Hon J.B. Hockey
Senator the Hon. Mathias Cormann
Minister for Finance
Date: Tuesday, 13 May 2014
The Abbott Government will roll out the nation’s biggest infrastructure program to strengthen the economy, ease congestion, cut travel times and create thousands of new jobs.
The Abbott Government will provide an initial $5.9 billion to an Asset Recycling Fund to build productive infrastructure. That fund will receive further contributions following the sale of any Commonwealth assets and will unblock debilitating bottlenecks that are a drag on Australia’s productivity and that also increase business costs. The Fund will begin on 1 July 2014.
The investment will leverage nearly $40 billion in additional infrastructure, which will connect communities, deliver growth and boost employment.
This spending is part of an economic strategy to build a strong, prosperous economy and a safe and secure Australia.
Payments will be made to States and Territories under the Infrastructure Growth Package. Proceeds from the sale of existing assets will be recycled into new productivity‑enhancing infrastructure, as well as expedite nationally significant projects across the country.
The initial contribution of $5.9 billion will be uncommitted funds from the Building Australia Fund and the Education Investment Fund. Further contributions will be made through the proceeds from privatising Medibank Private and from other asset sales.
This Fund will help States and Territories strengthen their balance sheets through recycling capital into a dedicated funding source to build new infrastructure.
The Abbott Government has committed nearly $10 billion to transport infrastructure through the Infrastructure Growth Package in this Budget, bringing total infrastructure investment to more than $50 billion by 2020-21.
By making the right decisions today, we are creating a stronger economy for tomorrow – with more well-paid jobs so that Australians can get ahead.
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