“The tax changes will undoubtedly make projects on IA’s national priority list more favourable to investors,” he said.

“The amendments to the change of ownership tests remove a tax anomaly and recognise that infrastructure projects are long-term investments.”

Infrastructure investment specialist Hastings Fund Management endorsed the proposed change as they would see “IA adopting a more proactive role in determining the nation’s infrastructure priorities,” said executive director of unlisted infrastructure at the manager, Richard Hoskins.

“An extensive pipeline of projects will provide greater certainty to private sector investors and superannuation funds,” he said.

However, Hoskins said there was substantial work ahead in order for the Government to increase the level of private sector and superannuation investment in Australian infrastructure.

“IA, with its new mandate and increased autonomy, in partnership with key participants in the infrastructure industry, must promptly and forcefully pursue a national reform agenda that genuinely focuses on removing roadblocks to improved project efficiency, delivery and cost.”

REST Industry Super CEO, Damian Hill, said the funding was a good step. “Superannuation funds have been calling for greater certainty around the project pipeline and I think we will start to get that with a national construction schedule,” he said.

“We’ve also been talking about recognition from all levels of government about the need to examine the risk-sharing. There are a lot of greenfield investments that need to be made in Australia, and superannuation funds only have a limited appetite for greenfield investment, so how the governments use their relative balance sheets to make both greenfield and existing infrastructure available for private investments will be critical.”

Hill also said the Federal Government’s ongoing commitment to a 12 per cent superannuation guarantee, and the $500 tax rebate for low-income earners from superannuation contributions tax, were positive outcomes of the 2011-12 Budget.

The excess contributions tax, “the get-out-of-jail-free part of that”, was welcome but didn’t go far enough, he said.

“The fact that it’s prospective is an issue,” he explained.

AIST’s Reynolds echoed Hill, saying the excess contributions tax will create fa fairer system for individuals who may have accidentally breached their cap, but agree with Hill in that it doesn’t go far enough.

“We have some concerns that the measure is only available once , and doesn’t allow for future errors. We encourage the Government to continue this on an ongoing basis,” said Reynolds.