Tasmania Report - June 2010

Invitation
The gala event, the CCF Earth Awards, part of Australia’s premier civil construction industry awards, is being held on July 16th at Wrest Point in Hobart. They recognise and reward project excellence across all aspects of civil construction. Focusing on outstanding and innovative construction techniques, industry best practice environmental and project management, the Awards categories are structured to suit every type of project. State winners of each category are awarded on the night.
More information: Kayla-Bree Damm, 03 6245 0978
Stakeholder communication
CCF recently met with the chair of On Stream, Geoff Willis and the Southern Water executive manager – asset and service strategy to discuss improvement opportunities for all three water and sewerage corporations.
We discussed the impact of communication techniques, planning delays and cost implications to contractors and clients groups at length, and positive outcomes were agreed upon. We will continue to communicate with the water corporations in order to provide them with feedback from industry, and also provide an avenue for them to communicate with industry, especially where there may be changes and/or important information.
Regular meetings are held with other key stake holders that have either a direct or indirect influence on the sustainability of the civil industry, and we would encourage comment to be provided to us where there maybe concerns, or even better where a positive outcome has been reached.
Henry Tax review
With the release of the long awaited Henry Tax Review, Australia will see tax reforms and potentially greater returns back into the economy from the Resources Super Profit tax, imposed on the resources sector, but only if it passes through the senate.
Henry review measures include:

• Reducing the corporate tax rate to 28% from the 2014/15 income year;
• Writing off of assets costing less than $5000 immediately, and other simplified capital allowance arrangements for small businesses, from 2012;
• Increasing progressively the superannuation guarantee rate to 12% by 2019/20, and extending the superannuation guarantee to those aged 70-75, by 1 July 2013;
• Providing low income earners a superannuation contribution tax rebate, and raising the concessional superannuation contribution cap to $50,000 for certain individuals aged 50 and over, from 1 July 2012; and
• Introducing a resources super profit tax from 1 July 2012 and a resources exploration rebate from 1 July 2011.

The Budget impact of these measures is forecast to be a net additional $3.18bn in revenue over the next four years.
Other Henry Tax Review recommendations would not be implemented according to the government, including certain changes to negative gearing, and a reduction in capital gains tax discount, the abolition of luxury car tax, re-indexation of fuel excise and the volumetric taxation of alcoholic beverages in the middle of a wine glut.
State Budget, infrastructure funding
The state budget will be released by the time you are reading this article. Hopefully the pre election promises will start to flow across the state, with the release of the $90m, 4 year, Community Roads Package.
We have significant infrastructure projects underway at this time. However many contractors are not involved with the completion of these projects and winter is here. These contractors are looking for works that will allow for the sustainability of their businesses, continued employment opportunities directly within our sector and the natural growth of their businesses. 
A media release from the recent Federal budget, suggested that Tasmania continues to benefit from record investment, and suggests that investment in our state’s infrastructure includes a further $169m.That is to be spent on road and rail networks and is part of the Nation Building Program. With this budget top up it now sits at over $800m for the 2008/9 and 2013/14 periods.
One would suggest that this is drop in the ocean when considering the infrastructure spending allocated to other states, especially those with rich resource deposits. Tasmania also has these areas that are rich in minerals, but they don’t appear to have the same support.
Our road network is crying out for funding as many pavements reach the end of their life cycle and “band aid repairs” are applied in order to extend their life cycles. Ultimately we will need significant investment in infrastructure funding, to support the potential increase in road traffic, if the rail network is not upgraded.
Another impact onto the budget and how funding may be allocated, is the significant downturn in forestry operations and in particular, hard wood processing. Many workers are looking at our sector for a more secure future and we are fielding many calls from those workers who have already lost employment with in this sector or are planning to leave due to the uncertainty of sustainable employment.
Other industry sectors are closing shop and moving away from the state and this is going to put even more pressure of the infrastructure budget to ensure current businesses are sustainable into the future and have the potential to offer greater levels of employment.