Advocacy and Policy update – May

Advocacy and Policy update – May

This month’s policy update covers two federal initiatives; the Smart Cities Plan and a summary of the Federal budget.

 

SMART CITIES PLAN

The Australian Institute of Architects welcomed the Department of Prime Minister and Cabinet’s Smart Cities Plan released at the Cities Summit in Melbourne on Friday 29 April. The building sector has long called for a whole-of-government approach to planning, energy efficiency measures, infrastructure investment and urban design, to create better long-term outcomes for cities.

Professor Ken Maher, President Elect of the Institute congratulated the Hon Malcolm Turnbull MP and Assistant Minister for Cities and Digital Transformation, the Hon Angus Taylor MP on an ambitious and timely plan for Australian cities.

‘The Institute is passionate about improving the quality of our built environment and addressing the urban challenges. Cities have been the orphan of public policy in the past and we have long advocated that the Federal government focus on Australia’s future towns and cities. This plan places cities firmly on the agenda.’

‘Architects are firm believers in strategic capital city planning to promote globally competitive, productive, sustainable and socially inclusive cities’ Prof Maher said.
The initiative was warmly received by the profession when it was discussed at the National Architecture Conference held in Adelaide on April 30.

The Transforming Populations session of the conference, chaired by Prof Maher heard about the bold ambition to create 30 minute cities, and to deliver a vision for the cities of the future where there is less reliance on cars and better transport connections, where density is done well, where infrastructure planning follows strategic urban planning, and where communities are brought together in a way that supports liveability and sustainability.

‘Collaboration between all levels of government and industry is the key to making City Deals a success’ according to Prof Maher.

‘One area that has not been addressed is the critical importance of design in building the cities of tomorrow. While the plan includes an examination of housing supply and planning changes, it is essential that architecture is used as an agency to improve the built environment and to produce sociable and equitable cities, and for the delivery design excellence to be a requirement for all project funding.’

We will be looking closely at the Smart Cities Plan over the coming weeks to provide further input. We are actively seeking members’ views. Please forward any comments to policy@architecture.com.au

 

FEDERAL BUDGET

The Federal Budget was delivered on Tuesday May 3. The following summarises some of the key points:

The Economy

  • The government expects an underlying cash deficit of $37.1 billion in 2016-17, down from an estimated $39.8 billion in 2015-16
  • The government had forecast the deficit falling to $6 billion by 2019-20 and a balanced budget by 2020-21
  • Inflation is forecast to grow to 2 per cent by 2016-17

 

Income tax

  • The upper limit for the middle income tax bracket is to rise to $87,000 from $80,000 from 1 July
  • The upper limit for the middle income tax bracket is to rise to $87,000 from $80,000 from 1 July
  • The temporary deficit levy of 2 per cent on income over $180,000 will be introduced in 2017

 

Infrastructure

  • An additional $33 billion over the forward estimates is provided to deliver road and rail upgrades
  • $594 million is to go to Australian Rail Track Corporation for the proposed Melbourne/Brisbane rail link
  • $2 billion has been allocated for investment in dams and pipelines nationally

 

Superannuation

  • Savings are to come from lowering the caps on concessional super contributions — such as employer payments and salary sacrifice — to $25,000 a year
  • The amount of super that can be transferred into zero-tax retirement phase accounts will be limited to $1.6 million

 

Small business

  • The small business tax rate will be lowered by 1 per cent to 27.5 per cent
  • The turnover threshold for small businesses increased from $2 million to $10 million giving access to tax incentives
  • From 1 July, the increase to instant write-off for equipment purchases will be extended until 30 June 2017 to businesses with a turnover less than $10 million
  • Access to tax concessions increased to more than 90,000 additional small businesses

 

Jobs

  • Youth job seekers who need to boost their job-readiness will take part in intensive pre-employment skills within five months of registering with jobactive
  • An internship program with up to 120,000 placements over four years will be introduced to help young job seekers who have been employed for six months or more
  • Job seekers will receive $200 per fortnight on top of their regular income support payment while doing an internship
  • Businesses will receive an upfront payment of $1000 when they take on an intern
  • Australian employers will be eligible for a Youth Bonus wage subsidy between $6500 and $10,000 depending on young person’s job readiness

 

Education

  • Investment to education, training and child care will increase to more than $41.8 million in 2016-17. Early education and care will increase by 9.6 per cent to $8.6 billion, schools will rise by 8 per cent to $17.6 billion, higher education will increase by 0.9 per cent to $12.3 billion and skills up 7.7 per cent to $3.3 billion
  • The Government’s Higher Education reforms have been delayed by 12 months and university fee