The Australian transport industry reviews the federal budget’s commitments to road infrastructure initiatives and projects
In late October the federal government put forth a clear message to the transport industry through its federal budget. Anthony Albanese’s government used its first budget to invest heavily in key transport infrastructure projects that ensure the industry remains a priority.
In its budget statements, the federal government says funding into transport takes an important first step towards ensuring infrastructure spending is responsible, affordable and sustainable.
The budget commitment takes nation-wide transport infrastructure investment to $55 billion, with a number of new and existing projects being funded in each state and territory.
The National Road Transport Association (NatRoad) says the budget offers some good news for operators and manufacturers who had a torrid time during the COVID pandemic.
NatRoad CEO Warren Clark says the federal budget’s spending in road infrastructure is necessary and will help many in the industry remain safe and efficient in their operations.
Among the cause for celebration in the budget spending is the investment in truck rest stops across the country aimed at upgrading poor quality stops and improving the overall standard of stops across Australia.
“On the plus side of the ledger, we are delighted that the government is delivering on its promise of $80 million for truck rest stops,” Clark says. “The freight task is increasing rapidly, so we welcome this significant commitment.”
Clark says the $540 million allocated to upgrade Tasmania’s road corridors is one of many important national road transport projects that have received vital funding.
The NatRoad CEO says financial commitments to these projects will help remove dangers on the road for many operators.
“The $586.4 million for a major upgrade of the Bruce Highway through Brisbane’s outer northern suburbs is also an important project,” Clark says.
“A $300 million Western Sydney Roads Package to support planning or preparatory works for the Castlereagh Connection and Richmond Road improvements is also welcome.
“While motorists will benefit most from the projects in South Australia, we are pleased to see the Commonwealth committing to a share of a new $1.5 billion Freight Highway Upgrade Program. This will upgrade sections of the interstate Tanami Road and nationally significant freight routes, including the Dukes, Stuart and Augusta highways.”
The freight spend isn’t entirely focused on road projects.
Clark says the major spend in Victoria on the $2.2 billion Suburban Rail Loop in Melbourne will also pay dividends for the Victorian transport industry.
Despite this celebration of major transport infrastructure funding, Clark and NatRoad aren’t alone in criticising other parts of the federal budget.
Ignoring the instant asset write-off
One issue Clark has raised with the budget is the lack of commitment towards renewing the instant asset write-off scheme before it runs out in June 2023. The measure is set to conclude next year, and the budget contained no hint that it would be extended.
It’s left Clark concerned that the scheme will fade away in 2023.
“We’re hopeful that the government will have another look before what was always marked as a temporary measure runs out, especially in the light of the economic hammering our industry has taken in recent years,” Clark says.
“We hope it’s not dead and buried. It was very popular with small businesses and enabled many heavy vehicle operators to upgrade to modern, safer and cleaner vehicles.”
Clark has suggested possible solutions that the federal government can use to continue the scheme past the June 2023 deadline. He says NatRoad remains hopeful that more concessions are in the works, especially when it comes to the upcoming change to Euro VI engine emissions standards for all new heavy vehicles in November next year.
RELATED ARTICLE: How Midland Insurance Brokers is helping the transport industry
“Perhaps we could also have seen some sort of concession to assist operators in moving to Euro VI emissions standards, and we are hopeful that will be in the May budget next year,” Clark says.
NatRoad isn’t the only heavy vehicle association in Australia questioning aspects of the budget’s transport spending, or lack of.
Heavy Vehicle Industry Australia (HVIA) chief executive Todd Hacking has weighed in on the government’s forecast of skyrocketing energy prices and ongoing inflammatory pressures, saying the forecast that energy could increase as high as 50 per cent over the next two years stirs pessimism within the industry.
Hacking says that if this increase is to occur, then the government should step in sooner.
“The Treasurer’s commentary implies some sort of intervention mid-next year, but we need to see action sooner rather than later,” Hacking says. “The government has recognised the vital role of Australian manufacturing, however the unrelenting pressures being placed on industry are paralysing.
“If the cost of energy is prohibitive, that is not going to protect Australian manufacturing; it will just force manufacturing offshore or just close company’s doors.”
Hacking says the government must address the energy situation before it fully encourages the transition to zero-emissions vehicles and operations.
Plenty of positives
Yet the HVIA hasn’t completely disagreed with the federal budget decisions.
Much like NatRoad, Hacking says certain moves, including the $15 billion National Reconstruction Fund for projects driving productivity and supply chain resilience are welcomed.
“We are encouraged by that news,” Hacking says. “HVIA will continue to prosecute the case that those government spending priorities need to include Australia’s innovative, world-class heavy vehicle manufacturing industry – the industry that services and supports our vital road transport sector.
“If the past few years have taught us nothing else, surely Australians now understand how crucial the heavy vehicle industry is to our nation’s resilience. If it weren’t for our industry standing up in the toughest of times, the supply chain wouldn’t be just stretched – it would be haemorrhaging.”
Hacking says Australia’s vehicles, and technology produced by local manufacturers, are the envy of the world for their achievements and safety record.
Looking to the future of the industry, Hacking praised the government’s promise of 480,000 fee-free TAFE places as part of a New Energy Apprenticeships and Skills program.
Hacking is pushing the government to build on these positives to implement further projects that remove the stress out of the Australian transport industry’s current energy situation.
“Through the HVIA-LITE project, our members and training stakeholders from around Australia are working to progress action on zero emission vehicle skills and training priorities,” Hacking says.
“HVIA is also advocating for national consistency in funding arrangements to subsidise electric heavy vehicle training and upskilling of technicians to improve the industry uptake and transition.
“We will be reviewing the budget in detail over the coming weeks, but with global uncertainty at peak levels – this budget does little to ease anxiety on the home front.”