03/05/2010 - 12:25

Rudd to set up new infrastructure fund

03/05/2010 - 12:25

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The federal government is set to establish a new infrastructure fund with a starting base of $700 million to ready the country for future mining booms.

The federal government is set to establish a new infrastructure fund with a starting base of $700 million to ready the country for future mining booms.

The fund was revealed yesterday as part of the tax reforms stemming from the Henry review.

The new fund will build on the $22 billion Nation Building for the Future package that was announced in the 2009-10 budget.

The Rudd government plans to make annual contributions to the new fund starting at $700 million from 2012-13.

"This fund will recognise that resource rich states also face large associated infrastructure demands. It will be used to invest in infrastructure, including to develop Australia's natural resource wealth," the federal government said in a statement.

"The fund will deliver resources to the states when they are needed - as projects are built. The states will not have to wait until projects are complete and production comes on line for infrastructure resourcing to flow.

"The details of the fund will be settled through negotiations with the states."


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