The big spend on infrastructure is forecasted provide four-fold benefit to the economy, i.e. every dollar the government invests will deliver a $4 return to the economy.
This $24 billion allocation puts total federal government investment in infrastructure projects over the next decade at $75 billion.
The 2018-19 package
Rail and road infrastructure is the major focus of this year’s budget and new national initiatives include $3.5 billion on roads of strategic importance – $1.5 billion for the Northern Australia Package, $400 million for the Tasmanian Roads Package, $100 million for the NSW and ACT Barton Highway Corridor Package and $1.5 billion for future national priorities – $1 billion Urban Congestion Fund, and $250 million for Major Project Business Case Fund.
Turning to the states and territories, the biggest winner this year is Victoria which was allocated $7.8 billion. This includes $5 billion for the Melbourne airport rail project, $175 billion for the North East Link, and $475 million for Monash Rail.
The $24 billion in new infrastructure investment also includes:
- $5.2 billion for Queensland including $3.3 billion for the Bruce Highway extension, $1 billion for the M1 expansion, and $390 million for Brisbane Metro.
- $2.8 billion for WA of which $1.05 billion will go towards Metronet Rail, $944 million to Perth’s congestion package, and $560 million for the Bunbury Outer Ring Road.
- $1.8 billion for South Australia. $1.2 billion will be spent on the North-South Corridor and $220 million on the Gawler Rail Line electrification.
- $1.25 billion for NSW including $971 million for the Pacific Highway Coffs Harbour Bypass and $400 million for the Port Botany Rail Duplication.
- $921 million for Tasmania of which $461 million will go towards replacing the Bridgewater Bridge. $400 million will be allocated to a Tasmanian road package.
- $259.6 million for the NT, including $180 million for the Central Arnhem Road upgrade and $100 million for the Buntine Highway upgrade.
2018-19 budget papers can be found here.