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Infrastructure Focused Investment in the 2024-25 Federal Budget

May 20, 2024

Labor has delivered another federal budget with the focus firmly remaining on investment in the infrastructure and construction sectors, continuing recent trends.

At a high level, the Federal Government has committed to providing in excess of $15.3 billion in funding to support state infrastructure projects, which underpins the government’s 10-year $120 billion infrastructure pipeline.

Which State Came Out on Top

Queensland is set to receive the largest long-term investment, with total allocations of $21.6 billion over the ten-year period. Queensland is closely followed by New South Wales, and then Victoria.

A full breakdown of the budget based on state funding allocations are as follows:

  1. Queensland – $21.6 billion;
  2. New South Wales – $20.8 billion;
  3. Victoria – $19.2 billion;
  4. South Australia – $9.7 billion;
  5. Western Australia – $8.9 billion;
  6. Northern Territory – $2.8 billion;
  7. Tasmania – $2.2 billion; and
  8. Australian Capital Territory – $808.6 million.

Rail and Road Focus

The Federal Government has again emphasised its ongoing commitment to invest in the future of the Australian rail and road networks. Notably, within the Federal Government’s National Partnership payment, there are allocations of $3.6 billion to rail projects and $8.2 billion to road projects. This is further supplemented by commitments to state infrastructure services including:

  1. Roads to Recovery – $649 million;
  2. Western Sydney Infrastructure Plan – $276 million;
  3. Safer Local Roads and Infrastructure Programs – $200 million;
  4. Black Spot Program – $131 million;
  5. Major Projects Business Case Fund – $83 million; and
  6. Developing Northern Australia: Northern Australia Roads – $68 million.

Each of the above-mentioned programs are set to deliver long-term tangible benefits to everyday Australians and support the continued growth of the Australian construction and infrastructure sectors.

Project Investment Focus

Project focused investments can largely be broken down into two major categories, those new projects added to the Infrastructure Investment Program and increased funding to existing Infrastructure Investment Program projects.

New Projects

New projects will be funded through a $4.1 billion commitment over 7 years (from 2024-2025), with 65 new priority projects being delivered under the Infrastructure Investment Program. These projects include:

  1. Mamre Road Stage 2 Upgrade (Sydney, New South Wales) – $500 million;
  2. Elizabeth Drive – Priority Sections Upgrade (Sydney, New South Wales) – $400 million;
  3. Zero Emission Buses Tranche 1 Infrastructure – Macquarie Park Depot (Macquarie Park, New South Wales) – $115 million;
  4. METRONET High-Capacity Signalling Program – Automatic Train Control – Stage 1 (Perth, Western Australia) – $300 million;
  5. Regional Road Safety Program – State Roads (Western Australia) – $54 million;
  6. Great Northern Highway – Fitzroy to Gogo (Kimberley Resilience Program) (Fitzroy Crossing, Western Australia) – $53.9 million;
  7. Port Keats Road – Wadeye to Palumpa (Nganmarriyanga) (Northern Territory) – $72 million;
  8. Berrimah Road Duplication – Stuart Highway to Tiger Brennan Drive (Norther Territory) – $64 million;
  9. Warrego Highway – Mt Crosby Road Interchange Upgrade (Ipswich, Queensland) – $134.5 million;
  10. Warrego Highway – Bremer River Bridge (Westbound) Strengthening (Karalee, Queensland) – $42.5 million;
  11. Lyell Highway – Granton to New Norfolk (Hobart, Tasmania) – $80 million;
  12. Mount Barker and Verdun Interchange Upgrades (Adelaide, South Australia) – $120 million;
  13. Canberra Light Rail – Stage 2B Planning (Canberra, Australian Capital Territory) – $50 million; and
  14. Bridgewater Road and Portland Ring Road, Portland, intersection upgrade (Henty Highway, Victoria) – $12 million.

Existing Infrastructure Investment Program Projects

The Federal Government has also committed an additional $10.1 billion over 11 years (from 2023-2024) to existing projects, including:

  1. North East Link (Melbourne, Victoria) – extra $3.25 billion bringing total investment to $5 billion;
  2. Direct Sunshine Coast Rail Line (Sunshine Coast Region, Queensland) – extra $1.15 billion bringing total investment to $2.75 billion;
  3. METRONET projects (Perth, Western Australia) – extra $1.416 billion;
  4. Newell Highway Corridor (New South Wales) – extra $114 million; and
  5. Pacific Highway Corridor (New South Wales) – extra $112 million;
  6. Coomera Connector Stage 1 (Coomera to Nerang) (Coomera, Queensland) – extra $431.7 million;
  7. Beerburrum to Nambour Rail Upgrade (Sunshine Coast Region, Queensland) – extra $226.7 million;
  8. South Eastern Freeway Upgrade – essential repair and safety works to the Heysen Tunnels and managed motorway technology on the South Eastern Freeway between Glen Osmond and Crafers (South Australia) – extra $100 million;
  9. Mornington Roundabout Upgrade (Tasmania) – extra $50 million; and
  10. William Hovell Drive Duplication (Australian Capital Territory) – extra $27.1 million.

Lamont Project & Construction Lawyers

We have the industry knowledge and experience to assist both Principals and Contractors in all major infrastructure projects. If you would like to discuss any of the matters raised in the above article as it relates to your specific circumstances, please contact Lamont Project & Construction Lawyers.

The content of this article is for information purposes only; it does not discuss every important topic or matter of law, and it is not to be relied upon as legal advice. Specialist advice should be sought regarding your specific circumstances.

Contact: Peter Lamont or Ryan Bryett

Email: [email protected] or [email protected]

Phone: (07) 3248 8500

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