2018-19 BUDGET – INFRASTRUCTURE: BUSTING CONGESTION, CONNECTING OUR REGIONS, IMPROVING SAFETY AND CREATING JOBS
THE Liberal and Nationals Government will invest more than $75 billion in nationally significant transport infrastructure projects over the next 10 years, including new funding of $24.5 billion for projects and initiatives which will improve Australians’ lives across every State and Territory.
This investment will bust congestion in our cities to get commuters home sooner and safer, move freight more efficiently to our ports and markets, better connect our regions, grow our economy and create thousands of new local jobs.
It demonstrates a commitment to a credible, decade-long pipeline of infrastructure projects focused on driving economic growth, increasing productivity and connectivity and creating new employment opportunities. Our pipeline will create approximately 50,000 additional direct and indirect jobs over the next decade.
The Budget invests in new major rail and public transport infrastructure including: a commitment of up to $5 billion for construction of a rail link to the Melbourne Airport; $1.1 billion towards further components of Perth’s METRONET program; $400 million to duplicate a section of the Port Botany Rail Line and construct the Cabramatta passing loop; $390 million for the upgrade of the Beerburrum to Nambour Line on the Sunshine Coast; $300 million for the Brisbane Metro project; and $220 million for the electrification of the Gawler Line in northern Adelaide.
It also delivers major urban and regional road projects including: $1 billion for the M1 Motorway corridor; $3.3 billion for the Bruce Highway in Queensland; $1.4 billion for Adelaide’s North-South Corridor; $971 million to build the Coffs Harbour Bypass on the Pacific Highway in New South Wales; $1.75 billion for the new North East Link in Melbourne; $560 million to deliver Stages 2 and 3 of the Bunbury Outer Ring Road in Western Australia; $280 million for regional road works in the Northern Territory; $461 million to build a new Bridgewater Bridge to reduce travel times and improve traffic flow into Hobart; and a $200 million investment in the Barton and Monaro Highway corridors linking the Australian Capital Territory to New South Wales.
These investments are part of the Government’s strong economic plan and are only possible due to our prudent management of the Budget. Through strong governance arrangements linked to funding commitments, the Government will ensure Australians get value for money on our investments and continue to press the States and Territories to provide their fair share of funding. The Government also remains committed to exploring every opportunity for private sector involvement to help reduce the cost on hard-working Australians.
IMPROVED PASSENGER AND FREIGHT RAIL
The Commonwealth will provide significant investment in rail infrastructure to ensure people can move around our city centres more efficiently and better connect our cities and suburbs with regional areas. In this Budget, $7.9 billion will be allocated towards rail projects across the nation including:
A commitment of up to $5 billion for a future Melbourne Airport Rail Link – the single biggest infrastructure commitment in the Budget;
$1.1 billion to develop further stages of METRONET in Perth;
$475 million to construct a new rail line to Monash Precinct in Melbourne;
$400 million to duplicate a section of the Port Botany Rail Line and construct the Cabramatta passing loop;
$390 million to upgrade the Beerburrum to Nambour line in Queensland;
$225 million to electrify the Frankston to Baxter line in Melbourne;
$220 million to complete the electrification of the Gawler line in Adelaide;
$50 million towards a business case for the Western Sydney Airport North-South Rail Link which will be jointly funded with New South Wales as part of the landmark Western Sydney City Deal;
$50 million to plan and deliver further upgrades to the Geelong Rail Line.
URBAN CONGESTION FUND
The Government is continuing our ongoing commitment to bust congestion not only through our investments in major urban projects in the pipeline but also through a targeted $1 billion Urban Congestion Fund.
Congestion cost the national economy more than $16 billion in 2015 and commuters are sick of being stuck in traffic rather than spending time with their families. The Urban Congestion Fund will focus on alleviating this burden by investing in projects in urban areas that address pinch points and last-mile access to ports, airports and freight hubs.
ROADS OF STRATEGIC IMPORTANCE INITIATIVE
This Budget includes $3.5 billion to establish the Roads of Strategic Importance initiative which will upgrade key freight corridors in regional Australia and increase productivity by connecting our major agricultural and resource areas with our cities and ports. The Initiative will also benefit urban areas where the primary focus will be last-mile access to ports, markets, airports and intermodal facilities. Upgrades to these roads will increase safety and provide broader benefits to regional Australia by supporting the tourism industry.
A portion of the funding from this Initiative will support a number of immediate priorities including:
An additional $1.5 billion to continue our commitment to Northern Australia to deliver better access for industry and communities;
$400 million to upgrade regional highways in Tasmania, including the Bass Highway, to improve safety and freight efficiency;
$220 million to deliver a bypass of Bindoon on the Great Northern Highway in Western Australia; and
$100 million in additional funding for the Barton Highway corridor to improve access from regional New South Wales to the Australian Capital Territory.
PLANNING FOR THE FUTURE THROUGH A MAJOR PROJECT BUSINESS CASE FUND
The Pipeline lays out a clear plan for Commonwealth-funded construction over the next 10 years but it is also essential we continue to plan for the next phase of Government investment.
For this reason, $250 million will be allocated to a Major Project Business Case Fund to enable the Commonwealth to work in partnership with State and Territory Governments to develop business cases for major projects.
The first business cases funded will include $15 million to support planning for a passenger rail service between Toowoomba and Brisbane and $10 million for EastLink WA (Orange Route).
SAFER ROADS FOR AUSTRALIANS
Accidents on our roads cost Australians about $30 billion a year, but this figure pales in comparison to the suffering of families who lose loved ones.
The Australian Government is continuing to fund the successful Black Spot Program with $744.5 million from 2013–14 to 2021–22 to deliver safety improvements, such as safety barriers and street lighting to sections of dangerous road which have a crash history. The Black Spot Program is one of the most effective road safety measures. On average Black Spot projects reduce the number of crashes causing death and injury by 30 per cent.
The Roads to Recovery Program will also be maintained with $4.8 billion from 2013-14 to 2021-22 for the construction, repair and upgrade of local roads.
INVESTING IN REGIONAL AUSTRALIA
This Budget continues a commitment to build a strong regional Australia with extensions to community grants programs to invest directly in economic and social infrastructure which creates jobs and builds stronger regional communities.
Following the success of the first round of the Building Better Regions Fund, which is delivering more than 250 projects across regional Australia and creating about 26,000 jobs, a further $200 million has been allocated to deliver a third round of the program.
Local knowledge is critical to successful community projects which is why the Stronger Communities Programme will be extended for a fourth round through a commitment of an additional $22.5 million. This program provides grants of between $2,500 and $20,000 to community organisations and Local Governments for capital projects, such as aged care facilities and community halls.
The commitment to practical and common sense decentralisation initiatives will continue to boost economic growth and provide more opportunities for secure, high-paying jobs outside the traditional public-service strongholds of Canberra, Melbourne and Sydney.
Regional Australia has already directly benefited from this agenda with the successful relocation of the Australian Pesticides and Veterinary Medicines Authority to Armidale in New South Wales and Rural Industries Research and Development Corporation (now Agrifutures) to Wagga Wagga in New South Wales, and with the announcement the Regional Investment Corporation will be based in Orange, New South Wales.
To build on this success, jobs from six Government entities will be relocated, including positions from the following:
The Office of the Registrar of Indigenous Corporations moving from Canberra to Darwin;
Department of Prime Minister and Cabinet Indigenous Affairs Group Regional Network moving from Melbourne to Shepparton in Victoria and from the Sydney CBD to Parramatta in the city’s west;
The Unique Student Identifier Registrar moving from Canberra to Adelaide;
The Office of the National Rural Health Commissioner to be established in Adelaide;
Department of Infrastructure, Regional Development and Cities Indian Ocean Territories from Canberra to Perth; and
Department of Infrastructure, Regional Development and Cities Inland Rail Unit from Canberra to Toowoomba in Queensland, Dubbo in New South Wales and Wodonga in Victoria.
The Government’s commitment to a decentralisation agenda is unwavering. In addition to the above, further significant announcements in relation to decentralisation will be made over the coming months.
REMOTE AIRSTRIP UPGRADE PROGRAM EXTENDED
The Government remains committed to delivering better access and safety upgrades to remote airstrips and will extend the Remote Airstrip Upgrade program by providing $28.3 million from 2018-19 to 2021-22.
Remote airstrip upgrades ensure continued access to essential, potentially lifesaving, health care as well as fresh food, mail services and access to employment and education opportunities.
This investment will boost local economies, support local needs and create more local jobs.
Competitive grants funding rounds will be conducted with applications sought from local airstrip owners, such as local councils, cattle stations and indigenous communities.
FINANCIAL ASSISTANCE GRANTS
Local councils will benefit from an early payment of 50 per cent of the 2018-19 Financial Assistance Grant program.
This cash injection of more than $1.2 billion will give councils the opportunity to start work immediately on new projects and to benefit from additional interest on cash in the bank.
PROJECT HIGHLIGHTS BY STATE AND TERRITORY
Roads of Strategic Importance (ROSI) initiative: $3.5 billion, including $2.2 billion to be provided to specific regions or corridors, as detailed below.
Urban Congestion Fund: $1 billion.
Major Project Business Case Fund: $250 million.
New South Wales
Coffs Harbour Bypass: $971 million.
Nowra Bridge construction: $155 million.
Port Botany Rail Line Duplication: $400 million.
Western Sydney North-South rail: $50 million to joint fund a business case with New South Wales Government.
Barton Highway corridor: $100 million for the continued upgrade of the Highway, which is an important link between regional New South Wales and the Australian Capital Territory.
Melbourne Airport Rail Link: up to $5 billion.
North East Link: $1.75 billion.
Monash Rail: $475 million.
Frankston to Baxter Rail Link Electrification Upgrade: $225 million.
Victorian Congestion Package: $140 million.
Continued investment in regional rail (Geelong Line): $50 million.
Completion of the duplication of the Princes Highway East (Traralgon to Sale): $132 million.
The Government also remains committed to the East West Link and our offer of $3 billion stands. We are ready to deliver the project should any Victorian Government decide to proceed.
Bruce Highway: $3.3 billion for continued upgrades to the Bruce Highway:
o $880 million Pine River to Caloundra corridor upgrade.
o $800 million for the Cooroy to Curra – Section D.
o $200 million for additional safety works.
M1 Pacific Motorway: $1 billion towards upgrades between Varsity Lakes and Tugun, and between Eight Mile Plains and Daisy Hill.
Beerburrum to Nambour Rail Upgrade: $390 million.
Brisbane Metro: $300 million.
Cunningham Highway (Amberley Interchange): $170 million.
Toowoomba to Brisbane Passenger Rail Business Case: $15 million to support planning.
Queensland will also receive a share of the $1.5 billion ROSI initiative – Northern Australia Package, and a share of the $160 million commitment to the Outback Way, both to be allocated across the three northern jurisdictions.
METRONET: An additional $1.1 billion, taking the total Australian Government funding to $2.3 billion, including new projects announced in the Budget:
o $500 million for Morley-Ellenbrook Line
o $241.0 million for Byford Extension
o $83.0 million for the Midland Station project
o $2 million for Lakelands business case
o $226.0 million for further projects to be agreed.
Road Projects: $1.5 billion:
o Bunbury Outer Ring Road (Stages 2 and 3): $560 million
o $252.5 million for Tonkin Highway Stage 3 Extension
o $145 million for Tonkin Highway Gap
o $183 million for Tonkin Highway interchanges
o $107.5 million for Mitchell Freeway Extension – Hester Avenue to Romeo Road
o $46.5 million for Leach Highway (Welshpool Road interchange)
o $144 million for Roe Highway/Great Eastern Highway Bypass and Abernethy Road/Great Eastern Highway Bypass Interchanges)
o $65 million for Stephenson Avenue Extension.
Bindoon Bypass – Great Northern Highway: $220 million though the ROSI initiative.
EastLink WA (Orange Route) Business Case – $10 million.
Western Australia will also receive a share of the $1.5 billion ROSI initiative – Northern Australia Package, and a share of the $160 million commitment to the Outback Way, both to be allocated across the three northern jurisdictions.
The Government also remains committed to the Perth Freight Link and our offer of $1.2 billion stands. We are ready to deliver the project should any Western Australian Government decide to proceed.
North South Corridor Future Priorities:
o North-South Corridor – Regency Road to Pym Street: $177 million.
o Future Priorities: $1.21 billion.
Joy Baluch Bridge: $160 million.
Gawler Rail Line Electrification: $220 million.
Bridgewater Bridge Replacement: $461 million.
Freight Rail Revitalisation: an additional $59.8 million to be provided from 2019-20.
Tasmania will also receive dedicated funding of $400 million from the ROSI initiative for a Tasmanian Roads Package, focusing on the Bass Highway.
Australian Capital Territory
Monaro Highway Upgrade: $100 million.
ACT will also benefit from the increased connectivity with NSW generated through the ROSI initiative to upgrade the Barton Highway.
Central Arnhem Road Upgrade: $180 million.
Buntine Highway Upgrade: $100 million.
The Northern Territory will also receive a share of the $1.5 billion ROSI initiative – Northern Australia Package, and a share of the $160 million commitment to the Outback Way, both to be allocated across the three northern jurisdictions.
ROSI initiative – Northern Australia Package: $1.5 billion to be shared across Queensland, the Northern Territory and Western Australia.
Outback Way: $160 million, to be allocated across Queensland, Northern Territory and Western Australia.
Further detail is available at http://minister.infrastructure.gov.au/mccormack/releases/2018/may/budget-infra_01-2018.aspx#attach.
Mr McCormack – Dom Hopkinson 0409 421 209
Dr McVeigh – Clare Siddins 0427 200 674
Mr Fletcher – Belinda Merhab 0428 458 745
Mr Pitt – Matt Dunstan 0411 535 072