AusRAIL, Market Sectors

ARA welcomes proposed infrastructure tax incentives

<span class="" id="parent-fieldname-description"> Australasian Railway Association chief Bryan Nye has praised new draft legislation aimed at promoting investment in public infrastructure through tax incentives. </span> <p>“These measures may help unlock projects that have long been in the pipeline but are yet to see the light of day,” Nye said, following Treasury’s announcement of a public consultation period on the new draft legislation.</p><p>Treasury’s proposed legislation aims to “encourage private sector investment in nationally significant infrastructure projects” by allowing for certain projects to be granted eligibility for tax concessions if they meet relevant criteria.</p><p>“We are removing tax disincentives to encourage more private sector investment in infrastructure projects,” assistant treasurer David Bradbury explained.</p><p>“The measure will support up to $25 billion in new private sector infrastructure spending, including major transport projects that will help transform our cities and make our international gateways more competitive,” he said</p><p>Under the proposed legislation, the Infrastructure Coordinator – a statutory officeholder under the Infrastructure Australia Act – would be responsible for designating certain projects as being eligible for tax concession status.</p><p>Projects would also need to be on Infrastructure Australia’s priority list, and would need to be listed as ‘Ready to Proceed’, to be eligible.</p><p>On top of this, projects need to be at least partially privately owned or financed, and construction on the project must not have commenced.</p><p>“This new tax incentive is part of the Government’s ongoing commitment to promote private investment in nationally significant infrastructure projects,” federal minister for transport and infrastructure Anthony Albanese said.</p><p>ARA chief executive officer Bryan Nye applauded the plan.</p><p>“Any initiative that will encourage private sector investment into major transport infrastructure has our strong support,” he said.</p><p>“Investment in high quality infrastructure projects is critical to improving national productivity and underpinning economic growth,” he said.</p>