Building our Future: Strengthening Australia through critical and innovative infrastructure investment

The 2016-17 Budget provides for ongoing investment in critical infrastructure and regional development to reduce congestion, improve safety and better connect Australian products to domestic and international markets. 

The Australian Government is building our future by delivering over $50 billion for the period 2013-14 to 2019-20 onwards, in critical road and rail infrastructure in an integrated investment plan that creates value and backs economic growth for Australians in our cities and regions. 

Infrastructure is a key part of the Government’s plan to improve our economy’s productive capacity. Our investment in infrastructure supports more liveable and productive communities through well planned, safer and more efficient transport networks. 

Our commitments in this budget are targeted at accelerating planning and investment in major city transformational projects; further investment in critical regional projects; building the Inland Rail project and preparatory works for a Western Sydney Airport including a concept design for rail access to the airport site. 

A renewed national focus on Australian cities, metropolitan and regional, is a key element of the Turnbull Government Smart Cities Plan to build a more prosperous and innovative nation. As part of this Plan the Australian Government is investing more than $3.4 billion in urban rail projects across the country. 

Building our future through critical infrastructure investment 

The 2016 Budget includes more than $33 billion over the forward estimates, to deliver the critical infrastructure that Australia needs for the future that is generating tens of thousands of jobs, easing congestion in our cities, increasing the capacity of our freight routes and improving safety for all road users. In this Budget, the Government has also made further commitments to the Ipswich Motorway and Perth Freight Link, as well as more funding for preparatory work for a Western Sydney Airport and to develop a rail access concept design. 

Through the Roads to Recovery Programme, the Government continues its commitment to the safety of local roads, delivering an additional $50 million per year from 2019–20, increasing the overall annual commitment to $400 million to support the construction and maintenance of local roads. 

Local and state roads will benefit from the continuation of the Black Spot Programme with the Government committing $60 million per year from 2019–20 to fund safety upgrades such as roundabouts, crash barriers and street lights at road sites where crashes are occurring. 

The Heavy Vehicle Safety and Productivity Programme has contributed to a safer operating environment for all road users through investment in the quality of the nation’s road infrastructure, with the Government committing $40 million per year from 2019–20 to fund infrastructure projects such as rest stops, parking bays, upgrading the capacity of roads, and applying technology aimed at improving productivity, to further improve safety and productivity of heavy vehicle operations across Australia. 

The Government is already helping local communities upgrade and repair over 244 bridges around the nation under the Bridges Renewal Programme, with the Government committing $60 million per year from 2019–20 to continue to fund bridge upgrades to enhance access for local communities and facilitate higher productivity vehicle access. 

Complementing these safety initiatives, the Government has approved a $4 million extension to Keys2drive, to keep the program in business providing around 80,000 to 90,000 free lessons to learners over the next year. 

A $1.5 billion Victorian Infrastructure Package will tackle congestion and improve the liveability of the State, particularly in Melbourne—which continues to be Australia’s fastest growing city. The package includes the following funding, to be provided conditional on the Victorian Government matching dollar for dollar: 

•  $500 million to upgrade the Monash Freeway; 
•  $350 million to complete the upgrade of the M80 Ring Road; 
•  $220 million to upgrade the Murray Basin Freight Rail network; 
•  $345 million towards a Rural and Regional Roads Package; and 
•  $75 million towards an Urban Congestion Package. 

Inland Rail 

The Australian Government will build the Inland Rail project through the Australian Rail Track Corporation and private sector partnerships. The Government will retain the ARTC in Australian Government ownership to enable the project to access funds at the lowest cost to the taxpayer, testing the market to optimise private sector involvement in the delivery and financing of Inland Rail. The Australian Government is providing the ARTC with $594 million in additional equity funding to acquire the necessary land for the Inland Rail corridor and to continue pre-construction works and due diligence activities. 

Western Sydney Airport project 

The Australian Government has committed $115 million to fund preparation work, including $26 million to develop a concept design for rail access that will accelerate benefits to Western Sydney. $89 million will also be allocated to undertake critical preparatory activities for the airport site. The Western Sydney Airport Environmental Impact Statement and Airport Plan are both expected to be finalised in the coming months, following the review of nearly 5,000 public submissions and it is anticipated that the proposed Western Sydney Airport will commence operations in the mid-2020s. The airport would be expected to handle around 10 million passengers around five years after it opens for business. By that time the airport would provide nearly 9,000 direct jobs, and this would grow to more than 60,000 direct jobs by the early 2060s. 

Support for communities 

The Australian Government is continuing the Financial Assistance Grant programme which will provide an estimated $9.7 billion to local government from 2016–17 to 2019–20 — approximately $2.4 billion per year. These funds will be untied, allowing councils to prioritise funding based on community need—whether to infrastructure, health, recreation, environment or employment projects. $2.3 billion will be allocated in 2016–17. 

Project highlights by State and Territory 

New South Wales 

•  Western Sydney Infrastructure Plan: $2.9 billion with $524.4 million to be provided in 2016–17. 
•  Pacific Highway duplication: $5.6 billion with $1.37 billion to be provided in 2016–17. 
•  WestConnex: $1.5 billion plus a concessional loan of $2.0 billion to accelerate the New M5 section with $300 million to be provided in 2016–17. 
•  Northern Sydney Freight Corridor: $691.6 million with $25 million to be provided in 2016–17. 
•  NorthConnex: $412.3 million with $96 million to be provided in 2016–17. 
•  M1 Productivity Package: $196 million with $110 million to be provided in 2016–17. 
• Through the Asset Recycling Initiative the Commonwealth is also providing a total of $2.19 billion to New South Wales towards: 
•  Sydney Metro: $1.7 billion 
•  Sydney’s Rail Future: $98.4 million 
•  Parramatta Light Rail: $78.3 million 
•  Pinch Points and Clearways: $52.2 million 
•  Smart Motorways: $60 million 
•  Gateway to the South: $39.2 million 
•  Regional Road Freight Corridor - New England Highway: $30.3 million 
•  Regional Road Freight Corridor - Princes Highway: $52.5 million 
•  Regional Road Freight Corridor - Mitchell Highway: $5.7 million 
•  Regional Road Freight Corridor - Newell Highway: $78.8 million 

Victoria 

•  Monash Freeway: $500 million 
•  M80 Ring Road: $500 million with $56.8 million to be provided in 2016-17. 
•  Murray Basin Freight Rail: $220 million 
•  Great Ocean Road: $25 million with $4.9 million to be provided in 2016–17. 
•  Western Highway – Ballarat to Stawell Duplication: $501.3 million with $3.43 million to be provided in 2016–17 to duplicate a further 12.4 kilometres from Buangor to Ararat. 
•  Princes Highway East – Traralgon to Sale Duplication: $210 million with $23.9 million to be provided in 2016–17 to duplicate a further 3.5 kilometres west of Sale. 
•  Tullamarine Freeway Widening (Section 1): $200 million with $61.7 million to be provided in 2016–17 to continue work on the 5.5 kilometres from Melrose Drive to the Melbourne Airport. 
•  Princes Highway West – Winchelsea to Colac Duplication: $181.7 million with $40.3 million to be provided in 2016–17 to duplicate a further 14.5 kilometres from Armytage to Warncoort. 
•  St Albans Rail Grade Separation: $151 million with $60.9 million to be provided in 2016–17 to complete the removal of the level crossing and construction of the new rail station and bus interchange. 

Through the Asset Recycling Initiative the Commonwealth is also providing a total of $877.5 million to Victoria towards: 

•  Melbourne Metro: $857.2 million 
•  Murray Basin Rail: $20.2 million 

The Australian Government remains committed to the East West Link and our offer of $3 billion still stands. We are ready to deliver the project should any Victorian Government decide to proceed. The funding allocated for the Monash Freeway, M80 Ring Road, Murray Basin Freight Rail, Rural and Regional Roads Package and Urban Congestion Package is provided by a reallocation of the $1.5 billion payment provided for the East West Link. 

Queensland 

 Ipswich Motorway: $200 million with $50 million to be provided in 2016–17 

 Bruce Highway: up to $6.7 billion with $558.1 million to be provided in 2016–17. 

 Gateway Upgrade North: up to $914.2 million with $200 million to be provided in 2016–17. 

 Toowoomba Second Range Crossing: Up to $1.137 billion with $493.4 million to be provided in 2016–17. 

 Warrego Highway – Toowoomba to Miles: $508 million with $41.3 million to be provided in 2016–17. 

 Cape York Region Package: $208.4 million with $48.8 million to be provided in 2016–17. 

 Moreton Bay Rail Link: $518.4 million with the final $100 million to be provided in 2016–17. 

 Gold Coast Light Rail Stage 2: $95 million with $47.5 million to be provided in 2016–17 

Western Australia 

 Perth Freight Link: $1.2 billion with $207.7 million to be provided in 2016–17. 

 NorthLink WA - Swan Valley Bypass: $644.1 million with $118.3 million in 2016–17. 

 NorthLink WA – Tonkin Highway Grade Separations: $225.0 million with $87.3 million to be provided in 2016–17. 

 Great Northern Highway (Muchea to Wubin): $307.8 million with $78.2 million to be provided in 2016–17. 

 North West Coastal Highway (Minilya to Barradale): $100.7 million with $23.1 million to be provided in 2016–17. 

The Australian Government will provide an additional $490 million towards the construction of the $2 billion Forrestfield Airport Link project, implementing the Government’s commitment to maintain Western Australia’s GST relativity at its 2014-15 levels. 

South Australia 

 North-South Corridor – Darlington interchange: $496 million with $159.7 million to be provided in 2016–17. 

 North-South Corridor – Torrens Road to River Torrens: $448 million with $77.1 million in 2016–17. 

 North-South Corridor – Northern Connector: $788 million with $84 million to be provided in 2016–17. 

 Anangu Pitjantjatjara Yankunytjatjara (APY) Lands: $85 million with $27 million to be provided in 2016–17. 

Tasmania 

 Midland Highway: $400 million with $70 million to be provided in 2016–17. This will enable the completion of two projects and allow three further projects to commence construction in 2016–17. 

 Freight Rail Revitalisation: $59.8 million with $20.4 million to be provided in 2016–17. 

 Brooker Highway (Elwick-Goodwood to Howard Road): $25.6 million with $7 million to be provided in 2016–17. This will allow the project to be completed by mid-2017. 

Australian Capital Territory 

 ACT Travel Time Information: $0.3 million with $0.25 million to be provided in 2016–17 enabling the project to be completed in late 2016. 

Northern Territory 

 Northern Territory Roads Package: $77 million with $23 million to be provided in 2016–17. 

 Regional Roads Productivity Package: $90 million with $20.3 million to be provided in 2016–17. 

Through the Asset Recycling Initiative the Commonwealth is also providing a total of $40.4 million to the Northern Territory towards: 

 Ship Lift and Marine Industries Project: $13 million 

 T-Gen: $6.5 million 

 Flood Mitigation – Darwin: $3.3 million 

 Flood Mitigation – Katherine: $2.3 million 

 Roper Highway Upgrade: $2.1 million 

 Tanami Road Upgrade: $1.3 million 

 Litchfield Park Road: $3.7 million 

 Larapinta Drive: $3.3 million 

 Sadadeen Road: $1 million 

 Kambolgie Creek: $0.4 million 

 Tiwi Island Roads: $3.5 million 

Northern Australia 

 Northern Australia Roads Package: $600 million with $100 million to be provided in 2016–17. 

 Beef Roads Package: $100 million with $35 million to be provided in 2016–17 

 $5 billion concessional loan facility for development of Northern Australia 

Attachment A details projects by state and territory. They are availabl