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Budget outcomes relevant to the Bicycle Industry
We did not expect much joy for the funding of bicycling infrastructure, programs or active travel from this budget but we were not completely disappointed with efforts to promote the benefits of cycling in the urban context bearing fruit.
National Urban Policy
The key outcome of this budget is the investment in the Government’s
National Urban Policy. This was developed by the Major Cities Unit in
the Department of Infrastructure and Transport following an extensive
consultation process in which the Cycling Promotion Fund has been
extensively engaged for the last two and a half years including a major
submission to their inquiry.
The Sustainable Communities package is in 2 parts and provides $120m in new funding:
I. The Liveable Cities component allocates $20m to State, Territory and local governments for planning, design and/or capital works which improve the quality of life in our cities; will fund demonstration projects including:
- Residential developments that improve access to services and public transport.
- Mixed use precincts that optimise public transport, and
- Promote or incorporate active travel through walking and cycling.
II. The Suburban Jobs component allocates $100m to plan and provide for employment precincts and business hubs close to residential areas in order to reduce travel times to work and services. Designed to improve productivity and liveability and reduce congestion.
Minister’s Media: http://www.minister.infrastructure.gov.au/aa/releases/2011/May/budget-infra_04-2011.htm
Regional Australia
Regional areas benefit from a bigger weighting in their Roads to Recovery funding (increases to $244m of the total of $350m).
$100m for economic and community infrastructure such as bridges, child care centres and sporting facilities will be delivered by the Regional Development Australia Fund, with a second round of $100m funding to be held in late 2011. Both of these may be available for projects that build bicycle infrastructure.
Tax Reform
Tax reform delivers a long-awaited reform to the FBT concession that clearly impacted on environmental sustainability by providing an incentive for Australians to drive extra kilometres unnecessarily. A flat rate of 20% will now apply to the FBT rebate for cars provided by employers.
The small businesses that make up the vast majority of the bicycle industry will benefit from some small business tax concessions. These include:
- From 2012-13, an early reduction in the company tax rate to 29%.
- Immediate deduction of up to $5,000 for motor vehicles acquired from 2012-13 with the remaining cost depreciated at 30% (which was the previous treatment for the entire cost).
- PAYG instalments are reduced for the majority of small businesses for 2011-12, providing a cash flow benefit.
Climate Change
While the carbon tax is not included in these budget papers, the Budget sets out some principles of how the price on carbon will be applied in the budget update later in the year. Key points:Overall impact of carbon price will be broadly budget neutral.
- More than 50% of the revenue generated will be used to assist households.
- All revenue will be used to assist households, businesses and fund climate change programs.
This last point (climate change programs) is a key area the CPF will focus it efforts on to ensure funding is improved for bicycling as a key part of an environmentally sustainable active travel and public transport sector.
Stephen Hodge
Government Relations Manager
Cycling Promotion Fund
10 May 2011
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