Skip to main content
MENU
Subscribe
  • Sign Up Free
  • LOGIN
  • Subscribe
  • Topics
    • Alternatives
    • Consultants
    • Courts
    • Defined Contribution
    • ESG
    • ETFs
    • Face to Face
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Partner Content
    • Pension Funds
    • Private Equity
    • Real Estate
    • Regulation
    • SECURE 2.0
    • Special Reports
    • Washington
    • White Papers
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • WPS Innovation Awards
    • Eddy Awards
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • ESG Sustainability - Gaining Momentum
    • ESG Investing | Industry Brief
    • Innovation in ESG Investing
    • 2023 ESG Investing Conference
    • ESG Rated ETFs
  • Defined Contribution
    • Latest DC News
    • The Plan Sponsor's Guide to Retirement Income
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • Trends in DC: Focus on Retirement Income
    • 2023 Defined Contribution East Conference
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Research Center
    • The P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
    • 2023 Canadian Pension Risk Strategies
    • 2023 Retirement Income
Breadcrumb
  1. Home
  2. Online
May 17, 2011 01:00 AM

Investors embrace Aussie budget infrastructure pledges

Miranda Ward
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print

    The increase in funding for Infrastructure Australia and expansion of its role, announced in the Australian federal budget May 10, has been welcomed by the institutional investment industry.

    The A$36 million (US$38.04 million) allocated to IA over the next four years should allow the panel to review national infrastructure priorities, assess projects and provide advice on infrastructure financing and reforms that promote productive investment in Australian infrastructure, according to the budget. (Infrastructure Australia is a statutory entity, launched April 9, 2009, that advises governments, investors and asset owners on a wide range of infrastructure issues.)

    It was made clear that IA will work with state governments and the private sector to develop a deeper pipeline of priority infrastructure projects valued at more than A$100 million.

    The Association of Superannuation Funds of Australia welcomed the funding, saying the government's budget recognized the role that private investment played in developing infrastructure that was in the national interest.

    “There has been a lot said about the potential of super funds to finance infrastructure, and we have been speaking with IA and Infrastructure Partnerships (Australia) for a while on this,” said ASFA CEO Pauline Vamos.

    Ms. Vamos said the key concern for ASFA was development-stage funding — where superannuation funds were often sought as equity investors — and the use of tax incentives to make these deals more appealing.

    “The tax incentives to really encourage funds to invest in greenfield (deals) are there,” she said. Greenfield deals refer to development projects in which future cash flows are less certain.

    “They're putting a lot more robustness around IA, so what that means is that a pipeline will be developed. The scrutiny of what is in the pipeline, the governance around it and the ownership of it will be part of the new governance arrangements that IA has been asked to put in place. So that means (there is) a bit of a safety net for superannuation funds.”

    AIST CEO Fiona Reynolds, CEO of the Australian Institute of Superannuation Trustees, said these measures to increase infrastructure investment opportunities will provide encouragement for super funds to invest in greenfield deals.

    "Super funds have traditionally been heavily involved in infrastructure investment to maintain diverse asset allocations. These measures will provide encouragement for super funds to continue to invest in the nation's infrastructure," said Ms. Reynolds.

    The budget's infrastructure initiatives would help make infrastructure a more attractive investment for superannuation funds and fund managers, said John Brogden, CEO of the Financial Services Council.

    “The tax changes will undoubtedly make projects on IA's national priority list more favorable to investors,” he said.

    “The amendments to the change of ownership tests remove a tax anomaly and recognize that infrastructure projects are long-term investments.”

    Infrastructure investment specialist Hastings Fund Management endorsed the proposed change as they would see “IA adopting a more proactive role in determining the nation's infrastructure priorities,” said executive director of unlisted infrastructure at the manager, Richard Hoskins.

    “An extensive pipeline of projects will provide greater certainty to private sector investors and superannuation funds,” he said.

    However, Mr. Hoskins said there was substantial work ahead in order for the government to increase the level of private sector and superannuation investment in Australian infrastructure.

    “IA, with its new mandate and increased autonomy, in partnership with key participants in the infrastructure industry, must promptly and forcefully pursue a national reform agenda that genuinely focuses on removing roadblocks to improved project efficiency, delivery and cost.”

    Damian Hill, REST Industry Super CEO, said the funding was a good step.

    “Superannuation funds have been calling for greater certainty around the project pipeline and I think we will start to get that with a national construction schedule,” he said.

    “We've also been talking about recognition from all levels of government about the need to examine the risk-sharing. There are a lot of greenfield investments that need to be made in Australia, and superannuation funds only have a limited appetite for greenfield investment, so how the governments use their relative balance sheets to make both greenfield and existing infrastructure available for private investments will be critical.”

    Miranda Ward writes for I&T News, Sydney, Australia.

    Recommended for You
    memorial-day-flag_i.jpg
    No P&I Daily on Memorial Day
    Good_Friday_i.jpg
    No P&I Daily on April 7
    ESG: Seeking Alignment with Climate Change
    Sponsored Content: ESG: Seeking Alignment with Climate Change

    Reader Poll

    May 1, 2023
     
    SEE MORE POLLS >
    Sponsored
    White Papers
    Middle market credit: We’re gonna need a bigger boat
    Alternative Credit: Differences and Opportunities in CLOs and Credit Risk Shari…
    Fixed Income is Attractive, but Beware of "Fake" Yield
    Counting on a Crisis: A Catalyst for Investment Innovation?
    A Strategic Allocator's Guide to Productivity and Profits
    Biodiversity: why investors should care
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    December 12, 2022 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Content Solutions
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Consultants
      • Courts
      • Defined Contribution
      • ESG
      • ETFs
      • Face to Face
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Partner Content
      • Pension Funds
      • Private Equity
      • Real Estate
      • Regulation
      • SECURE 2.0
      • Special Reports
      • Washington
      • White Papers
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • WPS Innovation Awards
      • Eddy Awards
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • ESG Sustainability - Gaining Momentum
      • ESG Investing | Industry Brief
      • Innovation in ESG Investing
      • 2023 ESG Investing Conference
      • ESG Rated ETFs
    • Defined Contribution
      • Latest DC News
      • The Plan Sponsor's Guide to Retirement Income
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • Trends in DC: Focus on Retirement Income
      • 2023 Defined Contribution East Conference
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Research Center
      • The P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
    • Careers
    • Events
      • View All Conferences
      • View All Webinars
      • 2023 Canadian Pension Risk Strategies
      • 2023 Retirement Income