The Importance of Infrastructure

Infrastructure is without a doubt an important factor for continuous national development. It serves as physical foundation for the flourishing economy. That is because it helps businesses operate more efficiently and increase productivity. Moreover, it provides connection between consumers and the products they need. Infrastructure is critical to the Australian economy.

Thus, the Australian Government is taking actions to continue planning, financing, developing and building infrastructure projects. These projects aim to help further build the nation in the future. The government recognises the need to continuously construct and improve roads and other structures for public and private usage.

The infrastructure construction market in Australia has been enjoying unprecedented growth over the past 10 years. It is not surprising given the growth in resources, the current mining boom and the impact of the economic stimulus by the government. Business analysts expect further growth in Australian infrastructure and construction in the coming years. Likewise, more private infrastructure investment and financing opportunities could be expected in the next decade.
Recently, the Federal Government has appointed its first ever Federal Infrastructure Minister. The goal is obviously to help drive ongoing regulatory reform and to undertake long term planning. There is also an aim to evaluate current merits of several major infrastructure projects. There are now new rules for public-private partnerships to encourage more investments into the sector.


Public Private Partnerships

Australia has adopted one of the most effective Public Private Partnerships (PPPs) models. The goal of this is to deliver important infrastructure projects, which may range from hospitals to toll roads. PPPs in all government levels are expected to continuously grow. This will provide more opportunities for public and private sector investors who intend to invest in major infrastructure efforts.

At the same time, the government is open to taking foreign investments in such projects. Those would help in the financing, development and reaping of rewards from significant infrastructure projects that are already in the pipeline. Continued demand for infrastructure development across the country could create more investment opportunities for investors in any field and any nation.
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Investments by Government

Of course, the federal as well as state governments are investing in infrastructure to help fund the continuous growth of the future. In 2008, the Building Australia Fund was established by the Australian Government to help fund investment in infrastructures that are critical to continuous economic development particularly in energy, communications, transportation and water sectors.

Super fund investors are also encouraged to invest in infrastructure. It is not surprising that many of those funds now decide to do so. The investment decision is a lucrative one. Super contributors would also feel better knowing that their contributions somehow help further development of important infrastructure projects nationwide.

Simple investing in infrastructure may not be sufficient. There should be changes and lasting improvements to the way governments and private investors work together. The national government is appropriately instituting major programs to handle issues and improve planning, management, funding, and delivery of infrastructure anywhere in the country.

If you are looking to invest in infrastructure, ALC Commercial may be able to help you finance your 1300 886 996 and discover your business loans options.