The 2017–18 Budget delivers a transformational next step in the Coalition Government’s record investment in infrastructure – improving connectivity, productivity, and liveability in our cities and regions.
These investments will deliver an important economic boost, creating tens of thousands of new jobs during construction. On completion these projects will lift national productivity and drive economic growth.
Infrastructure is a key part of the Turnbull-Joyce Government’s plan to build a stronger and more prosperous Australia. Our investments will unlock the potential of our cities and regions, by moving people and freight around the country more quickly, more safely, and more efficiently.
We will increase the efficiency and safety of our land transport infrastructure while strengthening the Australian economy through better connections for Australian businesses and industries transporting products to domestic and international markets.
The Australian Government is delivering a commitment of $75 billion in infrastructure funding and financing from 2017-18 to 2026-27 for critical airport, road, and rail infrastructure projects.
A centrepiece of the 2017-18 Budget delivers a once in a generation, $20 billion commitment to upgrade Australia’s passenger and freight rail, which are critical in connecting people to jobs, and services and goods to markets.
TRANSFORMATIONAL $20bn NATIONAL RAIL INVESTMENT
The Australian Government will invest $10 billion over the next decade for the National Rail Program, which will fund transformational rail projects so people can move around our cities and regions more efficiently and better connect our cities, suburbs and surrounding regional areas.
This $10 billion rail investment will reduce the burden on Australian roads, provide more reliable transport networks, and will support our efforts to decentralise our economy and grow regional Australia.
An additional $30 million will also be provided to fund the development of a business case for the Melbourne Airport Rail Link. We will work with the Victorian Government to access potential further funding for this project from the $10 billion National Rail Program.
The Government will connect regional centres to our capital cities, with faster, more reliable rail services, with regional Australia getting its fair share of the new $10 billion National Rail Program.
The Coalition Government is also providing an additional $8.4 billion in equity to deliver the Inland Rail project. Inland Rail will provide a high-capacity freight link between Melbourne and Brisbane, which will strengthen our freight connections ensuring we are able to take advantage of emerging domestic and global markets. This project will take thousands of trucks off our roads.
The Coalition Government will deliver Inland Rail through the Australian Rail Track Corporation (ARTC) using a combination of Government equity and a Public Private Partnership for the Toowoomba to Kagaru tunnel section.
Upgrading Victorian Rail Infrastructure
The 2017-18 Budget includes over $1 billion for new and upgraded infrastructure in Victoria, utilising funding previously allocated to the Asset Recycling Initiative, despite the Victorian Government failing to meet the agreed requirements of the National Partnership Agreement on Asset Recycling.
Victoria will receive $500 million in the 2017-18 Budget to build a better regional rail network with improvements to the North-East Line, the Gippsland Line and the Geelong Line, as well as a study into improving the Shepparton Line. Victoria will also receive an additional $20.2 million for Murray Basin Rail, taking our total commitment to this project to $240 million. In addition, the Government will provide $30 million towards the development of a business case for the Melbourne Airport Rail Link.
A further $460 million is available for Victorian infrastructure projects, which will be negotiated between the Australian and Victorian governments.
Strong gains continue to be made on the transformative Bruce Highway Upgrade Program with $844 million in program savings enabling new projects to be agreed with the Queensland government. The Commonwealth will accelerate construction on the Pine River to Caloundra, and Deception Bay Interchange sections as well as additional safety works, including the upgrade of the Wide Bay Highway intersection.
The impact of completed works along the Highway with recent flood resilience measures, particularly across the Yeppen Floodplain south of Rockhampton, ensured areas of Queensland were not isolated during the recent floods, and essential supplies and services were able to be delivered.
Western Australia Infrastructure
The Coalition Government is investing $1.6 billion towards a $2.3 billion road and rail infrastructure package in Western Australia.
$1.2 billion, including up to $792.0million of Federal Government funding, will be allocated towards the METRONET and related projects, subject to a positive assessment by Infrastructure Australia.
Of the $760 million committed for road infrastructure, the Armadale Road/North Lake Road (Kwinana Freeway) project will receive $189.6 million, and the Leach Highway (Carrington Street to Stirling Highway) project will receive $73.6 million.
The Australian Government will also provide $44.2 million towards regional road projects to improve regional road safety across Western Australia.
Making our Roads Safer
The Government has provided an extra $16 million to extend the Keys2drive program, providing around 200,000 free lessons to learner drivers. The Government will be conducting an inquiry into the National Road Safety Strategy.
The Australian Government is continuing to fund the Black Spot Programme with $684.5 million from 2013-14 to 2020-21 so it can continue to deliver safety improvements, such as safety barriers and street lighting to sections of dangerous road that have a crash history.
Commitment to the Roads to Recovery Programme has been maintained with $4.4 billion from 2013-14 to 2020-21 for the construction, repair and upgrade of local roads.
Western Sydney Airport
The Turnbull-Joyce Government is committed to the delivery of Western Sydney Airport at Badgerys Creek, to be operational by 2026. The airport is vital to deliver new aviation capacity for Sydney and the nation; and will bring better access to air travel for two million people who will be closer to Western Sydney Airport than Kingsford Smith Airport. This is about building more than an airport; our decision will transform the economy of Western Sydney.
The Coalition Government will establish a new Government-owned company charged with ensuring that the airport is operational by 2026. The company, to be established in the 2017-18 Financial Year, will have board and management with strong private sector expertise, and will issue tenders for early works before the end of 2017. The Government will commit up to $5.3 billion of equity to this company, to be invested over 10 years in line with the construction schedule. The new airport is a significant investment for Western Sydney and will deliver net long-term benefits to the Australian economy, returning $1.80 for every dollar invested.
The Government will provide additional funding of $12 million over four years to Infrastructure Australia to support its future work program.
Australian Transport Safety Bureau (ATSB)
The Government is boosting resources to the ATSB, providing an addition $12 million over five years, to continue to improve aviation safety and education.
Project highlights by State and Territory
New South Wales
- Western Sydney Infrastructure Plan: $2.9 billion with $725 million to be provided in 2017–18.
- Pacific Highway duplication: $5.6 billion with $710.1 million to be provided in 2017–18.
- WestConnex: $1.5 billion plus a concessional loan of $2.0 billion to enable the New M5 section to be constructed in parallel with the M4 extension, with a further $720 million of the loan to be made available in 2017-18.
- Port Botany Rail Line Upgrade (Stage 3): $75 million with $20 million to be provided in 2017-18.
- NorthConnex: $412.3 million with $50 million to be provided in 2017–18.
- M1 Productivity Package: $195.8 million with $60 million to be provided in 2017?18.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: $39.1 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: $5.6 million
- Regional Road Freight Corridor – Newell Highway: $78.8 millionIn the 2016 Federal election, the Australian Government committed $306.8 million towards 40 projects across the state such as the Barton Highway Upgrade Package ($50 million), Appin Road ($50 million) and the Mulgoa Road upgrade ($80 million).
- The Budget provides additional funding for Victoria, with more than $1 billion for new and upgraded infrastructure, utilising funding previously allocated to the Asset Recycling Initiative. This includes:$100.0 million – Geelong Rail Line Upgrade
- $100.0 million – North East Rail Line Upgrade
- $195.0 million – Gippsland Rail Line Upgrades
- $95.0 million – Avon River Bridge Upgrade
- $10.0 million – Shepparton Line Planning Study
- $30.0 million – development of the business case for the Melbourne Airport Rail Link
- $20.2 million – additional funding for upgrades on the Murray Basin Rail line.
- Tullamarine Freeway Widening (Section 1): $200 million with $112 million to be provided in 2017–18 to continue work on the 5.5 kilometres from Melrose Drive to the Melbourne Airport.
- Great Ocean Road: $25 million with $3 million to be provided in 2017–18.
- Western Highway – Ballarat to Stawell Duplication: $499.4 million with $77 million to be provided in 2017–18 to duplicate a further 12.4 kilometres from Buangor to Ararat.
- Princes Highway East – Traralgon to Sale Duplication: $210 million with $31 million to be provided in 2017–18 to continue work west of Sale.
- Princes Highway West – Winchelsea to Colac Duplication: $181.7 million with $46 million to be provided in 2017–18 to duplicate a further 9 kilometres from Warncoort to Colac East.
In late 2016, the Australian and Victorian governments agreed to the $3 billion Victorian Infrastructure Package, utilising the $1.5 billion in Australian Government funding previously paid to the now-cancelled East West Link. Under the package, the Australian Government is contributing to the following key projects:
- Monash Freeway Upgrade: $500 million
- Completion of the M80 Ring Road Upgrade: $350 million, taking the total Australian Government funding to $500 million.
- Murray Basin Rail: $220 million, taking the total Australian Government funding to $240 million.
- Rural and Regional Roads Package: $345 million, including an additional $25 million to continue the upgrade of the Great Ocean Road
- Urban Congestion Package: $85 million, including construction of the O’Herns Road Interchange.
In the 2016 Federal election, the Australian Government committed $392.1 million towards 35 projects across the state, such as the Echuca-Moama Bridge ($97 million) and the Canterbury Road Upgrade ($20 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.
- Bruce Highway: Australian Government is committing to provide funding of $6.7 billion with $552 million to be provided in 2017-18, including new projects announced in the Budget:
- Bruce Highway- $530 million to accelerate planning and construction works between Pine River and Caloundra;
- Bruce Highway – $11.2 million for the Wide Bay Highway/Bruce Highway intersection upgrade;
- Bruce Highway -$120 million for the Deception Bay Interchange upgrade;
- Bruce Highway – $182.6 million for additional safety works.
- M1 Pacific Motorway – Gateway Merge at Eight Mile Plains: $105.0 million with $34 million to be provided in 2017-18.
- M1 Pacific Motorway – Mudgeeraba to Varsity Lakes: $110.0 million with $20 million to be provided in 2017-18.
- Ipswich Motorway – Rocklea to Darra: $200 million with $78.5 million to be provided in 2017–18.
- Gateway Upgrade North: up to $914.2 million with $267.5 million to be provided in 2017–18.
- Toowoomba Second Range Crossing: Up to $1.137 billion with $248 million to be provided in 2017–18.
- Warrego Highway – Toowoomba to Miles: $508 million with $219 million to be provided in 2017–18.
- Townsville Eastern Access Rail Corridor: $147 million with $38.7 million to be provided in 2017-18.
- Cape York Region Package: $208.4 million with $54.3 million to be provided in 2017–18.
- Gold Coast Light Rail Stage 2: $95 million with $31.6 million to be provided in 2017–18.
- Northern Australia Roads Programme: up to $223.8 million for projects to be delivered in Queensland, with $37.3 million to be provided in 2017-18.
- Northern Australia Beef Roads Programme: up to $56.9 million for projects to be delivered in Queensland, with $26 million to be provided in 2017-18.
In the 2016 Federal election, the Australian Government committed $547.2 million towards 12 projects across the state that including upgrades to the Pacific Motorway totalling at $215 million). In addition, Queensland will also receive a share of the $100 million election commitment to the Outback Way.
The WA Infrastructure Package committed in 2017 Budget includes the following road projects:
- Armadale Road/North Lake Road (Kwinana Freeway) – Constructing bridge and collector roads ($189.6 million)
- Leach Highway (Carrington Street to Stirling Highway) – Upgrade to High Street ($73.6 million)
- Murdoch Activity Centre Access Roads – ($92.5 million)
- Roe Highway (Kalamunda Road) – Constructing Grade Separated Intersection ($68.8 million)
- Reid Highway (Altone Road to West Swan Road ) – Constructing Dual Carriageway ($56 million)
- Wanneroo Road (Ocean Reef Road) – Constructing Grade Separated Intersection (Additional $31.8 million, AG total $51.84 million)
- Wanneroo Road (Joondalup Drive) – Constructing Grade Separated Intersection ($40 million)
- Kwinana Freeway (Russell Road to Roe Highway) – Widening of Northbound Lanes ($39.2 million)
- Kwinana Freeway (Roe Highway to Narrows Bridge) – Implementing Smart Freeways ($37.6 million)
- Mitchell Freeway (Cedric Street to Vincent St) – Widening of Southbound Lanes ($32 million)
- Kwinana Freeway (Manning Road) – Constructing Freeway On-Ramp (Additional $8 million, AG total $28 million)
- Wanneroo Road (Joondalup Drive to Flynn Drive) – Constructing Dual Carriageway ($24.8 million)
- Karel Avenue (Farrington Road to Berrigan Drive) – Constructing Dual Carriageway ($12 million)
- Bunbury Outer Ring Road – Planning Work ($10 million).
In addition, Australian Government funding of $792 million will be allocated towards the METRONET projects, subject to positive assessment of business cases by Infrastructure Australia.
As part of the overall package, the Australian Government will also provide $44.2 million towards
regional road projects to improve regional road safety across Western Australia.
The Government is also providing funding for:
- NorthLink WA – Swan Valley Bypass: $648.4 million (including $623.1 million from 2013-14 to 2020-21) with $200 million in 2017–18.
- NorthLink WA – Tonkin Highway Grade Separations: $185 million with $21.2 million to be provided in 2017–18.
- Great Northern Highway (Muchea to Wubin): $275.8 million with $70.0 million to be provided in 2017–18.
- Mitchell Freeway widening (southbound from Cedric Street to Vincent Street): $32.2 million with $3.2 million to be provided in 2017-18.
- Northern Australia Roads Programme: up to $171.81 million for projects to be delivered in Western Australia, with $56.29 million to be provided in 2017-18.
- Northern Australia Beef Roads Programme: up to $12.51 million for projects to be delivered in Western Australia, with $6.01 million to be provided in 2017-18.Western Australia will also receive a share of the $100 million election commitment to the Outback Way.
- North-South Corridor – Darlington interchange: $496 million with $198.7 million to be provided in 2017–18.
- North-South Corridor – Torrens Road to River Torrens: $400.5 million with $105.0 million in 2017–18.
- North-South Corridor – Northern Connector: $708 million with $233.8 million to be provided in 2017–18.
- Anangu Pitjantjatjara Yankunytjatjara (APY) Lands: $85 million with $23.8 million to be provided in 2017–18.
- Flinderslink: $42.7 million with $36.3 million to be provided in 2017-18.In the 2016 Federal election, the Australian Government committed $56 million towards three projects across the state: Oaklands Crossing, Lobethal B-Double Route and Marion Road Planning projects.
- Midland Highway: $400 million with $96.5 million to be provided in 2017–18. This will enable the completion of two projects and allow three further projects to commence construction in 2017–18, including the Perth Link Roads project that has been brought forward by two years.
- Freight Rail Revitalisation: $59.8 million with $12.8 million to be provided in 2017–18. In the 2016 Federal election, the Australian Government committed $45.3 million towards 14 projects across the state for projects such as the Hobart Airport Roundabout ($24 million) and Highland Lakes Road Upgrade ($5 million).
Australian Capital Territory
In the 2016 Federal election, the Australian Government committed $3 million towards the Monaro Highway Widening and Pialligo Road Duplication planning projects.
Through the Asset Recycling Initiative, the Commonwealth is also providing a total of $67.1 million to the ACT for Capital Metro.
- Northern Territory Roads Package: $77 million with $15.7million to be provided in 2017–18.
- National Highway Upgrade Programme: up to $20 million with $11.4 million to be provided in 2017-18.
- Regional Roads Productivity Package: $90 million with $15.1 million to be provided in 2017–18.
- Northern Australia Roads Programme: up to $192.2 million for projects to be delivered in the Northern Territory, with $94.9 million to be provided in 2017-18.
- Northern Australia Beef Roads Programme: up to $30.0 million for projects to be delivered in the Northern Territory, with $13.0 million to be provided in 2017-18.In the 2016 Federal election, the Australian Government committed $29.5 million towards the Barneson Boulevard and Tiger Brennan Drive Stage 3 project, with $3.7 million to be provided in 2017-18. The Northern Territory will also receive a share of the $100 million election commitment to the Outback Way.
- Northern Australia Roads Programme: $600 million with $188 million to be provided in 2017–18 across Queensland, the Northern Territory and Western Australia.
- Beef Roads Programme: $100 million with $45 million to be provided in 2017–18 across Queensland, the Northern Territory and Western Australia.
- $5 billion concessional loan facility for development of Northern Australia.