many of the infrastructure projects are in close proximity to past and present Blue Wealth projects where subsequent employment growth will be achieved.
Some of the fast-tracked projects include the following:
The federal and state governments announced $324.4 and $90.3 million investments into the current infrastructure pipeline in QLD. These investments are targeted toward road safety upgrades which have built upon the initial $1.4 billion Queensland investment announced in November 2019. There is currently $26.7 billion worth of government investment in the state pipeline, indicating significant potential growth for the state. The Burke and Gregory development roads are among the announced fast-tracked projects which account for an estimated 700 jobs alone. The government also sought to deliver upgrades for the Gateway Motorway Flyover in order to hedge against the current traffic conditions, which result from 40,000 vehicles traveling northbound every day. This motorway upgrade will be a benefit for many of our clients who are within proximity to these projects, most notably those who have invested in the Brighton, Carseldine and Albany Creek areas.
New South Wales
The federal and state governments have joined forces to rollout a $1 billion investment program, generating 5,500 jobs overall. 11 traffic heavy hotspots will be targeted by the government in order to improve road safety and connectivity. $240 million will be provided in order to improve conditions, creating 1,000 jobs. Government subsidy will also be provided to councils to ameliorate the current road conditions that exist, providing 3,500 jobs. In addition, regional areas will receive a $398 million investment which is expected to create 950 jobs. In total there is $35.4 billion worth of infrastructure in the NSW transport infrastructure pipeline. Included in the fast-tracked funding is the new Western Sydney Metro expected to now be finished in 2026. Western Sydney investors will benefit from tenants experiencing both improved liveability and employment opportunities.
The federal and state governments have announced a fast-tracked investment working towards the goal of completing high priority infrastructure projects. On an interstate level, one of these priority projects will be the Brisbane to Melbourne Inland Rail project. The Australian Rail Track Corporation (ARTC) estimates that this particular project will create 16,000 jobs during the construction phase. The company will then employ another 500 staff and there will be 5,000 contractors. The railway is expected to benefit both the local areas in which construction will take place as well as the industries that will be required in order to complete the project. The federal and state government have also committed a combined $500 million to expedite shovel ready projects as well as road safety upgrades. There are two projects which are at the heart of this funding, being the regional rail revival and the duplication of the Princes Highway between Traralgon and Sale.
The state and federal governments have pledged a fast-tracked investment for priority projects, targeting road safety upgrades across the state. Notable projects include the Great Northern Highway in the Kimberley Region, Point Samson Road in Pilbara, Yarde Creek Road and Minilya. Prime Minister Morrison has also announced that many rail and iron ore projects will be involved in the scheme. The Metronet Rail project has been named as a priority shovel ready project that will receive fast-tracked investment. Many of the station upgrades that will occur are in direct proximity to the locations that Blue Wealth clients are invested. These upgrades will provide the greater Perth area with increased utility and subsequent jobs growth.
Considering the current housing market and its reaction to the coronavirus pandemic we can see that it has remained quite resilient state to state. Job losses and economic downturn has occurred, but with the government’s response to this problem and with interest rates as low as they are, there is likely to be a positive reaction in the property market.