Opportunities In Infrastructure Investment

The Federal election hasn’t been announced yet, but the constant low-level campaigning is coalescing into some interesting suggestions. The latest comes from Labor Shadow Minister for Finance, Jim Chalmers.

On 18 January, Mr Chalmers wrote about a ‘new approach for finance’ in The Canberra Times.

While acknowledging that the Finance Department’s roles of Budget repair and fiscal sustainability would remain a top priority for a Labor government, Mr Chalmers also said that there was a ‘caricatured’ view of the department which ‘shrinks its roleeco and influence rather than enlarging it’.

Chalmers sees the Finance Department’s role expanding under Labor, going beyond what he sees as the limits of what the department is seen as capable of.

‘Australians should expect more than a reactive “no” to spending bids pitched up by other ministers. They should expect the custodian of the nation’s purse strings to create good; not just stop the bad,’ he says.

What’s this ‘good’ the shadow minister speaks of creating? Among the potential ‘fair go’ projects he thinks the department can collaborate in include: institutional investment in rental properties to tackle rent affordability; getting better value from information technology; ensuring apprenticeships are a significant part of big infrastructure projects; and creating new markets for superannuation investment in infrastructure.

Dr Chalmers also wants the Finance Department to get behind co-investment in green jobs and advanced manufacturing through the proposed Australian Manufacturing Future Fund as well as the Northern Australia Infrastructure Facility, the Clean Energy Finance Corporation, and the Australian Renewable Energy Agency.

Keynesian economic theory suggests that investment in infrastructure stimulates growth. With populations growing in the outer suburbs, all of which will need new or enhanced road and energy infrastructure, Dr Chalmers’ plans might lead to opportunities for investment in urban, green, transport and other infrastructure projects.

If you’re not sure how to assess which infrastructure projects are best positioned for investment, contact United Global Capital today on 03 8657 7640 or email [email protected] for a no cost, no obligation consultation.

Recent stories

UGC Monthly Market Update | May 2024

Join UGC’s Head of Research / Co-Portfolio Manager, Huw Davies, as he takes a deep dive into the latest financial…

Read more

If aged care advice is confusing – get advice

Many people think they can’t afford to get aged care advice, but the reality is you probably can’t afford not…

Read more

Mastering the Tax Game: Boost Your Wealth & Trim Your Tax

As the end of the financial year approaches, it’s the perfect time to refine your tax strategies and maximise your…

Read more

Nearing Retirement? Your Essential Pre-Retirement Checklist

Retirement marks a significant milestone, one that comes with both excitement and a fair share of planning. Whether you envision…

Read more

Rentvesting: A Strategic Approach to Property Investment

Rentvesting is an innovative property investment strategy where individuals rent a residence that suits their current lifestyle needs while owning…

Read more