State responses to COVID-19 economic impacts

In response to COVID-19, state and territory governments have announced new measures to stimulate economic growth. The below brief summarises the new measures put in place by each state and territory to accelerate state and private sector capital works projects, and stimulate economic growth.

Victoria

On 18 May, the Victorian Government announced a $2.7 billion Building Works Package to fund and support education and transport infrastructure, including: • $438.6 million to build ten new schools and deliver a further four stages of new school projects to open in 2022 • $388.8 million to deliver 57 upgrades and modernisation projects at schools • $130 million to the Established Areas Program to provide additional capacity at nine schools • $114.5 million to purchase and refurbish relocatable school buildings

• $55 million for TAFE maintenance work • $27.7 million for the Building Blocks program • $20 million for a Minor Capital Works Fund to bring forward small priority projects • $10 million to support infrastructure modifications for the 2021 school year • $382 million in upgrades and maintenance for tourism destinations • $328 million for resurfacing and patching roads, regional track improvements, train upgrades and pier upgrades • $100 million for critical upgrades of CFA and SES stations, alongside disability accommodation, mental health and aged care facilities On 19 May, the Victorian Government announced a further $350 million Victorian Higher Education State Investment Fund to support universities with capital works focusing on new technology and infrastructure, separate to the previously announced Building Works Package. In April the Victorian Government created the Building Victoria’s Recovery Taskforce to assist the State’s building and development industry during the COVID-19 period, co-chaired by Roger Teale, Jude Munro AO and Stan Krpan. Planning Minister Richard Wynne said the newly created taskforce will “help deliver existing projects more efficiently and assist new projects to get off the ground faster,” by investigating new planning and investment opportunities. New South Wales

The New South Wales Government has announced it is fast-tracking maintenance and construction on capital works projects to stimulate the local economy, including: • $220m upgrade of an NSW-QLD electricity interconnector, now due to begin in September 2021, 18 months before schedule • $285 million Powering Sydney’s Future project fast tracked to begin construction within 2 months

• Re-asphalting on the Sydney Harbour Tunnel • Resurfacing of the M5 East Motorway Existing infrastructure projects have also continued to progress as planned, with work on the Sydney Football Stadium, M6 Stage 1, Sydney Metro West project and Central Station continuing through the COVID-19 period.

NSW Transport Minister Andrew Constance has called for asset recycling – the sale of public assets to reinvest in new projects – as a way to fund these projects. On 20 April, it was announced the NSW Government was “pressing ahead” with a scoping study to decide whether to sell or retain its 49 per cent stake in the 33-kilometre WestConnex motorway. The NSW Government has also fast-tracked planning processes through its Planning System Acceleration Program, which will: • Accelerate planning approval processes of State Significant Developments (developments believed to have State significance due to size, economic value or potential impacts), development applications and rezoning projects • Increase the number of works that can be carried out without a planning approval • Support councils to fast-track locally and regionally significant development applications • Invest $70 million to co-fund new infrastructure in North-West Sydney, including roads, drainage and public parks • Manage the current backlog in the Land & Environment Court through the appointment of two new Commissioners. The NSW Government has thus far appointed Peter Achterstraat as a temporary Productivity Commissioner, tasked with overhauling the current system of developer levies and contributions. The Commissioner is due to deliver a report into the changes on March 31 2021 On 28 April 2020, the NSW Government announced the first tranche of accelerated planning projects, including: • Snowy 2.0 Main Works

• Powering Sydney’s Future • Ivanhoe Stage 1 • Meadowbank E&E Precinct Schools Project • University of Newcastle Campus Stage 1A • Alex Avenue Public • Doncaster Avenue Student Accommodation • West Nowra Landfill Expansion • New Warnervale Public School • Bunnings Warehouse Leppington • Visy Dry Recyclables Facility • Young High School Library • Horsley Park Brickworks Plant 2 Upgrade • St Anthony of Padua Catholic College

• Penrith Resource Recovery Facility • Palmers Island Marine Based Industry • Bankstown LEP • Lane Cove LEP • North Sydney LEP – Pacific Highway

• North Sydney LEP – Christie Street • North Sydney LEP – Atchinson Street • Camden LEP • Cambelltown LEP • Mt Druitt LEP Queensland On May 19, the Queensland Government announced $400 million road stimulus package as part of the Queensland Government’s Unite and Recover Queensland Jobs package, including: • $37.5 million for the Mount Lindesay Highway upgrade • $35 million Lawrie Street upgrade • $30 million Beaudesert Road intersection upgrade • $18 million Six Mile Creek Bridge upgrade • $15 million Centenary Motorway and Logan Motorway interchange upgrade • $15 million in additional funding for the Cleveland-Redland Bay Road duplication • $13 million Proserpine-Shute Harbour Road duplication upgrade • $10 million Brisbane, Chermside and Glebe roads intersection upgrade

• $10 million Beaudesert-Beenleigh Road upgrade • $9.5 million for the Beckmans Road and Cooroy-Noosa Road intersection upgrade • $8.9 million to widen Herveys Range Developmental Road near Townsville • $3.75 million Caloundra Road and Ridgewood Road intersection upgrade • $3.5 million Mulgrave Road and Brown Street upgrade in Cairns • $1.5 million Gold Coast Highway and Toolona Street pedestrian upgrade Alongside these transport projects, the Government announced the fast tracking of two key projects, including: • $14.8 million of support for the CopperString 2.0 transmission line from Townsville to Mount Isa, to begin construction in the first half of 2021 • $5 million transmission line to secure Brisbane Valley power supply The Queensland Government has also announced a $100 million Resources Community Infrastructure Fund (RCIF) over the next three years to support projects aimed at improving economic and social infrastructure within Queensland’s resources communities. Western Australia The Western Australian Government has announced progress on the construction of major transport infrastructure projects, including: • Ongoing METRONET aligned projects including Infrastructure Australia approval for the Morley-Ellenbrook Line, completion of two social housing developments, request for proposal issued for METRONET Lakelands Station

• Construction to commence on the $18.34 million Esperance TAFE campus • Completion of the $1.02 billion NorthLink WA between Morley and Muchea • Completion of tunnelling on Metronet’s Forrestfield-Airport Link on April 21 On 23 April, in an effort to maintain a skilled construction workforce, the Government announced $24.5 million for the construction workforce, including support for employers, apprentices and trainees.

To aid these infrastructure projects, the Government also announced major planning reforms on 20 May, introducing a new development application process for “significant, job-creating projects” for the next 18 months. Under this new process, “significant developments” are defined as: • Proposals with an estimated cost of $30 million or more • Residential dwelling proposals with 100 or more dwellings; or

• Commercial developments with a minimum 20,000sqm of commercial floor space • Regional or tourism projects that may not meet the above criteria but are considered important to assist in the COVID-19 recovery The Government has tasked the Western Australian Planning Commission with decision-making on these projects in the short term, but has proposed to create a new Special Matters Development Assessment Panel in the long term. South Australia On 15 May, the South Australian Government announced $1.3 billion for education capital works projects over the next two years, including: • A new performing arts building at Hamilton Secondary College • Redevelopment of three buildings at Christies Beach High School • 16 new learning areas at Wirreanda Secondary School • Upgrades to multiple metropolitan primary schools including Greenwith, Elizabeth North, Ardtornish and Aldbinga Beach School • Upgrades to regional schools including John Pirie Secondary School, Moonta Area School and Kingston Community School On 8 May, the South Australian Government announced planning and construction on transport projects were being fast tracked, including: • $22 million package of works on the Ngarkat Highway • Package of works on the Lincoln Highway

• $15 million package on the Browns Well Highway • $6.5 million package of works on Cleve Road • $8.5 million package of works on the Sturt Highway • $7.8 million package of works on the South Eastern Freeway • $14 million for construction of road access upgrades for Thomas Foods International

In March, under the previously announced $1 billion stimulus package, the South Australian Government, together with local councils, announced it would double the annual Planning and Development Fund to $50 million to support local jobs. ACT The ACT Government has accelerated infrastructure projects during the COVID-19 crisis, with the Chief Minister outlining “we are taking this opportunity to bringing forward projects which deliver much needed upgrades and maintenance to public spaces and community facilities.” The ACT Government has thus far announced $9.75 million in works for: • Upgrades and extensions to footpaths and cycleway networks

• New pedestrian crossings in Narrabundah and Belconnen, as well as the installation of traffic calming measures in Weston • Improving facilities for staff at Transport Canberra depots • Open Space landscaping improvements Northern Territory The Northern Territory Government has temporarily amended the Planning Act 1999 to allow for the waiving of planning applications. Under changes announced on 20 April, planning rules in the Territory will be temporarily lifted to accelerate the building process on projects related to the Business Improvement Scheme and Home Improvement Scheme. Planning and Infrastructure Minister Eva Lawler said the changes “means works get underway quicker and we keep people employed during this critical time.” Existing infrastructure projects have also continued to progress as planned, with the NT Government announcing: • Completion of new cricket club change rooms, viewing platform and a new maintenance shed at Freds Pass Sport • Release of a tender for the construction of campsites and access roads as part of the Litchfield Central Valley project • Release of a tender for the design of a new art gallery at the State Square Precinct • Release of a tender for design, development and construction of a community space in the Darwin CBD

Tasmania Premier Gutwein announced this week that he had tasked Treasury with an “immediate review” of the State’s $3.7 billion infrastructure program to identify projects that could be fast-tracked and commenced immediately. Specifically, the Premier highlighted housing, school maintenance and Government buildings as possible projects, and suggested the “re-profiled” construction and infrastructure program would be announced within weeks. In April, the Tasmanian Government announced a $10 million School Revitilisation Maintenance Package to bring forward scheduled maintenance projects. The Government has thus far identified 280 maintenance projects across 125 sites.