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Australia has been a world leader in the use of privately financed public infrastructure projects (PFPI), otherwise known as public private partnerships (PPPs), since their first use in the modern-PFPI-era commencing in 1980. This article argues that Australian PFPI has evolved through four key phases and tracks the key inflection points in debate. Critical dimensions in these phases include the enabling policy apparatus, tax status, competitive tension, risk transfer, accounting treatment, value-for-money, government guarantees and hybrid finance. It suggests that the evolution of PFPI policy can be attributed to political tendencies, responses to public scrutiny and advances in technical approaches.

From turnpikes to toll-roads: a short history of government policy for privately financed public infrastructure in Australia