The ACT Treasury has been under significant pressure since the announced Federal budget cuts to the public service in May were predicted to have a disastrous impact on the ACT economy.
With the ACT Budget announced yesterday afternoon, below we have summarised some key announcements relevant to the property and construction sectors.
- $3.25m for first stage construction works for the much anticipated revitalisation of the Woden Town Centre.
- $3.38m for initial roadworks as part of the major redevelopment of the Dickson Group centre, scheduled for completion in 2017.
- $30m for construction of the Coombs Primary School. Works are expected to start in August and represent an important part of the infrastructure of the Coombs/Wright/Molonglo suburb developments.
- Cuts to stamp duty on properties sold for more than $1,455,000.
- Increased emergency services levy on commercial properties worth over $2,000,000.
- $21m for an ambulance and fire station in Aranda to service Canberra’s north.
- $1.5m for a business case study into the proposed new West Basin convention centre.
- Residential rates to rise by 10% on average.
- Reduction in payroll tax for businesses.
- There has been some speculation that the light rail project could create over 3,500 new jobs during the construction phase.
With the ACT’s economy having recently slipped from equal 3rd best performing state or territory in Australia, down to 6th*, the Government will be hoping these budget measures will be effective in countering the downturn in business confidence. As retail sales have suffered the worst annual slump in two and half years, the Government has confirmed no harsh spending cuts would be put in place simply in order to return the budget to surplus.