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
Why it now costs 130% more to service a mortgage than 3 decades ago
The lifetime cost of owning a home has increased by over 130 per cent in just three decades, new research has revealed. ...Read more
Property
Using the 30/30/3 rule for home buying during uncertain times
Thinking of buying a home? Uncertain economic times may have you double guessing your purchase, but the 30/30/3 rule can help you make this a reality. ...Read more
Property
Rental yields reach decade high, but not all markets move at the same pace
Changing consumer preferences towards lifestyle destinations and a lack of supply have led to record national price growth, albeit price fluctuations vary region-to-region, fresh figures show. ...Read more
Property
What younger Australians are getting wrong about home loans
As young Australians look to fight the odds and take their first step onto the property ladder, more and more are making easy mistakes. ...Read more
Property
More than 1 in 3 Aussie properties are cheaper to buy than rent
Having a mortgage is even more likely to be cheaper than renting than it was pre-pandemic, new research has revealed. ...Read more
Property
How will the moratorium on evictions impact landlords and tenants?
The NSW government has announced a 60-day moratorium on evictions, with landlords gifted incentives to reduce the burden on COVID-19-affected tenants. ...Read more
Property
Young renters cry out against ‘lack of respect’ in rental market
Young Australians have expressed dismay over the perceived discrimination within the rental market as the wealth divide forces them into long-term renting. ...Read more
Property
Note investing: A way into the property market for younger Australians?
As the traditional route into the housing market becomes more difficult, could unorthodox alternatives like note investing bridge the gap? ...Read more
Do lockdowns boost property prices? Are short-sellers levelling the playing field? Did you lodge your tax returns early?
Listen now
Will lockdowns halt the housing boom? Is the metaverse taking over? And the cons of lodging your tax returns early
Listen now
Are you being priced out of the market? Have you got the Tuesday blues? And are you ready for the upcoming super changes?
Listen now
Are property prices set to crash? Should you jump on board the fintok craze? And how to prepare for this tax time
Listen now
Property
Why it now costs 130% more to service a mortgage than 3 decades ago
The lifetime cost of owning a home has increased by over 130 per cent in just three decades, new research has revealed. ...Read more
Property
Using the 30/30/3 rule for home buying during uncertain times
Thinking of buying a home? Uncertain economic times may have you double guessing your purchase, but the 30/30/3 rule can help you make this a reality. ...Read more
Property
Rental yields reach decade high, but not all markets move at the same pace
Changing consumer preferences towards lifestyle destinations and a lack of supply have led to record national price growth, albeit price fluctuations vary region-to-region, fresh figures show. ...Read more
Property
What younger Australians are getting wrong about home loans
As young Australians look to fight the odds and take their first step onto the property ladder, more and more are making easy mistakes. ...Read more
Property
More than 1 in 3 Aussie properties are cheaper to buy than rent
Having a mortgage is even more likely to be cheaper than renting than it was pre-pandemic, new research has revealed. ...Read more
Property
How will the moratorium on evictions impact landlords and tenants?
The NSW government has announced a 60-day moratorium on evictions, with landlords gifted incentives to reduce the burden on COVID-19-affected tenants. ...Read more
Property
Young renters cry out against ‘lack of respect’ in rental market
Young Australians have expressed dismay over the perceived discrimination within the rental market as the wealth divide forces them into long-term renting. ...Read more
Property
Note investing: A way into the property market for younger Australians?
As the traditional route into the housing market becomes more difficult, could unorthodox alternatives like note investing bridge the gap? ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
