Everyone knew the slump had to come. It was a huge driver of economic growth but mining investment ‘boom’ it was and for all ‘booms’ the noise dies away. However, the reality is no other sectors can fill the void that mining investment has left. But…it’s not all doom and gloom…!
The RBA’s decision to cut interest rates to simulate private sectors proved to be a good one. Residential properties sector saw a significant jump in growth over the last two years which you may be able to witness to. But that’s not all: this had an interesting spin-off affect for NSW in particular – the stamp duty income!
The Stamp Duty income collected by the NSW treasury was a mere 22% MORE than expected!! This gave the State Government an extra 1.3 billion dollars on top of any other revenue allowing investment in some major infrastructure projects such as the Westconnex, Sydney metro and Pacific Highway upgrades.
Ok road and bridge works may not be a part of your direct portfolio but activity breeds activity. An increase in infrastructure projects is looking long term to cater for the expected growth in employment and population along these routes. And hey – these people will need somewhere to live, their kids will require schooling and albeit not too often, they will need a hospital a time or two.
Speaking of hospitals, Health projects are in line for a boost from the Stamp Duty surplus too with the Gosford Hospital getting a revamp and funding allocated to the Westmead and St George’s hospital to name a few.
So with Australia growing population and needs, the construction sector will always be there – thank you construction sector…for easing the mining downturn pain and helping Australia forward!
CURRENT PROJECTS BY A CLASS ENGINEERING
KFC Flowerdale - Entrance Facade Frame
Caltex Seven Hills - Shop, truck awning and car awning
Katoomba Factory - Structural Steel
Caltex St Ives - Car Awning
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