The Commonwealth Government in Australia is punting on infrastructure, housing and skills as part of critical measures to help Australia continue to recover from the Coronavirus.

Unveiling the 2021/22 Commonwealth Budget, Treasurer Josh Frydenberg has revealed that growth in the nation’s economy is expected to accelerate from 1.25 percent in 2020/21 to 4.25 percent in 2021/22 before easing back in subsequent years.

Partly as a result, the fiscal deficit will fall from $154.6 billion in 2020/21 to $92.7 billion in 2021/22 and to $55.7 billion by 2023/24.

For building and construction, critical measures revolved around infrastructure, skills and housing.

On infrastructure, the Government will invest an additional $15.2 billion over the next ten years on road, rail and community asset building projects.

New funding for major projects includes:

• $2.6 billion for the North‑South Corridor in South Australia
• $2.03 billion for the Great Western Highway Upgrade – Katoomba to Lithgow – Construction of East and West Sections in NSW
• $2.0 billion for the new Melbourne Intermodal Terminal in Victoria
• An additional $400 million to upgrade the Bruce Highway in Queensland
• $347 million for the Hamilton Street/Wharf Street works and the Byford Extension as part of the METRONET program in Western Australia
• National Highway upgrades in the Northern Territory
• $132.5 million for Light Rail Stage 2A in the Australian Capital Territory and
• Upgrades to the Midland Highway in Tasmania.

A further $1 billion is being provided to extend the Local Roads and Community Infrastructure Program to 2022-23 whilst another $1 billion will be provided to extend the Road Safety Program to 2022-23.

Further investments will help to create a more resilient built environment.

Here, the government will establish a National Resilience and Recovery Agency to oversee programs including a $600 million investment in community and housing projects.

There will also be money for regional infrastructure through investment of $250 million in infrastructure for regional communities under the Building Regions Fund.

This will help drive opportunities for smaller builders and tradespeople in regional areas.

Another priority area affecting building and construction is housing.

Here, key measures include:

• Creation of an additional 10,000 places to be made available from 1 July under the First Home Loan Deposit Scheme, which enables eligible first home buyers to build or purchase a home with as little as five percent deposit without needing to pay mortgage insurance.
• Creation of a new Family Home Guarantee Scheme, which will provide eligible will enable single parents with dependants the opportunity to either build a new home or purchase an existing home with a deposit of as little as two percent, subject to the individual’s ability to service a home loan. Ten thousand places will be created under this scheme over a four-year period.
• An increase in the maximum amount of voluntary contributions which first home buyers can withdraw under the First Home Super Saver Scheme from $30,000 to $50,000.

Finally, the budget has invested more in skills and training.

Of most relevance to building and construction is an additional $2.7 billion to extend the Boosting Apprenticeships Commencements Program under which employers who take on apprentices and trainees can access subsidies of up to 50 percent of the cost of the wages of the apprentice for twelve months up to a maximum of $7,000.

The scheme is now being extended to cover employers who take on apprentices or trainees between now and March 31, 2022.

The extension will mean that the program all up is expected to support a total of 170,000 apprenticeship places.

An additional $500 million will also be spent (matched by state and territory governments) to expand the JobTrainer fund by a further 163,000 places and extend the program until 31 December 2022.

Launched in 2020, this provides job seekers, school leavers and young people with free or low-fee training places in areas of skills shortages.

Building industry lobby groups applauded the budget.

“Builders and tradies will strongly back the Budget. It will boost the confidence of the industry that the recovery can continue to largely ride on the ute’s back,” Denita Wawn, CEO of Master Builders Australia said.

“This is not an accountant’s Budget it is a nation-builders. It’s a Budget for people that believe in this country’s future like the people who work in the nation’s 400,000 building and construction businesses.”

“Governments usually struggle to successfully manage the transition of the economy back from life support to strong growth led by the private sector, but this Budget has the potential to succeed.”