The Australian Government is set to pump $17.9 billion into new road and rail infrastructure in 2022/23 as the Morrison Government pins part of its re-election hopes on major infrastructure works.

In the lead-up to the last budget before the 2022 Federal election, Prime Minister Scott Morrison has committed $17.9 billion in new and existing infrastructure commitments for 2022/23.

The move will see the Commonwealth’s ten-year rolling infrastructure pipeline expand from $110 billion to a new record of more than$120 billion.

Commitments for 2022/23 include:

  • $3.1 billion in new commitments to deliver the $3.6 billion Melbourne Intermodal Terminal Package (VIC), including:
    • $1.2 billion for the Beveridge Interstate Freight Terminal in Beveridge, taking the total investment to $1.62 billion;
    • $280 million for Road Connections, including Camerons Lane Interchange, to the Beveridge Interstate Freight Terminal;
    • $740 million for the Western Interstate Freight Terminal in Truganina; and
    • $920 million for the Outer Metropolitan Ring – South Rail connection to the Western Interstate Freight Terminal.
  • $1.6 billion for the Brisbane to the Sunshine Coast (Beerwah-Maroochydore) rail extension(QLD)
  • 121 billion for the Brisbane to the Gold Coast (Kuraby – Beenleigh) faster rail upgrade (QLD)
  • $1 billion for the Sydney to Newcastle – (Tuggerah to Wyong) faster rail upgrade(NSW)
  • $678 million for Outback Way(NT, WA, QLD)
  • $336 million for the Pacific Highway – Wyong Town Centre(NSW)
  • $336 million for the Tasmanian Roads Package – Northern Roads Package – Stage 2 (TAS)
  • $200 million for the Marion Road – Anzac Highway to Cross Road(SA)
  • $145 million for the Thomas Road – Dual Carriageway – South Western Highway to Tonkin Highway and interchange at Tonkin Highway(WA)
  • $140 million for Regional Road Safety upgrades(WA)
  • $132 million for Central Australian Tourism Roads(NT)
  • $120 million for the Adelaide Hills Productivity and Road Safety Package(SA)
  • $46.7 million towards the Athllon Drive Duplication(ACT)

The Budget also includes additional funding for existing projects and Roads of Strategic Importance corridors, including:

  • $2.264 billion for the North South Corridor – Torrens to Darlington(SA)
  • $352 million for the Milton Ulladulla Bypass(NSW)
  • $320 million for the Bunbury Outer Ring Road (Stages 2 and 3) (WA)
  • $200 million for the Tonkin Highway Stage 3 Extension(WA)
  • $45 million for the Ballarat to Ouyen – Future Priorities(VIC)
  • $68.5 million for the Cooktown to Weipa Corridor Upgradebringing the total Australian Government funding to the corridor to $258.5 million (QLD).

Morrison said the investments would help to drive Australia forward.

He said the spending would generate tens of thousands of jobs across the life of the projects.

“A strong economy means a stronger future,” the Prime Minister said.

“Continuing to provide record future funding for road and rail projects is a key part of our economic plan for the long term to keep our economy strong.

“By investing in these projects, we are delivering the infrastructure that the Australian economy needs to grow, to get Australians home sooner and safer, and generate thousands of jobs and new opportunities for small businesses right across the country.”

Industry lobby groups welcomed the announcement but cautioned that reform was needed in order to generate maximum value for money spent.

Australian Constructors Association CEO Jon Davies welcomed the commitment but cautioned that productivity improvements are needed in major civil construction works.

This is particularly the case with a shortfall of 105,000 workers in infrastructure and civil construction expected by the middle of 2023.

In particular, Davies called for the government to adopt the ACA’s recently released Future Australian Infrastructure Rating (FAIR) initiative, through which public sector projects are rated on their performance against a range of areas such as productivity increases and innovation.

This, Davies said, would see the Commonwealth implement conditions on Federal funding which would drive innovation and productivity across states and territories.

“The Australian Constructors Association welcomes the infrastructure commitments announced today,” Davies said.

“To maximise the economic benefit from this investment the Federal Government needs to expedite much needed industry reforms.”

Engineers Australia CEO Dr Bronwyn Evens AM also welcomed the commitment but cautioned that new models for infrastructure planning, funding and delivery are needed to support optimal capital works outcomes.

Evans also pointed to calls in Engineers Australia’s pre-budget submission about the need for procurement to be more inclusive of local and mediums sized Australian businesses and startups and to enable these parties to collaborate with subcontractors and large transactional corporations to help reduce costs and promote innovation.

“Engineers Australia is pleased to see the Commonwealth Government’s announcement for a $17.9 billion boost for infrastructure across Australia,” Evans said.

“Greater investment in infrastructure will continue to support jobs and economic prosperity.

“However, new models for infrastructure planning, funding and delivery are needed to support infrastructure outcomes.”