This opinion article by Business Council of Australia Chief Executive Bran Black was published in The Australian Financial Review on 29 October 2025.
This is an enormously consequential week in Canberra for one reason: environmental protection laws reform, without which Australia will remain in first gear for decades to come. It’s putting a spotlight on just how far we risk falling behind peers on critical national infrastructure.
Infrastructure, from bridges and roads to mobile networks and data centres, is the stuff around our lives that we mostly take for granted. It’s not always flashy, but it’s critical to both our quality of life day-to-day and our prosperity in the long-term.
That is why the Business Council is calling for a better planned infrastructure pipeline, faster environmental approvals, a consistent approach to investment, and recognition of the critical role of the private sector in infrastructure delivery.
Infrastructure underpins every major national goal, which is why reforming our federal environmental approvals system is so critical to our national success. Without faster project approvals we will never meet our net zero ambitions, for instance.
Just as we need to build faster and smarter, infrastructure investment is forecast to slow sharply across the federation. Parliamentary Budget Office forecasts show that after a decade of record construction net state and territory capital expenditure is now forecast to decline significantly.
I’m not arguing for the retention of infrastructure investment at the heights we’ve seen in recent years, which has strained state budgets. What we do need, however, is a rebuilt approvals system, and a steady approach to investment to avoid boom-bust cycles that hollow out skills, capacity, and confidence.
This is because infrastructure doesn’t appear overnight – it takes years and years to plan, approve, and deliver major projects. The Melbourne Metro Tunnel, for example, took ten years from business case to what will soon be full operation.
That means poor planning and decisions deferred today will show up as bottlenecks, inflated costs, housing shortages, and service breakdowns in the 2030s.
This is because Australia’s population is growing. Within 25 years, the ABS projects that there could be nearly 38 million people calling this country home. Planning for that growth will require supporting housing, transport, energy, health, education, and digital systems.
We know that governments around the country face genuine fiscal pressures, but cutting infrastructure to balance the books is a false economy. Every dollar spent wisely on good infrastructure pays a dividend in jobs, productivity and long-term growth.
The International Monetary Fund estimates that each $1 million spent on infrastructure creates three to seven jobs in advanced economies. OECD research shows a $1 billion increase in well-governed infrastructure investment can lift GDP by up to $1.3 billion within two years.
That’s why we need a steady, well-planned pipeline of projects that smooths the highs and lows of the cycle. The focus must be on strategic, long-term investment guided by evidence.
Infrastructure selection should rest on need, benefit, and independent assessment. The creation of independent infrastructure bodies like Infrastructure Australia were major reforms, and all governments must recommit to using them to keep decisions above the political fray.
Equally, governments cannot meet the nation’s needs alone. Private capital and expertise are essential to delivering the infrastructure that will sustain Australia’s growth. In 2024-25 it accounted for almost 80 per cent of the total $105 billion in national infrastructure spending.
Yet too often we’ve seen politics override the genuine partnership that gives investors confidence.
Recommendations to override contracts, moves to re-enter competitive markets or restrict private operation of public assets send the wrong message to investors at a time when we need their participation most.
These ideas and actions don’t just deter capital, they create sovereign risk. The message must be clear: Australia welcomes private investment and collaboration in building the infrastructure our communities need.
Partnership means smarter contracting, fairer risk-sharing, and procurement that rewards innovation and efficiency. It means cutting red tape, adopting digital tools like Building Information Modelling, and reforming planning systems that hold projects hostage.
With productivity in the construction sector declining by more than 10 per cent over the last decade, it also means confronting reckless union behaviour that damages productivity and drives up costs. Lawfulness, fairness, and efficiency must be the foundation of a modern infrastructure workforce.
We must also focus on getting more from the infrastructure we already have. Smarter asset management and digital health models that reduce pressure on hospitals can unlock enormous value without a single new shovel in the ground. That’s why spending on these initiatives should be as highly valued as bricks and mortar.
The way we build, maintain, and use assets must also evolve to match a rapidly changing economy and society. The energy transition, the growth of data centres, and the shift toward AI and automation all demand reliable, efficient and resilient networks.
The task ahead is about spending smarter and more consistently rather than simply spending more. It is about creating a stable investment environment where governments, industry, and workers can plan confidently for the long term.