Australian governments spend around $43 billion in capital works each year. There is wide variation between the states with Queensland investing 6.9% of gross state product (GSP), the Northern Territory and ACT 6.6%, New South Wales 3.8% and Western Australia 3.6% (See Table 1).
Table 1 STATE CAPITAL INVESTMENT
Australia, 2006-07
| AUD$mill. | Investment | Gross State Product | % |
| New South Wales | 12,805 | 335,144 | 3.82 |
| Victoria | 6,828 | 247,440 | 2.76 |
| Queensland | 13,431 | 195,704 | 6.86 |
| South Australia | 1,895 | 69,540 | 2.73 |
| Western Australia | 5,075 | 141,368 | 3.59 |
| Tasmania | 650 | 21,088 | 3.08 |
| NT & ACT | 2,383 | 36,080 | 6.60 |
| Australia | 43,067 | 1,046,364 | 4.12 |
SOURCE ABS 5220 2006-07 Current Prices
Plant and machinery account for around 69% of public capital spending and construction and engineering expenditure 31%.3 State spending on non-dwelling construction and civil works is mainly for roads, water storage and supplies, sewerage and drainage works.4 The majority of this activity is performed by the private sector for governments at the national, state and local levels.
In Queensland, purchases of non-financial assets were $5.5 billion in 2006/07 and $6 billion in 2007/08 and this level of spending is also forecast for 2009/10 and 2010/11.5 The majority of Queensland's capital spending will go to infrastructure assets and services.6
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3 ABS 2007, 2008.
4 ABS 2008, Tables 12 and 13.
5 Queensland Government 2008, p. 165.
6 ABS 2008.