Federal Budget 2016: $14 billion funding will get Sydney and NSW moving

The Turnbull government will confirm tomorrow that it will offer $2.2b extra to fund projects including Sydney Metro and Parramatta Light Rail.

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A $14 BILLION roads and rail package for critical infrastructure to be built in Western Sydney and across NSW will be unlocked with federal funding to be promised in ­tomorrow’s Budget.

The Turnbull government will confirm it will offer NSW a further $2.2 billion in funding for the Sydney Metro and Parramatta Light Rail, as well as a raft of other projects.

The money is being promised in return for the Baird government’s “poles and wires” electricity privatisation.

Prime Malcolm Turnbull yesterday / Picture: Ross Schultz

Prime Minister Malcolm Turnbull will this week write to the Premier Mike Baird seeking agreement for the funding.

If approved, it would mean NSW — and particularly Western Sydney — receives the bulk of all federal funding assistance for infrastructure projects across the country, ­expected to leverage up to $40 billion in capital works.

The funding would include $1.695 billion for the Sydney Metro project — the largest metro-suburban rail project in the country — designed to double the number of trains into the city and clear the city’s public transport bottlenecks.

Another $98.4 million will be injected into the “Sydney’s Rail Future” project — a long-term plan to lift the capacity of Sydney’s rail network.

It would also offer $78.3 million for the Parramatta Light Rail, $60 million for the state’s Smart Motorways plan and $52.2 million for the clearance of road pinch points.

Regional NSW would also benefit from $167.3 million in funding for the Regional Road Freight Corridor.

Under the 2014 Asset Recycling Scheme, the federal government agreed to pay 15 per cent of the price of the asset sold if all the sale proceeds were allocated to new infrastructure investment. The five-year scheme was based on a first-come-first-served arrangement with the states, with NSW being the first on board with the electricity privatisation scheme and the sale of Newcastle Port.

The $2 billion in the Budget would lock in a combined Commonwealth-NSW infrastructure spend of $14.2 billion once the Baird government agrees to the new funding.

The proposed Parramatta Light Rail Network / Supplied

“The government is eagerly awaiting agreement from the NSW government to ensure these funds can flow to these projects swiftly, for the benefit of all NSW residents,” Treasurer Scott Morrison said.

Major Projects Minister Paul Fletcher added: “The Turnbull government is continuing to invest in infrastructure in a range of projects all around the country ... designed to drive productivity, efficiency and liveability.”

The infrastructure package is on top of an announcement last week that the Turnbull government will set up an “infrastructure bank” to underwrite private sector investment in future projects.

As well as the infrastructure push, the Budget ­tomorrow will also include an extra $1.2 billion for schools, as well as $118 million over two years for schoolchildren with a disability.

Mr Morrison said the Budget funding would be tied to student results. He also said teachers would not get pay rises unless they were able to demonstrate learning outcomes for their students.

Opposition Leader Bill Shorten said this measure meant schools would receive $3.5 billion less under the Coalition compared to what had been proposed by Labor.

with Alicia Wood