Federal Labor prepare major cash splash for Andrews government’s Suburban Rail Loop

As parties switch to campaign mode, the federal Labor Party is preparing to drop a massive sum on the Suburban Rail Loop as it eyes a crucial swing seat.

Federal Labor is preparing a major cash splash for the Andrews government’s Suburban Rail Loop as it eyes the crucial Victorian swing seat of Chisholm.

Works on the $34.5bn SRL East, the first stage of the 90km rail loop, are expected to start later this year and cash-strapped Premier Daniel Andrews has been pushing for commonwealth funding.

The most expensive infrastructure project ever planned in Victoria, SRL East is a 26km tunnel between Cheltenham and Box Hill, reshaping suburban Melbourne with major developments around six new station precincts.

Then Federal Labor Leader Bill Shorten backed the Victorian Labor government's promise for a new suburban rail loop, pledging $10bn. Picture: Penny Stephens

Works have begun on the first stage of the Suburban Rail Loop, trains aren't set to hit the tracks until 2035.

This month’s federal budget is not expected to include an injection for SRL, after Scott Morrison told the Herald Sun last year he would not chip in.

But senior federal Labor sources said they were planning a major commitment, likely to be announced after the budget when parties switch into campaign mode for a May election.

In 2019, then-Labor leader Bill Shorten promised $10bn for the SRL, which would have been the biggest ever federal investment in a public transport project. That was before a business case was finalised or a price tag attached to the SRL.

The Herald Sun understands federal Labor is still deciding how to structure its 2022 pledge.

While some works are set to begin this year, SRL East won’t open until 2035, meaning most funding may be delivered outside of four-year budget costings. The Andrews government has prioritised $9.3 billion to kickstart construction.

Federal Labor figures said investing in SRL was a “no-brainer”, both as an infrastructure project and a political decision.

The Suburban rail loop will be one long tunnel, with six underground stations in Cheltenham, Clayton, Monash University, Glen Waverley, Deakin University in Burwood, and Box Hill.

An artist's concept of a Suburban Rail Loop at Cheltenham.

The full 90km line, which could cost as much as $120bn, was hailed as a major vote-winner for the Premier at the 2018 state election and helped Labor pick up a series of Liberal seats in Melbourne’s east.

SRL East includes a station at Box Hill in the seat of Chisholm, held by Liberal MP Gladys Liu by a margin of just 0.57 per cent, which Labor strategists believe is the Victorian electorate they have the best chance of taking from the Coalition in May.

Asked about the Premier’s SRL commitment last year, Mr Morrison said: “All the best to them … We’ll make our investments where we think we can make the biggest difference.”

In November, federal opposition infrastructure spokeswoman Catherine King said she would have “more to say” soon about the “incredibly important” project.

A state government spokeswoman said they would “continue to work closely” with both major parties in Canberra, the community and stakeholders to “deliver this vital project.”