Victorian Government Budget building a strong future for construction industry
Posted on Nov 25, 2020
The 2020/21 Victorian State Budget includes significant investment to build a pipeline of work for the building and construction industry.
The focus on capital investment will stimulate employment and boost jobs. Spending on skills development will deliver a pipeline of trained workers ready for these projects and beyond.
Stamp duty concessions – a 50% reduction for new builds and 25% for existing dwellings under $1m will drive our property market and create thousands of new dwellings and jobs.
The budget is investing significant amounts to stimulate our economy in response to the COVID-19 pandemic and create jobs.
In addition to housing, education and transport infrastructure spending, the State Government has announced various training initiatives which will carve out new career paths for construction trainees and apprentices. This includes an ongoing commitment to Women in Construction, which is designed to create a more diverse workforce and share the benefits of well-paid employment.
Some of the major investments and stimulus relevant to our industry include:
- Big Housing Build - total of $6bn
- $5.3bn direct investment for social housing (both new build and the purchase of distressed private assets to be managed by the not-for-profit sector and rented to people on low incomes)
- $700m in tax breaks and incentives including land tax grants and first home buyers grant, including a $500m Victorian Homebuyers Fund, entailing a 50% land tax discount for build to rent - estimate 5000 additional homes
- $1.9bn Schools Investments – over 7,000 construction and supply chain jobs including 11 new schools and upgrades to over 200 existing schools
- $1.1bn investment in the construction and maintenance of Metropolitan Hospitals
- Arts Precinct- $1.4bn investment - 5,000 jobs building a new gallery for the NGV and outdoor performing arts space alongside infrastructure upgrades at the Arts Centre on St Kilda Road
- Suburban Rail Loop $2.2bn, including $420m in 2020/21 - 20,000 jobs over length of project including 2,000 positions for cadets, trainees and apprentices
- Geelong Fast Rail $2.2bn - 2,800 jobs
- Wyndham Law Courts $272m
- $876m New Jobs Tax Credit
Training and apprenticeship initiatives outlined in the budget include:
- $19.3m apprenticeships growth strategy, including funding for Apprenticeship Support Officers to support vulnerable apprentices and the Apprenticeships Innovation Fund, including dedicated funding to encourage uptake of apprenticeships amongst underrepresented groups
- 1,500 construction apprentices and trainees
- $33m Big Build Traineeships- linking trainees/apprentices to major projects
- $5m for Women in Construction initiative
- $250m wage subsidy for apprentices across all industries – supporting a minimum of 10,000 apprentices
Not only will these investments enable more places for apprentices, but it will allow for better continuity by partnering with group training organisations to place apprentices on major projects.
More information and the full budget announcement can be found via budget.vic.gov.au
Find out what others in the industry are saying via the links below:
Other news you might like
Jul 22, 2022
Construction Industry Snapshot - July 2022 As an industry we are facing a multitude of challenges including some difficult economic conditions expected thi...Read more