An Infrastructure Fund will be announced in the federal budget on May 13.
“I want to be the infrastructure prime minister,” said Tony Abbott at COAG (The Council of Australian Governments) in Canberra.
And to do that he would have to help the premiers and chief ministers to become infrastructure leaders.
More detail would be announced in the budget, the prime minister said.
Treasurer Joe Hockey has previously said the Commonwealth has promised the states an asset recycling pool of money.
This would encourage the states to recycle money from asset sales into new, economy-boosting infrastructure.
The idea is to give the states an extra 15% of the sale value of their assets but only if that money is reinvested in infrastructure.
Victorian Premier Denis Napthine says he’s already signed his state to the infrastructure recycling scheme. His state was growing faster in population than the national average and needed significant infrastructure.
All the states have signed on to the infrastructure scheme. The agreement can be seen here but details will be worked out between each state and the federal government.
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