New figures released by the ABS today show private sector investment is soaring under the Albanese Labor Government.
Capital expenditure has far exceeded market expectations, with billions more being poured into productive investments.
This is good news for Australian businesses and good news for our economy.
New private capital expenditure (capex) grew very strongly at 6.5 per cent in the March quarter – more than six times the median market expectation.
It means capex is up 14.6 per cent through the year.
Data centres, renewable energy and battery storage drove non‑mining capex, which grew 8.8 per cent through the quarter and is up 20.9 per cent through the year.
These kinds of infrastructure projects are a priority for our government, and clearly, they’re a priority for the private sector as well.
We know capex can be lumpy, but these very welcome figures come despite the economic uncertainty caused by the war in the Middle East.
Even before these numbers, business investment was growing by an average of 3.9 per cent under this Labor Government after going backwards 1.3 per cent under the Coalition.
These figures once again show we’re well placed and well prepared to confront this global uncertainty and volatility, with faster growth than any major advanced economy at the end of last year, low unemployment, solid wages growth and stronger public finances.
This is another important reminder that some people should stop talking our economy down.
In our most recent Budget, the Albanese Government announced $3.5 billion in business tax relief measures to encourage more private investment.
This includes making the small business instant asset write‑off permanent, introducing two‑year loss carry back for companies with turnover of up to $1 billion, introducing loss refundability and expanding incentives for venture capital.
These measures are all about giving businesses the confidence to invest and will support a more productive and resilient economy.