IN delivering his third federal budget, Treasurer Wayne Swan has made good on his promise to “get back to surplus as quickly as possible”, but one result is that Western Australia has received little from the Commonwealth.
IN delivering his third federal budget, Treasurer Wayne Swan has made good on his promise to “get back to surplus as quickly as possible”, but one result is that Western Australia has received little from the Commonwealth.
Mr Swan highlighted that the strength of Australia’s economy would push the budget’s bottom line into surplus in 2012-13, three years ahead of forecasts made 12 months ago.
But while WA’s mining and resource-driven economy continues to boost the nation, the west has little to celebrate compared to last year’s budget, when about $600 million was committed to the Northbridge Link and Oakajee port and rail projects.
While these projects were priorities for the state government in its submission to the Commonwealth’s ‘Infrastructure Australia’ program last year, other priority projects were overlooked this year.
The $600 million Gateway WA project to improve the roads around Perth Airport received no money.
WA will get a share of a $1 billion boost to the nation’s rail network, which will focus on key interstate links, including to Perth.
The government said resources-rich states would receive relatively more funding as they needed to invest more in infrastructure to support the ongoing development of the mining and energy sectors.
The Commonwealth will commit a further $652 million over four years to establish a Renewable Energy Future Fund to provide support for Australia’s response to climate change.
The fund will support the development and deployment of large and small-scale renewable energy projects, as well as enhancing the take-up of industrial, commercial and residential energy efficiency. It will form part of the government’s expanded $5.1 billion Clean Energy Initiative, which includes the $2 billion Carbon Capture and Storage Flagships Program and the $1.5 billion Solar Flagships Program announced in last year’s budget.
In a budget with few major spending initiatives, the federal government will bring forward spending of $661 million for skills training to create 70,000 new training place and 25,000 new apprenticeships across the country.
Other budget news included the Commonwealth’s plan to spend up to $25 million over four years to create an academic financial centre to boost Australia’s status as a leading financial hub.
Later this year the government will work to establish a business model for what it has termed the ‘Centre for International Finance and Regulation’, which will be hosted by a university or a consortium of universities.
Amendments to capital gains tax provisions will improve the ability for businesses to restructure, as the federal government committed to extending CGT rollover for the conversion of a body to an incorporated company.