No new funding coming Victoria’s way for big build

Victoria will miss out on billions in new infrastructure funding while other states have won big, but Dan Andrews is adamant the state hasn’t been “ripped off.”

Treasurer Jim Chalmers maintained funding to several key Victorian projects. Picture: Getty

The federal government has recommitted to key major projects including Airport Rail, the Suburban Rail Loop and the Geelong Fast Rail.

However, despite billions of dollars of new money being committed to other states, no new infrastructure funding is coming Victoria’s way.

Victoria is set to receive $3bn in 2023-24, compared with $3.8bn to NSW, $3.3bn to Queensland and $2.8bn to Western Australia.

Over the forward estimates Victoria will be $2.5bn worse off than NSW and will pocket $700m less than Queensland.

Despite fears the Albanese government would scrap funding to a string of major projects it has retained $5bn for Melbourne Airport Rail, $2.2bn for the first stage of the Suburban Rail Loop and $2bn for the Geelong Fast Rail.

A further $156m remains for the Geelong City Deal, $23m will support projects in the ­Albury Wodonga region and $384m has been included for local roads and community infrastructure.

Victoria will also receive $8.7bn in rail investment – almost double any other state – and $5.7bn in road investment.

Melbourne Airport Rail retained $5bn in funding, despite fears it could be scrapped. Picture: Melbourne Airport

The recommitment to the three key projects will ­increase pressure on the ­Andrews government ahead of the state budget later this month.

Airport Rail and Geelong Fast Rail have been widely tipped to be put on hold as part of the state government’s ­efforts to rein in spending.

However, the status of more than 100 other major projects that have previously been promised federal funds, ­including the North East Link and M80 Ring Rd Upgrade, is unknown.

The signature North East Link faces major blowouts and delays amid speculation it is in the firing line after a federal government review of infrastructure projects.

Infrastructure Minister Catherine King said the review would identify projects of national significance and ensure the government’s 10-year $120bn pipeline – equivalent to the estimated cost of the Andrews government’s SRL project – was fit for purpose.

“Under the Liberals and ­Nationals, the number of ­infrastructure projects in the pipeline blew out from 150 to almost 800,” she said.

“Projects were left without adequate funding, resources or genuine commitment. It would be irresponsible to move ahead without fixing the backlog.

“This review will allow all levels of government time to consider the projects that are actual priorities, and assess their cost and deliverability in the current climate.”

In total, Victoria is expected to receive $40.3bn in federal funding in 2023-24, including $20.4bn in GST payments.

Funding is expected to grow to $44.9bn by 2026-27.

The government reiterated support for the 2025 Commonwealth Games, but said it was too early to announce ­detail and costings on federal support.

Premier Daniel Andrews remained adamant Victoria wasn’t “ripped off” at Tuesday night’s budget, confirming he’ll keep pressuring the Federal government for cash in years to come.

“There’s a lot of catching up to do … it takes time, you can’t in (just) two budgets fix nine years of neglect in just one budget,” he said.

“There are good, positive signs, and we’ll keep the pressure on, of course, because we want to make sure that we get our fair share.

“There was a lot of good stuff in last night’s budget, it’s not everything, no one budget can deal with nearly a decade’s worth of problems.”

Mr Andrews said the budget was a step in the right direction for the state.

“We’ve just come off the back of almost a decade where we were being ripped off,” he added.

“There’s very positive signs that that’s come to an end.

“We’re delighted to work with them (but that) doesn’t mean that we won’t keep advocating or calling them out.”

Victoria will receive $5.7bn in road investment. Picture: David Crosling

Mr Andrews said he wasn’t phased by the lack of funding for the 2026 Commonwealth Games but expected some extra support from the Federal government next year.

“It’s not the last budget, the Commonwealth Games are not happening next week, so we do have time,” he said.

“We do have some optimism that the Albanese Government will be a partner.

“Now the extent to which they partner and which bits they might provide support for, that’s the subject of all sorts of discussion.

“We provide funding already… but at the same time we’re not letting them off the hook.”

The Andrews government has long argued Victoria fails to receive its fair share of federal infrastructure funding.

From 2014-18 Victoria received less than 10 per cent of funding, despite having a quarter of Australia’s population.

State parliament’s Economy and Infrastructure Committee in 2022 released a bipartisan report into commonwealth funding that found “a longstanding and significant gap between Victoria’s share of commonwealth infrastructure funding and its population”.

A Grattan Institute report last year found that Victoria ­received 18 per cent of federal transport funds even though it had 26 per cent of Australia’s population.

Originally published as No new funding coming Victoria’s way for big build