A new tax incentive to support up to $25 billion in new private sector infrastructure spending has commenced this week.
The new tax incentive for major infrastructure projects is a key achievement of Federal Labor’s national infrastructure reform program.
The Federal Labor Government is delivering reforms to the way our nation plans, prioritises, funds, builds and uses infrastructure, having commenced with the establishment of Infrastructure Australia, in 2008, to advise on the nation’s top infrastructure priorities.
Under this new tax incentive, the Infrastructure Coordinator can designate projects eligible for the tax concession, with a pre-requisite that it has been assessed as ‘Ready to Proceed’ on Infrastructure Australia’s Priority Project List.
This incentive will encourage private sector investment in nationally significant projects by preserving the value of tax deductable project losses over time and making it easier for investors to access these losses.
The tax incentive will also stimulate innovation in the private sector, for example, by encouraging investments in smart infrastructure that better utilises our existing infrastructure such as the roll out of managed motorways technology.
Federal Labor is delivering record investment in infrastructure, through our $60 billion Nation Building Program, but we also recognise the need to mobilise private capital.
This reform will support major transport projects that transform our cities and make our international gateways more competitive, and expand the infrastructure pipeline more broadly.
Potential applicants should visit Infrastructure Australia’s website at www.infrastructureaustralia.gov.au/taxincentive for further details and to register attendance at the workshops.
Leader of the Australian Labor Party, MP for Grayndler, Rabbitohs Life Member. Authorised by Anthony Albanese, ALP, Canberra.