6-05-2009

$11.5bn Capital Works stimulus

The Victorian government has announced a boost to public sector capital works to $7bn from $4.8bn in 2008/09.

When the Federal capital works are added the total is $11.5bn in 2009/10.

Roads, hospitals, schools, rail, water & sewerage will all receive boosts in funding in the coming year. Nearly $1bn is allocated to rebuild 2,000 homes and many private and public sector businesses in those areas hit by the February 2009 bushfires. This will be added to more than $330m raised by the bushfire appeal.

Local government also has been given additional funding from both State and Federal governments for 2009/10.

This is a massive stimulus program that will give many contractors confidence going forward.

The stimulus is to overcome a shortfall in business investment anticipated over the 2009/10. Housing will be one notable area of the economy that appears to be unaffected. Population projections of 1.6% for Victoria or in English approximately 75,000 more people living in the state by June next year will sustain this industry.

Plant & Equipment sales should be boosted by the above stimulus as contractors gain work on the many government projects given the green light. In conjunction with the government 30% investment allowance, sales /orders should build toward the 30th June 2009 deadline.

13-11-2008

Interest Rates Tumble!

Interest rates are certainly in the news and Corporate Finance has secured substantial lines of credit for our customers. Rates have dropped so far 2% and this downward trend will continue into the near future.Demand isn't as high as last year however a 2 speed economy is being seen increasingly. Clients currently borrowing money have long term contracts and have seen little downside in the economy. The contracts could be with government departments or large public company's such as a supermarket chain but there business's continue to grow.Real estate has been quite busy with an influx of clients wishing to re-finance their current mortgage to some very special deals currently on offer here at Corporate Finance please give your consulatant a call to get details.With New Year not far away and money tipped to be even cheaper there's never been a better time to invest in new Plant & equipment or Motor Vehicle.