Productivity Commission inquiry announced to boost infrastructure funding
The federal government has announced a Productivity Commission inquiry into the funding of public infrastructure, signalling its intention to lower costs and drive investment into the construction industry.
The inquiry will consider how infrastructure is currently funded and financed in Australia, including by the Commonwealth, the states and the private sector; the rationale, role and objectives of alternative funding and financing mechanisms; an examination of the cost structure of major infrastructure projects in Australia, including where infrastructure project costs have increased considerably, compared with other countries; improvements to decision-making and implementation processes to facilitate a reduction in the cost of public infrastructure projects; and other relevant policy measures, including any non-legislative approaches, that would help ensure effective delivery of infrastructure services over both the short and long term…
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Despite their prevalence, there has been some uncertainty in relation to the income tax treatment of earnout arrangements.