Invest
Population boom needs transport and infrastructure investment
$600 billion in spending is needed over the next 15 years to avoid congestion and overcrowding in capital city transport networks, as Australian cities feel the strain of population growth.
Population boom needs transport and infrastructure investment
$600 billion in spending is needed over the next 15 years to avoid congestion and overcrowding in capital city transport networks, as Australian cities feel the strain of population growth.
A new report from Infrastructure Australia has flagged that, every five years, the nation must spend $200 billion on new projects just to keep up with rising populations.
Infrastructure Australia’s comments align with that of the Reserve Bank of Australia’s governor, Philip Lowe, who has repeatedly called for greater fiscal stimulus.
Unsustainable growth
Despite Australia’s major cities requiring record spending for the next 15 years at least, Infrastructure Australia’s chair, Julieanne Alroe, said it is getting harder for Australians to fund such growth.
Analysis of the household expenditure survey used in the audit found the average household spent just $314 each week on infrastructure in 2015–16 — or $16,000 annually.
“Australians earning the lowest 20 per cent of incomes across the country spend around a third of what they earn on infrastructure”, which is above a level that would be considered affordable, according to Ms Alroe.
Despite rising electricity costs gaining notoriety, Ms Alroe said lack of transportation is costing lower-income earners more.
“While concerns about rising energy prices are widely held, the proportion of household income spent on energy is relatively low, [at] 2 to 6 per cent, in contrast to transport which accounts for between 10 and 22 per cent,” she continued.
Cost of inaction
Despite the fact that Australians are feeling the pinch from funding these projects, a lack of funding today creates a larger problem tomorrow, the report considered.
Calling the cost of inaction “significant”, Ms Alroe said that “if investment were to stop, the cost of road congestion is projected to grow by $18.9 billion to $38.7 billion in 2031”.
She said this will impact on Australians’ quality of life as well as our economic productivity and competitiveness as a nation.
Acknowledging the issues contained within the report, the Australian Prime Minister has noted current action on new projects in response to the same information as is contained in the report.
“The report predated the 2019–2020 budget which had $23 billion specifically extra in projects, including 160 congestion budget projects, so there has already been a significant addition in terms of what the Commonwealth is doing to the information the report is based on,” Mr Morrison had outlined.
About the author
About the author
Property
Aussies swap housemates for home ownership
The number of younger Australians looking to enter the property market in the next five years has doubled, as COVID-19 restrictions sees home ownership goals increase, according to research released ...Read more
Property
Falling loan deferrals prove market recovery: REIA
The reduction in loan deferral defies doom and gloom forecasts in the property market, the Real Estate Industry of Australia has said. ...Read more
Property
Why are expats returning to property market?
Expats are returning to Australia in droves, eager to put their money into safe investments. ...Read more
Property
Stamp duty to be phased out under new proposal
The NSW government has stated that it could phase out inefficient taxes such as stamp duty as it looks to recover from the COVID-19 pandemic. ...Read more
Property
Melbourne rents continue to decline
While most capital cities recorded increases in asking rents, Melbourne continued to see declines in both houses and units, according to latest data from SQM Research. ...Read more
Property
Why investors should focus on the next 1-5 years
Investors are being urged to look beyond their own backyards into opportunities over the next one to five years. ...Read more
Property
Distressed sales fall to pre-pandemic levels
Urgent property sales have dropped back to pre-pandemic levels in most cities – proof of Australia’s continuous recovery from the effects of the COVID-19 outbreak. ...Read more
Property
Top tips for managing your own property portfolio
Managing investment properties can feel very much like rolling a dice, you can never be quite sure what you’re going to encounter and, in most cases, you possess minimal control over what happens ne...Read more
Property
Aussies swap housemates for home ownership
The number of younger Australians looking to enter the property market in the next five years has doubled, as COVID-19 restrictions sees home ownership goals increase, according to research released ...Read more
Property
Falling loan deferrals prove market recovery: REIA
The reduction in loan deferral defies doom and gloom forecasts in the property market, the Real Estate Industry of Australia has said. ...Read more
Property
Why are expats returning to property market?
Expats are returning to Australia in droves, eager to put their money into safe investments. ...Read more
Property
Stamp duty to be phased out under new proposal
The NSW government has stated that it could phase out inefficient taxes such as stamp duty as it looks to recover from the COVID-19 pandemic. ...Read more
Property
Melbourne rents continue to decline
While most capital cities recorded increases in asking rents, Melbourne continued to see declines in both houses and units, according to latest data from SQM Research. ...Read more
Property
Why investors should focus on the next 1-5 years
Investors are being urged to look beyond their own backyards into opportunities over the next one to five years. ...Read more
Property
Distressed sales fall to pre-pandemic levels
Urgent property sales have dropped back to pre-pandemic levels in most cities – proof of Australia’s continuous recovery from the effects of the COVID-19 outbreak. ...Read more
Property
Top tips for managing your own property portfolio
Managing investment properties can feel very much like rolling a dice, you can never be quite sure what you’re going to encounter and, in most cases, you possess minimal control over what happens ne...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
