Federal Budget May 2024-25: Infrastructure

• Canberra’s light rail project: Allocated $50m, aimed at funding the phase of the tramline from Lake Burley Griffin to Woden between 2028 and 2033.

Major projects

• South East Queensland rail: $1.15b to fund the construction of the line from Beerwah to Caloundra. In addition, $226.7m has been allocated to the in Beerburrum to Nambour Rail Upgrade, and $431.7m for the Coomera Connector Stage 1 project.
• Inland Rail Route: $720.0 million will be earmarked for the construction of the Inland Freight Route in Queensland.

Other key investments:

• Bruce Highway: $467m for upgrades
• Road improvements: $134.5 million for the Mt Crosby Road Interchange Upgrade and $42.5 million for Bremer River Bridge (Westbound) Strengthening on the Warrego Highway in Queensland.

Western Sydney Airport and infrastructure: $1.9b for priority road and rail projects, and an additional $100m for zero-emission rapid bas infrastructure. An additional $302.6m over 5 years to enable federal authorities to operate at the airport.

• Remote housing: $2.1b will be provided as part of a joint $4b investment with the Northern Territory Government for housing in remote communities, as part of a 10-year housing agreement.
• Rural roads: $72.0 million for the Port Keats Road – Wadeye to Palumpa (Nganmarriyanga) in the Northern Territory, and $64.0 million for the Berrimah Road Duplication – Stuart Highway to Tiger Brennan Drive in the Northern Territory; $25.0 million for the Carpentaria Highway Upgrade.

• Road improvements: $120.0 million for the Mount Barker and Verdun Interchange Upgrades in South Australia; $100m for the South Eastern Freeway Upgrade.

• Roads package: Tasmania will receive $219m in a roads package funding existing and new projects, including $124m for new highway upgrades and corridor planning, and $95m for existing projects.

• METRONET: An additional $1.4b has been provided for existing METRONET projects.
• High-Capacity Signalling: $300m has been allocated to a new High-Capacity Signalling program.
• Rural road upgrades: $54.0 million for the Regional Road Safety Program – State Roads in Western Australia.

• North East Link: An additional $3.25b has been provided to the project.
• Regional rail: $290.1m has been allocated to the Gippsland Rail Line Upgrade, and $150m to upgrade the Maroona-Portland Rail Line.
• Road improvements: $17.6 million for projects in Victoria, including $12.0 million for the Bridgewater Road and Portland Ring Road intersection upgrade.

The Government will provide additional funding to build more homes for Australians sooner, invest in more housing enabling infrastructure, train more construction workers and support social and affordable housing and homelessness services. Funding includes:

• subject to states and territories signing the new National Agreement on Social Housing and Homelessness:
  • $423.1 million over five years from 2024–25 in additional funding to support the provision of social housing and homelessness services by states and territories under a new National Agreement on Social Housing and Homelessness. The additional funding will increase annual funding under the new agreement to $1.8 billion per year from 2024–25, with over $9.28 billion provided to states and territories over the life of the agreement;
  • $1.0 billion in 2023–24 for states and territories to support enabling infrastructure for new housing through a new Housing Support Program – Priority Works Stream; and
• supporting more community housing providers to access finance through the Affordable Housing Bond Aggregator by increasing the cap on the Government’s guarantee of Housing Australia’s liabilities by $2.5 billion to $10.0 billion, with an associated increase in the line of credit that supports the Affordable Housing Bond Aggregator of $3.0 billion to $4.0 billion.

The Government has additionally committed that it will:

• target the $1.0 billion for social housing under the National Housing Infrastructure Facility in the 2023–24 MYEFO towards crisis and transitional accommodation for women and children fleeing domestic violence, and youth, including redistributing the mix of concessional loans and grants to increase the proportion of grants to $700.0 million; and
• provide $1.9 billion in concessional finance to support community housing providers to deliver social and affordable housing under the Housing Australia Future Fund and the National Housing Accord.

In addition, the Government has committed funding to Northern Territory Homelands and Housing projects. The Government will provide $839.4 million over five years from 2023–24 (and $2.1 billion over ten years from 2024–25) to accelerate housing delivery in remote Northern Territory communities and increase investment in homelands. Funding includes:

• $698.4 million over four years from 2024–25 (and $2.0 billion over ten years from 2024–25) to enter into a 10-year remote housing agreement with the Northern Territory Government to reduce overcrowding in remote Northern Territory communities. The Northern Territory Government has committed to match the Commonwealth’s remote housing investment, bringing the total investment to $4.0 billion;
• $120.0 million over three years from 2024–25 to continue the delivery of urgent repairs and maintenance of existing housing and essential infrastructure through an extension of the Northern Territory Homelands Federation Funding Agreement;
• $20.0 million in 2023–24 to deliver an additional 49 houses under the existing Remote Housing Northern Territory Federation Funding Agreement, in partnership with and jointly funded by the Northern Territory Government, delivering a total of 206 houses under the one-year agreement; and

$1.0 million over two years from 2024–25 to develop a sustainable Community-Controlled Housing Model to improve housing delivery and management in remote Northern Territory communities.

The Government has announced $1.2 billion in strategic investments in priority critical minerals projects.  This comprises:

• $655.0 million under the Critical Minerals Facility; and
• $400.0 million through the Northern Australia Infrastructure Facility. This includes financing to support the Alpha HPA alumina project in Queensland and Arafura Rare Earth’s Nolans Rare Earth project in the Northern Territory.

The Government has allocated $4.1 billion over seven years from 2024–25 for 65 new priority infrastructure projects across Australia under the Infrastructure Investment Program, including:

• $1.9 billion for projects in Western Sydney, including $500.0 million for the Mamre Road Stage 2 Upgrade and $400.0 million for Elizabeth Drive – Priority Sections Upgrade;
• $300.0 million for the METRONET High-Capacity Signalling Program – Automatic Train Control – Stage 1 in Western Australia;
• $72.0 million for the Port Keats Road – Wadeye to Palumpa (Nganmarriyanga) in the Northern Territory;
• $134.5 million for the Mt Crosby Road Interchange Upgrade and $42.5 million for Bremer River Bridge (Westbound) Strengthening on the Warrego Highway in Queensland;
• $115.0 million for Zero Emission Buses Tranche 1 Infrastructure – Macquarie Park Depot in New South Wales;
• $80.0 million for the Lyell Highway – Granton to New Norfolk in Tasmania;
• $64.0 million for the Berrimah Road Duplication – Stuart Highway to Tiger Brennan Drive in the Northern Territory;
• $120.0 million for the Mount Barker and Verdun Interchange Upgrades in South Australia;
• $54.0 million for the Regional Road Safety Program – State Roads in Western Australia;
• $53.6 million for the Great Northern Highway – Brooking Channel Bridge Replacement in Western Australia;
• $50.0 million to plan for Stage 2B of the Canberra Light Rail in the Australian Capital Territory; and
• $17.6 million for projects in Victoria, including $12.0 million for the Bridgewater Road and Portland Ring Road intersection upgrade.

In addition, the Government has allocated funds to other priority projects, including:

• $540.0 million for the Australian Rail Track Corporation to invest in the interstate rail network, including $150.0 million for the Maroona to Portland Line Upgrade; and

$100.0 million over four years from 2025–26 for an Active Transport Fund to support the construction and upgrade of bicycle and walking paths across Australia.

The Government is allocating $10.1 billion over 11 years from 2023–24 for existing projects in the Infrastructure Investment Program, including:

• $3.3 billion for North East Link in Victoria;
• $1.2 billion for the Direct Sunshine Coast Rail Line in Queensland;
• $1.4 billion for METRONET projects in Western Australia;
• $578.6 million for projects in New South Wales, including $112.0 million for the M1 Pacific Motorway Extension to Raymond Terrace;
• $431.7 million for the Coomera Connector Stage 1 (Coomera to Nerang) in Queensland;
• $133.6 million for projects in South Australia, including $100.0 million for the South Eastern Freeway Upgrade;
• $113.1 million for projects in Tasmania, including $50.0 million for the Mornington Roundabout Upgrade;
• $35.9 million for projects in the Northern Territory, including $25.0 million for the Carpentaria Highway Upgrade; and
• $27.1 million for the William Hovell Drive Duplication in the Australian Capital Territory.

The Government has allocated $1.7 billion in 2033–34 to continue existing road maintenance and safety programs, including:

• $1.0 billion for the Roads to Recovery Program;
• $200.0 million for the Safer Local Roads and Infrastructure Program; and
• $150.0 million for the Black Spot Program.

The Government will provide funding as part of its election commitment to establish a Strategic Fleet, including:

• $21.7 million over five years from 2024–25 for the Department of Infrastructure, Transport, Regional Development, Communications and the Arts to support the establishment of a Strategic Fleet, including delivery of the Strategic Fleet Pilot Program;
• $4.7 million over three years from 2024–25 to undertake a review of the Shipping Registration Act 1981 and Coastal Trading (Revitalising Australian Shipping) Act 2012;
• $2.7 million over two years from 2024–25 for a two-year pilot program led by the Office of the Fair Work Ombudsman to monitor compliance with the payment of Seagoing Industry Award 2020 Schedule A wages to seafarers on foreign vessels engaged in coastal trading under a Temporary Licence; and
• funding for a Strategic Fleet Pilot Program with three privately-owned vessels which would be available to requisition in times of need, with funding to be held in the Contingency Reserve until commercial negotiations have been completed and is not for publication (nfp) as it would impair the Commonwealth’s position in negotiating contracts with industry.

The Government will provide $302.6 million over five years from 2024–25 (and $53.5 million per year ongoing) to enable operations at Western Sydney International (Nancy-Bird Walton) Airport, including:

• $237.4 million over four years from 2024–25 (and $52.1 million per year ongoing) for border agencies to progress design, fit out and commissioning of the passenger terminal and shared Commonwealth facilities, provide federal policing and detector dogs at the airport to support critical border security and biosecurity functions; and
• $13.0 million over five years from 2024–25 (and $1.4 million per year ongoing) to support regulatory oversight functions and Commonwealth preparatory activities.

The Government will provide $68.0 million over four years from 2023–24 to support First Nations digital inclusion. Funding includes:

• $40.0 million over four years from 2023–24 to roll out community Wi-Fi in remote communities;
• $22.0 million over three years from 2024–25 to establish a First Nations Digital Support Hub and a network of digital mentors to increase access to online services and improve digital literacy and online safety among First Nations people; and
• $6.0 million over three years from 2024–25 to expand the Australian Digital Inclusion Index to improve national data collection on First Nations digital inclusion. The cost of this measure will be offset by redirecting funding from the 2022–23 October Budget measure titled Better Connectivity Plan for Regional and Rural Australia and from the National Indigenous Australians Agency’s Indigenous Advancement Strategy.

The Government will provide $22.5 million over four years from 2024–25 (including $18.5 million in capital funding) for the replacement and maintenance of essential infrastructure in the non‑self-governing Territories. Funding includes:

• $21.2 million over four years from 2024–25 to support the replacement of port infrastructure and to improve water security in the Indian Ocean Territories; and
• $1.4 million in 2025–26 to develop business cases to replace or maintain other essential infrastructure on Norfolk Island, the Jervis Bay Territory, and the Indian Ocean Territories.

The Government will provide $237.7 million over seven years from 2023–24 (and $2.3 million per year ongoing) to support aviation, road, rail and maritime transport priorities, including:

• $101.9 million over five years from 2024–25 (and $0.8 million per year ongoing) to extend the Remote Airstrip Upgrade Program and the Regional Airports Program for two additional rounds, and continue the Remote Aerodrome Inspection Programme to improve aviation safety and access at remote airstrips and regional airports;
• $78.8 million over three years from 2023–24 for the High Speed Rail Authority to undertake the development of a business case for the Sydney to Newcastle high speed rail corridor;
• $32.0 million over six years from 2024–25 to improve the National Road Safety Data Hub and support a National Road Safety Education and Awareness Campaign; and
• $10.1 million over four years from 2024–25 (and $1.5 million per year ongoing) to implement reforms to the Sydney Airport Demand Management Compliance Framework to strengthen the compliance regime and enhance aviation competition, and support regulatory functions for the protection of airspace above and around federal leased airports.

The Government will provide $154.5 million over six years from 2023–24 (and $12.6 million per year ongoing) to implement a New Vehicle Efficiency Standard to support greater choice of fuel-efficient vehicles that will reduce motoring costs and transport emissions. Funding includes:

• $84.5 million over five years from 2024–25 (and $12.6 million per year ongoing) to establish a regulator to administer the New Vehicle Efficiency Standard, including to capture emissions data, establish a credit trading platform and undertake monitoring and compliance activities, and to undertake further work to bring Australian vehicle standards into line with those of our peers;
• $60.0 million over four years from 2024–25 to support the installation of electric vehicle charging infrastructure at automotive businesses to support the transition to selling and servicing electric vehicles;
• $10.0 million in 2023–24 for a national communications campaign to raise awareness of the New Vehicle Efficiency Standard, with funding already provided for by the Government.

The Government will provide $7.9 million over two years from 2024–25 to support online safety including:

• $6.5 million in 2024–25 to develop a pilot of age assurance technologies to protect children from harmful online content; and
• $1.4 million over two years from 2024–25 for the Office of the eSafety Commissioner to support legal and compliance functions under the Online Safety Act 2021. This measure supports the implementation of the National Plan to End Violence Against Women and Children 2022–32.

The Government will continue to support media sustainability and deliver communications priorities with $78.9 million over five years from 2024–25 (and $7.4 million per year ongoing). Funding includes:

• $43.2 million over five years from 2024–25 (and $5.9 million per year ongoing) to support the delivery of communications priorities, including responding to emerging and evolving online harms, boosting regional connectivity, digital inclusion and communications resilience; and
• $22.6 million over five years from 2024–25 (and $1.5 million per year ongoing) to support the modernisation of media regulation in Australia, including the implementation of a prominence framework for internet-connected television devices and an expanded anti-siphoning scheme;
• $12.0 million in 2024–25 to support the financial sustainability of the Australian Associated Press; and
• $1.0 million over two years from 2024–25 to fund education and awareness of new mandatory minimum classifications for gambling-like content in computer games.

In addition, the Government has announced funding in relation to securing critical communications capabilities:

• $388.2 million over the forward estimates to upgrade Australia’s communications infrastructure and overseas property, including in the Pacific.