Budget 2019: $20bn resources boost

Forecasts show a resources-led export surge will help underwrite the federal budget.

Treasurer Josh Frydenberg will today announce a $2.2bn boost to road safety programs across the country. Picture: Kym Smith

A resources-led export surge will help underwrite next week’s federal­ budget, with official forecasts expected to lift the total earnings from Australian export­s by $20 billion to at least $280bn for the current year.

The revised numbers, to be release­d today by the Department of Industry in its annual five-year forecast, reflect an almost­ 8 per cent increase since December and will make up a significant com­pon­ent of the larger-than-forecast budget surpluses to be ­revealed next Tuesday.

Josh Frydenberg will today announce a $2.2bn boost to road safety programs across the country. A new Office for Road Safety will be includ­ed in the long list of pre-election spending promises in the budget.

The Australian understands the budget will also contain a significant training and skills package delivering increased funding to TAFE colleges, better matching of skills to industry and business needs and potential further changes to VET loans, with significa­nt shortages in skilled workers looming for construct­ion and building. A focus on local projects in the budget, which Scott Morrison has embraced, reflects a recognition of the successful elect­ion campaign run by Victorian Labor Premier Daniel ­Andrews.

He was credited with running powerful locally driven economic, infrastructure and services delivery messages, including the remov­al of 75 rail level crossings.

Confirming the additional road safety funding to be delivered over the forward estimates to 2022-23 — much of which will go to the regions — the Prime Minister said it was about “getting­ parents, kids, and workers home more safely”.

The Treasurer said the initiatives were based on some of the 12 recommendations made by the National Road Safety Strategy inquiry­ last year. Half of the increased money would go to local governments under the Roads to Recovery program for regional projects.

An extra $550 million will be set aside for the Black Spot Program, which the government claims has already led to a 30 per cent decline in serious road accidents.

The remainder will go to safety programs for heavy vehicle operations through the Bridges Renew­al Program, Heavy Vehicle Safety and Productivity Program and Heavy Vehicle Safety Initiatives.

“Keeping Australians safe is my government’s No 1 priority,” Mr Morrison said. “Fatal road accidents are far too common. More than 1000 Australians died on our roads last year. That’s devastating.

“These are mums who didn’t make it home from work, or children that didn’t make it to school.

“These programs mean local councils decide where the money should be spent. They are in the best position to identify black spots and problem areas.

“This is why a strong economy is so important. It allows us to inves­t in safer roads that save lives.”

The Deputy Prime Minister, Nation­als’ leader and Minister for Infrastructure, Transport and Regional­ Development Michael McCormack has been given ­­­car­riag­e of a new Office of Road ­Safety. It would “provide a national point for collaboration and leadership on key road safety priorities, working closely with states, territ­ories, local government, and road safety stakeholders’’, Mr McCormack said.

“Safer roads save lives. They also create jobs in construction and boost productivity.

“The Liberals and Nationals are building safer roads and bridges. This means safer heavy vehicle operations, which is critical to our goal of reducing road trauma.”

The Department of Industry report is anticipated to revise up export value, from $260bn in Decem­ber to between $275bn and $280bn.

This will largely come on the back of record export value from minerals, including iron ore and coal, and metals such as gold, nickel and copper, and petroleum.

The mining sector contributes more than 20 per cent of total company tax revenue.

The good export news follows a report published in The Australian yesterday that revealed the government was about to be handed a potential election war chest of up to $70bn on the back of rising budget surpluses.

Some economists expect the government to also announce on Tuesday that the budget was already in surplus, bring­ing forward Treasury’s forecast by a year and marking the end of a decade of rising debt and deficits.