Australia: Budget in focus: Australian Government Budget 2014

Introduction

Massive infrastructure projects and a renewed push towards privatisation will be key areas of focus for business following the announcement of the first federal budget for the Abbott Government on 13 May 2014.

Sales of government assets will coincide with a $11.6 billion Infrastructure Growth Package, as the Australian Government pushes to stimulate the economy and create new jobs to balance the decline in construction work tied to the resources industry.

Federal Treasurer Joe Hockey said in his maiden budget speech that the government was delivering a "contribute and build budget", with big new investments in medical research and infrastructure, particularly through major road projects.

"If we all contribute now, we will build the equivalent of eight Snowy Mountain schemes in new infrastructure over the next decade," Mr Hockey said, while a new $20 billion Medical Research Future Fund would be created to "find the discoveries and cures necessary to underpin the health system of the future''.

An analysis by Norton Rose Fulbright Australia reveals considerable business opportunities for Australian companies as the government re-engineers the economy to help reduce the size of the deficit. It also reveals change for the machinery of government itself, as major shake-ups to agency organisation and the provision of services and funding were announced.

Much of the media spotlight has focussed on adjustments to taxes and welfare and cuts to the public service, including a deficit levy on high-income earners, the closing of dozens of government agencies and a rise in the fuel tax excise. This is part of what Prime Minister Tony Abbott described on budget day as "pain with a purpose".

But there remain a number of key measures that will give business access to lucrative government-owned assets or involvement in some of the nation's biggest infrastructure projects.

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