Nation Building - Economic Stimulus Plan

Nation Building - Economic Stimulus Plan

WA Implementation

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At the 5 February 2009 special meeting of COAG, the Commonwealth, States and Territories signed up to the Rudd Government's $42 billion Nation Building - Economic Stimulus Plan. The Plan invests in the long-term economic growth of the nation and is expected to support up to 90,000 jobs nationally over the next two years.

The Nation Building - Economic Stimulus Plan aims to stimulate the economy via rapid delivery of construction projects in social housing, schools and transport around the nation.  The agreement brings very significant benefits for Western Australia. Together, the Western Australian and Commonwealth Governments will invest over $3 billion in housing, education, transport and community infrastructure throughout Western Australia, providing a much needed boost to the construction sector and local economies.

All regions of the State will benefit from the increased investment in capital works and maintenance projects. The collective investment of the State and Australian Governments will help to stimulate economies in local communities through the scale and pace of construction work undertaken.

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Nation Building - Economic Stimulus Plan

The key components of the Nation Building - Economic Stimulus Plan are:

·         Building the Education Revolution

·         Social Housing

·         Black Spots, Boom Gates, Regional Roads and Community Infrastructure

·         Energy Efficient Homes

·         Small Businesses and General Business Tax Break

The Commonwealth provides further information on each of these areas through its Economic Stimulus Plan website.

Building the Education Revolution

Every one of Western Australia's 1072 primary and secondary schools, both public and private, will receive funding to upgrade existing facilities or develop new ones.  The three elements of Building the Education Revolution are:

·         Primary Schools for the 21^st Century – $12.4 billion nationally to build or refurbish large scale infrastructure including libraries, halls, indoor sporting centres or other multipurpose facilities. Funding is available to all 861 Western Australian government and non-government primary schools, the primary component of K-12 schools and all special schools.

Construction of large scale infrastructure will start from July 2009.

·         Science and Language Centres for 21^st Century Secondary Schools - $1 billion is available nationally to build up to 500 science laboratories or language learning centres in secondary schools that can demonstrate need. Funding will be based on a competitive process.

·         National School Pride Program – up to $200,000 to every Australian school for maintenance and renewal of school buildings. All of Western Australia's 1072 government and non-government schools will receive funding based on student enrolments.

Maintenance and renewal projects commenced in June 2009. 

Information on funding for Western Australian schools is provided by Building Management and Works.

Social Housing

The Nation Building - Economic Stimulus Plan will provide funding of $6.4 billion nationally over four years for the construction of up to 20,000 new dwellings for social housing and maintenance works for approximately 2,500 public housing dwellings across Australia.  

Building on the Western Australian Government's commitment to improve social housing, the additional Commonwealth funding will now see some 2000  new houses (972 in the regions) constructed throughout this State, and addressing significant housing shortages for key workers and social housing tenants. Approximately 400 social housing units will be upgraded to provide tenants with better quality housing.

Based on the Commonwealth's advice on indicative allocations, Western Australia is likely to receive: 

·         Approximately $40.5 million over two years to upgrade 397 dwellings commencing in 2008/09 - maintenance work will commence in April 2009

·         Social Housing Stage 1 proposal - $69 million for construction 297 new social housing dwellings in 2008/09 - construction will commence before June 2009

·         Social Housing Stage 2 proposal – approximately $540 million to construct up to 1,700 new dwellings by June 2011

The Department of Housing provides further information on WA's implementation of the housing stimulus package here.

Black Spots, Boom Gates, Regional Roads and Community Infrastructure

Nationally, the Plan will provide:

·         $30 million in funding for 350 additional projects in the Black Spot Program

·         $150 million over two years for the installation of around 200 new boom gates at high risk rail crossings

·         $150 million in funding for regional road maintenance projects

Of these, Western Australia will receive:

·         approximately $9 million in funding for projects in the Black Spot Program

·         approximately $15 million for the installation of boom gates and rail crossings

·         an additional $10 million for road maintenance projects

Information on specific projects and tenders can be found at Main Roads Western Australia.

The Commonwealth is also providing additional funding to local government for community and social infrastructure projects. This funding coupled with the State Government's $400 million Country Local Government Fund will see Councils, particularly regional Councils, receive an immediate and much needed boost to develop new facilities and improve local infrastructure.

Energy Efficient Homes

Small Businesses and General Business Tax Break

·         Small businesses can claim an additional 30 per cent tax deduction for eligible assets costing $1,000 or more that they acquire from 13 December 2008 to 30 June 2009, and install by 30 June 2010.

·         For eligible assets costing $1,000 or more that they acquire from 1 July 2009 to 31 December 2009, small businesses can claim an additional 10 per cent deduction where they are installed by 31 December 2010.

·         To benefit from this tax break a small business must have a turnover of $2 million a year or less. Other businesses can receive the same deductions for eligible assets greater than $10,000.

On 25 February 2009, the Federal Treasurer released an exposure draft of the Tax Laws Amendment (Small Business and General Business Tax Break) Bill 2009 and associated explanatory material.

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WA Implementation

Implementation of the package and works program started immediately to ensure benefits flow quickly. A State Coordinator General has been identified to oversight and monitor implementation of the package within Government and to identify any barriers to implementation (at the Commonwealth or State level), such as the need for more streamlined procurement and tendering arrangements or planning reforms for infrastructure projects to ensure the stimulus plan is delivered on time. The State Coordinator General will also liaise with the Commonwealth Coordinator General who is responsible for monitoring implementation of the package throughout Australia.

Mr David Smith, Deputy Director General, Department of the Premier and Cabinet, is undertaking the role of State Coordinator General to oversight the implementation of the Plan in Western Australia. 

Other contacts in WA agencies are:

·         Warren Hill, Department of the Premier and Cabinet (Deputy Coordinator General)

·         Rebecca Brown, Department of Treasury and Finance (Treasury Coordinator)

·         James Thom, Department of Education and Training (Education Coordinator)

·         Shane Hamilton, Department of Housing (Social Housing Coordinator)

·         Menno Henneveld, Main Roads (Regional Roads Coordinator)

·         Ross Weaver, Department of Local Government and Regional Development (Community Infrastructure Coordinator)

·         Veronica Heard, Office of Energy (Energy Efficiency Coordinator)

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Useful Links

Documents 

·         Nation Building and Jobs National Partnership Agreement

Western Australia

·         Building the Education Revolution - Building Management and Works 

·         Housing Stimulus Package – Department of Housing

·         Main Roads Western Australia

Commonwealth

·         Council of Australian Governments

·         www.australia.gov.au/economicstimulus will keep Australians informed about the Australian economy and the Australian Government’s early and decisive action to cushion the nation from the worst of the global financial recession. The website will provide information and updates on the progress of the $42 billion Nation Building-Economic Stimulus Plan.