Major Australian infrastructure projects now have certainty and clarity

Prime Minister Anthony Albanese’s government pledged significant investment towards transport and water infrastructure projects, and funding for new housing initiatives. This provides long-term certainty for projects which typically take years to deliver, unlocking investment opportunities for the sector.

Prior to the election, infrastructure funding was set at A$60.7 billion (approx. US$39 billion) over four years at the 2025-26 budget. This includes A$87.7 million over three years to deliver new water infrastructure projects, A$49.6 million for transport priorities, and A$17.1 billion for road and rail infrastructure projects over ten years. 

Road and rail

In the lead up to the election, the Albanese government made a number of significant road and rail promises:

Queensland

A$7.2 billion for safety upgrades on the Bruce Highway, the single largest investment ever into this nationally significant transport corridor.

A$200 million to ensure the delivery of the Rockhampton Ring Road.

A further A$70 million to seal the remaining 11 kilometres of unsealed pavement on the Kennedy Developmental Road between The Lynd and Hughenden.

New South Wales

Over A$2.3 billion for critical infrastructure upgrades in the growing Western Sydney region, including A$1 billion to preserve the corridor for the South West Sydney Rail Extension and A$500 million to upgrade Fifteenth Avenue.

A$465 million to plan for regional projects and fix notorious choke points, including A$250 million to upgrade Mona Vale Road and A$115 million to reduce travel times on Terrigal Drive.

Victoria

$2 billion to upgrade Sunshine Station, a crucial project to deliver Melbourne Airport its first rail link.

$1.1 billion to support upgrades along the Western Freeway.

$1 billion for the suburban road blitz, a new package of works to increase capacity and improve efficiency in Melbourne’s suburbs and surrounds.

Western Australia

A$350 million for the Westport to Kwinana Freeway upgrades.

Northern Territory

A$200 million to duplicate sections of the Stuart Highway from Darwin to Katherine.

Tasmania

A$200 million to upgrade the Arthur Highway.

South Australia

A$125 million for the Curtis Road level crossing removal.

Australia Capital Territory

A$50 million towards upgrading the Monaro Highway.

Social and affordable housing 

The Albanese government has promised to support social and affordable housing through initiatives like the Housing Australia Future Fund and the Social Housing Accelerator, with the goal of building 55,000 homes.

Up to A$4.5 billion in funding has also been committed for the states and territories to address infrastructure backlogs and deliver new housing. This includes A$1.5 billion through the Housing Support Program to fund projects to improve planning capability, deliver enabling infrastructure, as well as build more social housing. A$3 billion has been pledged in incentive payments under the New Homes Bonus. 

In addition, the Albanese government has committed to expanding its help to buy scheme through which the federal government will provide an equity contribution to support eligible home buyers to purchase a home with a lower deposit and a smaller mortgage.

It has also introduced a ban on foreign buyers from purchasing existing dwellings for two years from 1 April 2025, providing the Australian Taxation Office (ATO) with A$5.7 million to enforce the ban. It will also provide A$8.9 million to the ATO and Treasury to target land banking by foreign buyers. 

Hospitals

A key policy of the Albanese government prior to the election was a commitment to improving access to health by strengthening Medicare and committing significant additional funding to public hospitals. 

An additional 12% in funding will now be provided by the federal government to states and territories to support public hospitals, reduce wait times in emergency and reduce surgery wait lists. Although this funding does not directly support the development of new public hospitals, voters have sent a clear signal to the states and territories that investment in hospitals is a key electoral issue by re-electing the Albanese government. 

Social Infrastructure

In NSW, the Albanese government has committed A$80 million to support community infrastructure such as cultural and sporting facilities, parks and town centres. 

Looking ahead 

The continuation of existing policy and the promise of infrastructure investment likely means a stable stream of government work for contractors in the longer term. 

Infrastructure Partnerships Australia, an independent social and economic infrastructure think tank, noted that although there has been a slight increase in infrastructure funding compared to the previous year, it is still a $493 million decline in real terms.
Labor’s commitments to infrastructure spending are welcome and enhance continuity for constructions projects, there needs to be continued focus on improving productivity in the industry amidst budgetary constraints, and on implementing the successful delivery of its housing and infrastructure goals.

Co-written by Pia Castillo of Pinsent Masons.