South Australia continues to buck a nationwide investment slump with a new report showing the total value of capital investment projects in the State has risen to $42.6 billion.
This is an increase of 0.7 per cent on the quarter and 14 per cent over the last 12 months.
Nationally, the value of projects in the investment pipeline dropped 4.6 per cent on the quarter and 6.8 per cent over the last 12 months.
Investment and Trade Minister Martin Hamilton-Smith said the Deloitte Access Economics Investment Monitor December Quarter report, released today, showed South Australia recorded the second highest year-on-year growth of the states and territories.
“Importantly, the value of South Australian projects ‘committed’ or ‘under construction’ rose by $426 million over the quarter, which means more construction jobs for South Australians,” Mr Hamilton-Smith said.
“This was largely driven by new projects including the $300 million Adelaide GPO precinct development (‘committed’) and the $350 million redevelopment of the Westfield Marion shopping centre (‘under construction’).
“The report also highlights construction on the $896 million South Road upgrade project is underway.”
The 2015-16 State Budget included a $10.8 billion capital investment program over the next four years to support 4700 jobs per annum.
Mr Hamilton-Smith said the State Government’s $670 million in tax cuts for business would also drive private capital investment in South Australia.
“The recent Mid-Year Budget Review brought forward tax cuts to non-residential stamp duty making South Australia the best place to invest and do business,” he said.
“Our tax cuts will encourage developers to buy commercial property in South Australia knowing they are paying the lowest stamp duty of any other state in the country.
“And by 1 July 2018, developers will be able to purchase commercial property in South Australia stamp-duty free.”
The report follows the Development Assessment Commission’s (DAC) approval last week of the $300 million Adelaide Casino expansion, paving the way for construction to begin by the middle of the year.
The major CBD project is expected to create 500 jobs during construction and 1000 ongoing jobs once complete.
It will form part of a major redevelopment of the Riverbank Precinct, including the $610 million Festival Plaza redevelopment.
DAC last week also approved a $200 million high-rise residential and retail complex on North Tce, which will include the demolition of the HQ nightclub.
The Deloitte Access Economics Investment Monitor records major capital investment projects, exceeding $20 million, from the time first intentions are publicly announced through to the completion of construction.