"The Government will invest $1.6 billion in a 10 per cent temporary investment allowance – provided as an additional tax deduction – which will encourage capital investment by Australian businesses. The allowance will be equal to 10 per cent of the cost of an eligible asset.
Today’s package will also help small business by cutting the next quarterly tax instalment (PAYG) for 1.3 million small businesses by 20 per cent. This reduction in the February instalment will provide immediate and much-needed cash flow relief to small businesses over the summer."
The rest of today's announcement from Rudd and Swan is below the fold:
$4.7 BILLION NATION BUILDING PACKAGE
The Rudd Government today announced a $4.7 billion nation building package to strengthen the Australian economy and create Australian jobs.
Today’s package is a timely investment in road, rail, and education infrastructure, as well as vital tax changes to help Australian businesses during a global recession.
These national infrastructure projects and the assistance to business will boost the level of GDP and help create up to 32,000 Australian jobs.
There are three key infrastructure elements in today’s package:
Inject $1.2 billion in new funds into the Australian Rail Track Corporation
Bring forward $711 million in road spending to this financial year and next and more than double funding for the Black Spots program
Invest $1.6 billion in critical university and TAFE infrastructure
Today’s package also includes two vital tax changes:
. A 10 per cent temporary investment allowance to encourage capital investment by Australian businesses
. A 20 per cent cut in the next quarterly pay-as-you-go (PAYG) tax instalment for 1.3 million small businesses
Today’s package builds on the Rudd Government’s $10.4 billion Economic Security Strategy, the $6.2 billion New Car Plan, the $300 million local infrastructure funding boost, and the $15.1 billion COAG package.
The Government will make further announcements about nation building projects, funded from the Building Australia Fund, and subject to the Infrastructure Australia priority list, early next year.
$1.2 BILLION INVESTMENT IN RAIL INFRASTRUCTURE
Over the next two years, the Rudd Government will inject $1.2 billion into the Australian Rail Track Corporation (ARTC) in 17 projects to improve the reliability and competitiveness of the nation’s rail freight network.
$580 million of today’s investment will be used to expand capacity along the rail corridors connecting Hunter Valley coal mines to the Port of Newcastle. This $1 billion project will more than double the amount of coal being transported to export markets from 97 to 200 million tonnes a year.
Other Rail projects funded today include:
$55.8 million for Queensland border to Acacia Ridge track upgrade
$45.1 million for Sydney to Brisbane line – new, extended and upgraded loops
$29.7 million for Melbourne to Junee line – passing lanes
$45 million for Seymour to Wodonga track upgrade
$91.5 million for Cootamundra to Parkes track upgrade
$105.7 million for Western Victoria track upgrade
$50 million for Wodonga Bypass duplication
$42 million for Cootamundra to Crystal Brook line – new and extended loops
$76 million for Melbourne to Adelaide line – extended loops
$23 million Adelaide to Kalgoorlie line – new and extended loops
$45 million towards the $90 million Advanced Train Management System (ATMS) trial set to bring train management into the digital age
$711 MILLION INVESTMENT TO BUILD BETTER ROADS
The Rudd Government will bring forward $711 million in spending in this year financial year and next to accelerate the commencement of 14 road projects.
Today’s package will also more than double our investment this financial year in the highly successful Black Spots program from $50 million to $110 million.
Other road construction projects bought forward by this package include:
The NSW Hume Highway – Woomargama Bypass
The NSW Hume Highway – Tarcutta Bypass
NSW Pacific Highway – Bulahdelah Bypass
NSW Pacific Highway – Sexton’s Hill, Banora Point
QLD Ipswich Motorway – Dinmore to Goodna
QLD Pacific Motorway – Springwood South to Daisy Hill
QLD Bruce Highway – Douglas Arterial
VIC Western Ring Road Upgrade
VIC Goulburn Valley Highway – Nagambie Bypass
VIC Western Highway – Anthony’s Cutting
VIC Princes Highway – Traralgon to Sale
WA Mandurah Entrance Road
SA Northern Expressway
TAS Midland Highway – Brighton Bypass
On top of this road funding the Government will also set aside $195 million for investment in agricultural and social infrastructure to develop irrigated agricultural land around Kununurra following assessment of the projects by the State and Federal Government.
$1.6 BILLION TO BUILD BETTER UNIVERSITIES AND TAFES
Today’s $1.6 billion investment in building better universities and TAFES will include fast tracking the spending of $580 million into 11 projects focussed on strengthening the research facilities at Australian universities, funded through the Education Investment Fund.
The Government will also fund a one-off $500 million investment to target capital expenditure towards the development of teaching and learning spaces in Australia’s universities. This funding will be delivered through the Teaching and Learning Capital Fund for Higher Education.
Today’s package also delivers a $500 million injection into public skills and training infrastructure through The Teaching and Learning Capital Fund for Vocational Education and Training.