Quality infrastructure is vital to the Australian economy and the quality of life of Australians. If planned well, it can be a driver of local, regional or national productivity. The country's infrastructure is a mix of public and private assets and operators. This means that both the private sector and governments have an important role to play in the infrastructure sector.
Earlier this year, the Business Council published our big questions for the nation. This paper addresses one of these directly, namely in relation to the country's infrastructure needs and support for housing construction. Infrastructure also underpins all of the other areas highlighted by the BCA, including increasing productivity, supporting growth industries such as AI, facilitating the adoption of renewable energy and providing the physical assets to support Australia's education and healthcare needs.
Quality infrastructure that supports growth and future prosperity is critical to the country's success. To achieve this:
- Governments need well-planned public infrastructure spending to invest in high-quality new projects, modernize existing infrastructure, and maintain and improve the resilience of the country's public infrastructure. As the great boom in government investment reaches its peak over the last decade, a steady and sustained pipeline of ongoing investment is needed to sustain the country's growth and raise living standards.
- We must leverage the private sector in the delivery, funding, funding and operation of infrastructure. This is particularly relevant at a time when government budgets are otherwise stretched. The private sector can help ensure that government funds continue to be disbursed and use alternative financing options that go beyond public sector budgets.
- It is crucial to ensure that the infrastructure sector – both public and private participants – can maximize its productivity in the delivery and operation of infrastructure assets. Regulatory frameworks must be well designed with productivity in mind and participants must be ready and willing to adopt new technologies and ways of working.
- We must unleash innovation and new technological capabilities in the delivery and operation of assets. From automation to new pricing mechanisms, we must maximize the performance of the country's existing assets.
Getting these four elements right will be critical to the continued success of Australia's infrastructure investment and therefore securing the future of Australia's economy, cities and regions.
Read the full report here
