Victorian government pledges money for the Mordialloc bypass

A $300 million bypass stretching 9km around suburbs on Melbourne’s southeastern edge could help solve traffic congestion.

Where the Mordialloc Bypass will connect the Mornington Peninsula Freeway and Dingley Bypass. Picture: VicRoads

VICTORIA will spend $300 million building a 9km bypass around suburbs on Melbourne’s southeastern edge and Premier Daniel Andrews said it would bring the state closer to solving traffic congestion.

Construction on the Mordialloc bypass will start in 2019 and take traffic from the end of the Mornington Peninsula Freeway in Melbourne’s southeast, to the Dingley Bypass. It is expected to be completed by 2022.

“We’ll build the Mordialloc Bypass to slash congestion and create jobs in Melbourne’s southeast,” Mr Andrews said on Tuesday.

Roads Minister Luke Donnellan said Melbourne’s southeast was a fast growing community and the Mordialloc bypass would meet that growth while also reducing current congestion.

The announcement is the last drop before the state budget is unveiled this afternoon.

Treasurer Tim Pallas’ third budget will deliver more than $8 billion in surpluses over the next four years, with a $1.2 billion surplus this financial year.

Population growth in Victoria is driving housing prices and construction and the state government is reaping the stamp duty windfall.

Victorian Treasurer Tim Pallas will hand down the budget this afternoon. Picture: Tim Carrafa

Debt is being kept below the level the government inherited and the push for more infrastructure projects, which in turn is driving more jobs, is expected to continue.

“We’ve increased our level of infrastructure investment from around about $4.9 billion to $10.1 billion in this budget,” Mr Pallas said on Monday.

The government has already announced more level-crossing removals planning for the North East Link, a regional rail renewal and an investigation in an airport rail link.

But the regional rail projects are dependent on federal cash and a stoush is looming between the two governments over the $1.45 billion price tag.

The money is owed under the asset recycling scheme after Victoria sold the Port of Melbourne lease for $9.7 billion.

The $1.45 billion is included in Tuesday’s budget but the projects will not go ahead without the Commonwealth funds, Mr Pallas said.

After a year of growing community concern about crime, $2 billion over four years has been announced for extra police and community safety initiatives. There is also a $308 million serious offender management overhaul in the works and more money for the Ice Action Plan.