Insight,

Federal Budget May 2023-24: Infrastructure

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The Government has once again announced a range of measures to invest in key infrastructure projects in each State and Territory.  Critical investments are, in particular, being made in new and existing road, rail and community infrastructure projects. 

Key commitments

The Budget has announced a number of material spending initiatives to infrastructure projects. The key commitments by jurisdiction are as follows:

Key Commitments
INDIVIDUAL
Example uses 2
Australian Capital Territory

The Government has allocated funding of:

  • $266.9 million for road construction projects and network maintenance, as well as transport development, innovation projects and grants to land transport research bodies
  • an additional $52.5 million for priority rail projects in the Australian Capital Territory
Queensland

Large Projects

  • Olympic and Paralympic Games: the Australian Government is providing $3.4 billion over ten years from or infrastructure investment to support the delivery of the Brisbane 2032 Olympic and Paralympic Games. Key funding includes a capped investment of up to $2.5 billion for the development of Brisbane Arena and a capped investment of up to $935.0 million investment towards 16 new or upgraded venues as part of the Minor Venues Program
  • Cairns Marine Project: The Australian Government is providing $230 million over 5 years from 2023–24 towards the delivery of 2 major construction projects in Cairns. This includes a major expansion to the Cairns Marine Precinct (with an additional $30 million committed in this Budget) and a new Central Queensland University campus in the Cairns CBD

Other Key Investments include:

  • $163.9 million to support projects in the Southeast Queensland region that deliver jobs, greater digital and transport connectivity and more liveable communities, including the construction of the Kangaroo Point Green Bridge and infrastructure provided through the SEQ Innovation Economy Fund
  • $58 million support projects in Townsville, including the Port of Townsville channel upgrade
  • $7.5 million as part of the Hinkler Regional Deal to support the construction of a multi-use conveyor at the Port of Bundaberg
New South Wales
  • The Government is providing an additional $302.9 million to the Western Sydney Infrastructure Plan. This funding is intended to be used to enhance capacity and improve transport infrastructure in Sydney’s western suburbs.
  • The Government has also allocated $25 million of funding to support the Hunter region and the Port of Newcastle to become hydrogen ready
Northern Territory
  • The Government is providing $5.9 million as part of the Barkly Regional Deal which seeks to deliver a range of economic, social and cultural initiatives in the Barkly region, including a purpose-built boarding facility in Tennant Creek
South Australia
  • The Government is committed to providing $39 million as part of the Adelaide City Deal which seeks to support projects in Adelaide and the surrounding region, including the development of a new innovation and cultural precinct in the city centre
Tasmania

The Government is providing funding of:

  • $305.0 million from 2023–24 to 2027–28 to deliver urban renewal projects in Hobart and Launceston, with $240.0 million to help unlock the potential of the Macquarie Point precinct in Hobart and $65.0 million for a stadium redevelopment in Launceston
  • $20.5 million as part of the Launceston City Deal to support projects in Launceston to improve liveability and innovation, increasing incomes and reducing levels of disadvantage
Western Australia

The Government has committed:

  • $565.0 million from 2023–24 to 2028–29 to support common-user upgrades of Pilbara-based ports, Dampier and Lumsden Point, to expand export and import capacity
  • $11 million for the Perth City Deal, to support a range of projects in Perth, including the Edith Cowan University Cultural and Creative Industries Education CBD Campus
Victoria
  • The Australian Government is providing funding of up to $65 million to support projects including the Shipwreck Coast Master Plan, Great Ocean Road projects and projects in the Geelong city centre

Key Investment areas

In addition to the spending measures outlined above, the Budget has outlined a range of broad spending measures on additional infrastructure projects. The key areas of investment are:

Areas of investment
INDIVIDUAL
Example uses 2
Affordable housing

The Government has committed to $1.9 billion for state affordable housing services, consisting of $1.7 billion through the National Housing and Homelessness Agreement and $187.5 million through National Partnership payments

State Infrastructure Projects

The Australian Government will provide funding of $15.5 billion to support state infrastructure projects. The key commitments include:

  • $120.1 million for safety works under the Black Spot Projects where there have been serious crashes.
  • $95 million in additional funding to the Bridges Renewal Program.
  • $69.2 million in additional funding to the Northern Australia Roads (Queensland, Western Australia and Northern Territory).
  • $157.1 million to support the development of business cases for coach and rail infrastructure projects.
  • $3.8 billion in additional funding for rail investment across Australia’s rail network.
  • $8.2 billion in additional funding for road investment, targeting significant projects that will improve the efficiency and safety of Australia’s road network.
  • $817 million to upgrade key freight routes.
  • $15 million is provided to the Albury Wodonga Regional Projects which deliver economic and education benefits and improve the liveability of the community.
  • $349.6 million to support local councils to deliver priority local road and community infrastructure projects across Australia. 
Closing the gap - further investment

To provide access to essential infrastructure, the Government has committed:

  • $150.0 million to improve water security for regional and remote First Nations communities through the National Water Grid Fund
  • $20.8 million will also be provided to undertake urgent repairs and capital works for Aboriginal Hostels Limited
National Water Grid Fund
  • The Australian Government is providing $3.2 billion over 12 years from 2022–23 to expand investment in nationally significant, transformational water infrastructure projects to assist in developing regional communities. (New measures associated with this item are listed in Table 1.4 and described in more detail in Budget Paper No. 2, Budget Measures 2023–24.)
Better funded national broadcasters

The Government will provide $7.7 billion over 5 years from 2023–24 to support Australia’s national broadcasters, including $6.0 billion for the Australian Broadcasting Corporation (ABC) and $1.8 billion for the Special Broadcasting Service (SBS).

Key funding includes:

  • $7.6 billion over 5 years from 2023–24 for base operational funding for the ABC and SBS, determined on a 5-year rolling basis from 2023–24 for the operation of television, radio and digital media services;
  • $52.4 million over 3 years from 2025–26 for the ABC to continue to support local news and current affairs services;
  • $45.0 million over 4 years from 2024–25 for SBS to continue the availability of news and content for Chinese and Arabic speaking communities in Australia. 
Building a better future through considered infrastructure investment

The Government will provide $1.8 billion over 10 years from 2023–24 for infrastructure priorities to support productivity and jobs.

Key funding includes:

  • $1.1 billion in 2032–33 to continue existing road maintenance and safety programs, with:
    • $500.0 million for the Roads to Recovery Program
    • $350.0 million for national road network maintenance
    • $110.0 million for the Black Spot Program
    • $85.0 million for the Bridges Renewal Program
    • $65.0 million for the Heavy Vehicle Safety and Productivity Program
    • $18.9 million for transport research organisations and innovation projects
  • $361.9 million over 8 years from 2023–24 for infrastructure projects in New South Wales, including safety upgrades on the Bells Line of Road and Nowra Bypass planning
  • $200.0 million over two years from 2023–24 for the Major Projects Business Case Fund to support the planning of land transport infrastructure projects
  • $60.0 million over 3 years from 2023–24 to continue supplementary local road funding in South Australia
  • $3.0 million in 2023–24 to undertake a feasibility study for an intermodal terminal in Parkes, New South Wales to support the Inland Rail program, with funding to be redirected from existing National Intermodal Corporation equity.

The Government will also provide:

  • equity funding to WSA Co Limited for the construction of facilities to support border services and law enforcement operations at the Western Sydney International (Nancy-Bird Walton) Airport, with the financial implications not for publication (nfp) due to commercial sensitivities
  • $18.5 million in 2023–24 for border agencies to undertake design and planning work for operations. 
Funding for Territories

The Government will provide $31.1 million over 4 years from 2023–24 (and $1.0 million per year ongoing) to support the delivery of essential services and infrastructure to the Indian Ocean Territories and Norfolk Island.

Key funding includes:

  • $24.4 million over 3 years from 2023–24 to upgrade rockfall and landslide infrastructure and repair roads and footpaths on Christmas Island
  • $6.0 million over 4 years from 2023–24 (and $1.0 million per year ongoing) to support the work health and safety of workers in the Indian Ocean Territories and Norfolk Island
  • $0.7 million in 2023–24 to support the delivery of state-type services on Norfolk Island. 
Heavy Vehicle Road User Charge – increase

The Government will increase the Heavy Vehicle Road User Charge rate from 27.2 cents per litre of diesel by 6 per cent per year over 3 years from 2023–24 to 32.4 cents per litre in 2025–26. This will decrease expenditure on the fuel tax credit by $1.1 billion over 4 years from 2023–24.

National Approach for Sustainable Urban Development

The Government will provide $687.4 million over 6 years from 2022–23 for a national approach to sustainable urban development in Australia.

Key funding includes:

  • $211.7 million over 3 years from 2023–24 to establish the Thriving Suburbs Program to provide grants for community infrastructure in urban and suburban communities through a competitive grants program
  • $159.7 million over 4 years from 2023–24 to establish the Urban Precincts and Partnerships Program to support investment in place-based priorities of local urban communities through a collaborative partnerships approach with state, territory and local governments and communities
  • $11.0 million over 4 years from 2023–24 to establish the Cities and Suburbs Unit within the Department of Infrastructure, Transport, Regional Development, Communications and the Arts to deliver the National Urban Policy and the regular State of Cities report. 
Cultural Policy – National Collecting Institutions – sustainability

The Government will provide $535.3 million over 4 years from 2023–24 (and $118.3 million per year ongoing) to support the operations and long-term financial sustainability of 9 National Collecting Institutions.

Key funding includes:

  • $146.1 million over 4 years from 2023–24 (and $31.2 million per year ongoing) for the National Library of Australia, including for the continuation of the Trove digital database, extension of storage facilities, building maintenance and IT infrastructure
  • $119.1 million over 4 years from 2023–24 (and $23.1 million per year ongoing) for the National Gallery of Australia, including for building upgrades and maintenance
  • $78.3 million over 4 years from 2023–24 (and $16.6 million per year ongoing) for the National Museum of Australia, including for gallery refurbishments, fire safety works, IT upgrades and leasing of additional storage space
  • $37.8 million over 4 years from 2023–24 (and $8.8 million per year ongoing) for the Museum of Australian Democracy at Old Parliament House, including for building refurbishments and upgrades and conservation works
  • $36.5 million over 4 years from 2023–24 (and $8.2 million per year ongoing) for the National Archives of Australia, including to upgrade data centres and digitise at-risk and high priority records
  • $34.0 million over 4 years (and $9.7 million per year ongoing) for the National Film and Sound Archive, including to replace building management, security and fire safety systems
  • $33.4 million over 4 years from 2023–24 (and $8.1 million per year ongoing) in additional operating funding to enable the Bundanon Trust to make full use of its facilities
  • $27.0 million over 4 years from 2023–24 (and $7.5 million per year ongoing) for the National Portrait Gallery of Australia, including for building upgrades, repairs and maintenance
  • $23.0 million over 4 years from 2023–24 (and $5.1 million per year ongoing) for the Australian National Maritime Museum, including for building repairs, safety and compliance works. 
Online safety

The Government will provide an additional $134.1 million over 4 years (and $33.7 million per year ongoing, in addition to the existing base funding of $10.3 million per year ongoing) for the Office of the eSafety Commissioner to continue to support Australians online, including through enhanced educational, outreach and investigatory activities.

Reducing Transport Emissions

The Government will provide $20.9 million over 5 years from 2022–23 for initiatives to decarbonise the transport and infrastructure sectors and support achieving our net zero by 2050 target.

Key funding includes:

  • $7.8 million over 4 years from 2022–23 to develop a Transport and Infrastructure Net Zero Roadmap and Action Plan to support the decarbonisation of the transport and infrastructure sectors
  • $7.4 million over 4 years from 2023–24 to develop Fuel Efficiency Standards to encourage light vehicle manufacturers to increase the supply of fuel efficient and electric vehicles in the Australian market
  • $5.2 million over 4 years from 2023–24 to support Australia’s transition to electric vehicles through the development of a national charging infrastructure mapping tool, safety guidance and training for emergency service workers. Funding will also support the evaluation of requirements for retrofitting existing multi-residential buildings with electric vehicle charging infrastructure, and a large format battery recycling, reuse and stewardship initiative in Australia
  • $0.6 million in 2023–24 to develop a Maritime Emissions Reduction National Plan to facilitate the energy transition for the domestic maritime sector. 
Supporting Transport Priorities

The Government will provide $267.4 million over 7 years from 2022–23 to support land, maritime and aviation transport priorities, including to increase productivity and maintain safety across the sectors.

Key funding includes:

  • $64.2 million over 6 years from 2022–23 for the Department of Infrastructure, Transport, Regional Development, Communications and the Arts to enable the delivery of transport and infrastructure priorities, including $35.6 million for IT systems to support infrastructure investment and road vehicle safety regulation
  • $56.8 million in additional funding in 2023–24 to support and review the ongoing safety and regulatory functions of the Civil Aviation Safety Authority, the Australian Maritime Safety Authority and the Australian Transport Safety Bureau
  • $43.6 million over 4 years from 2022–23 to establish a new National Road Safety Action Grants Program to support community education and awareness, vulnerable road users, First Nations road safety, technology, innovation and research
  • $22.3 million over 6 years from 2023–24 for phase 3 of the Strategic Local Government Asset Assessment Project to continue assessments of local government road assets, which will support development of a national automated road access system for heavy vehicles
  • $18.9 million over 3 years from 2023–24 to procure road safety data, research and evaluate projects
  • $16.5 million over 5 years from 2023–24 for the car safety ratings program which includes testing protocols for light vehicles and safety evaluations of used vehicles
  • $13.5 million over 3 years from 2023–24 for an additional round of the Remote Airstrip Upgrade Program to support improved safety and access at remote airstrips and facilitate air connectivity and the delivery of goods and services to remote communities
  • $1.2 million in 2023–24 to continue development of the Maritime Single Window project and deliver a business case to streamline reporting for Australian sea ports
  • $0.4 million in 2022–23 to enable the National Transport Commission to progress the rail interoperability work plan, to be met from funding previously included in the Contingency Reserve.
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