Many businesses were negatively impacted by the pandemic last year and this had an effect that none of us could have imagined. Construction projects came to a halt, Businesses were in lockdown, kids were sent home from school, Cafés and restaurants were closed or restricted, Retail outlets and chain stores were limited to the amount of people allowed through the doors and I don’t think there was one industry that didn’t feel the impact either directly or indirectly.
Governments, both state and federal have been pro-active in kickstarting the economy with some unprecedented spending on projects that will create jobs. These jobs will fill up areas in Construction, Front-Line Services, Tourism, Small Business and Education. No matter what type of business you operate in Queensland, I’m sure you’re across any government incentives or programmes that are available currently.
The latest budget priorities to get the economy hopping again in Queensland include:
- creating jobs
- backing small businesses to support jobs and communities across the state
- increasing investment in manufacturing including $1 billion to make trains in Queensland again
- driving the largest infrastructure program in over a decade of $14.8 billion in 2020–21
- growing our regions and supporting key industries including tourism, agriculture and mining
- protecting the environment
- providing more Queenslanders with access to the skills and training they need for careers
- enhancing frontline services
- delivering lower debt than New South Wales and Victoria.
Health Services Construction Spend
Three major hospitals in Southeast Queensland including Caboolture, Logan and Ipswich public hospitals have had $979 million committed to them by providing major upgrades to overall capacity, Maternity ward upgrades and Mental health facilities. In addition to that $86.2 million committed for a Nambour Hospital upgrade, $45.5 million towards a Princess Alexandra Hospital cladding project. $36.8 million for a parking upgrade to Redcliffe Hospital and $50.5 million for a Redland Hospital parking capacity increase and Cairns Hospital will have $70 million committed for a mental health unit. Other regional hospitals and health facilities including Thursday Island, Roma, Blackall and Atherton will all receive significant multi-million-dollar funding for upgrade projects. This will significantly contribute to construction jobs and related services in Queensland meaning there’s opportunities for businesses to grow and ultimately employ people.
Education Construction and Development
$1.7 billion has been allocated towards multiple education projects which includes, building four new schools for opening in 2022/2023, Lee Street Special School in Caboolture and acquiring new land for future schools.
In addition to that – a further $1 billion over four years for school upgrades through the Great Schools, Great Future commitment. This includes $394 million for new classrooms and administration buildings, $235 million for new or upgraded multi-purpose school halls and performing arts centres, $100 million for infrastructure renewal, $180 million for capital projects at Catholic and Independent schools, $45 million for shovel-ready school projects and $20 million for the planning of new schools.
Continuation of $477 million in funding over five years (from 2019–20) for the Cooler Cleaner Schools Program to air-condition state schools and expand the Advancing Clean Energy in Schools program.
$8 million has been provided over four years for the establishment of new Homework Hubs in 120 Queensland state schools where children will be supervised by teacher aides to alleviate pressure on parents.
What does all this mean? – Construction jobs and business opportunities. It’s no secret if we keep our trades busy, building houses, constructing schools and roads and hospitals, then people are employed and spending money. This is not only good for the economy but good for household budgets, mental health and financial security of Queenslanders.
Other major projects have had funds allocated which include $1.5 billion on the Cross River rail, $3.4 billion on M1 upgrades between Varsity Lakes and Tugun, Eight Mile Plains to Daisy hill upgrade plus exit upgrades at both Yatala South and Pimpama.
Ipswich Motorway has had $400 million allocated for an upgrade from Rocklea to Darra, $709 million in joint funding Gold Coast Light Rail Stage 3A and other projects including the Centenary bridge upgrade, Smithfield Bypass on the Captain Cook Highway and social housing have all been allocated major funds totalling more than $900 million.
Performing Arts and Sporting arenas also to have funds allocated totalling more than more than $240 million.
Tendering for some of these projects will require attention to detail for both prime contractors and sun-contractors. Ressource Lease Loan and Commercial can get you fast pre-approvals on any equipment you may need to fulfill any project.
The Reserve Bank of Australia plays a major role in the economy by conducting the countries monetary policy, monitoring and assisting in bringing stability to the economy. The RBA is committed to assisting the economy bounce back and have kept the official cash rate at an all-time record low of 0.10% The cash rate influences lending rates and that’s why we are now seeing record low lending rates. Housing mortgages in the high 1.00%’s and asset funding as low as high 2.00%’s.
Not all lenders are the same. Lenders will have a certain risk appetite some lenders are strong on property lending while others tend to lend more in asset finance.
By using a good asset broker, they can assist you in finding that right lender which will cut out a lot of wasted time and energy in sourcing funds for your next project.
Many businesses are already on their way to their next growth stage and if you have a project in mind or want to take advantage of the Government big spend Ressource lease loan & Commercial would love to assist you get under way.
Thanks for taking the time to read – all the Best
Adam
