Quality infrastructure is vital to the Australian economy, and Australians’ quality of life. If well planned, it can be a driver of local, regional, or national productivity. The nation’s infrastructure is a mix of public and privately owned assets and operators. That means that both the private sector and governments have major roles to play in the infrastructure sector.
Earlier this year, the Business Council released our Big Questions for the nation. This paper directly addresses one of those, in respect to the nation’s infrastructure needs and supporting housing. Infrastructure also underpins every other area that the BCA has highlighted, including increasing productivity, supporting growth industries such as AI, facilitating the renewable energy rollout, and providing the physical assets to support Australia’s education and health needs.
Essential to the nation’s success is quality infrastructure that supports growth and future prosperity. To achieve that:
- Governments need well-planned public infrastructure spending, to invest in high-quality new projects, upgrade existing infrastructure, and maintain and improve the resilience of the nation’s public infrastructure assets. While the major boom in government investment over the last decade has peaked, a steady and sustainable pipeline of ongoing investment is needed, so that the nation’s growth can be maintained and living standards lifted.
- We must harness the private sector in the delivery, funding and financing, and operation of infrastructure. This is particularly pertinent at a time when government budgets are otherwise stretched. The private sector can help government dollars go further, and harness alternative funding opportunities beyond public sector budgets.
- It is critical to ensure that the infrastructure sector, both public and private participants, can maximise their productivity in the delivery and operation of infrastructure assets. Regulatory settings need to be well designed with productivity in mind, and participants must be ready and willing to embrace new technologies and ways of working.
- We must unleash innovation and new technological opportunities in the delivery and operation of assets. From automation to new pricing mechanisms, we need to maximise the output from the nation’s existing assets.
Getting these four elements right will be essential to the continued success of Australia’s infrastructure investment, and therefore to the underpinning of the future of the Australian economy, cities, and regions.
