Budget 2017: Badgerys Creek airport has $5bn for 2026 landing

The Turnbull government will kickstart construction of a second Sydney airport with $5.3 billion public funding.

Badgerys Creek has a 2026 target to begin operating domestic and international flights.

The Turnbull government will kickstart construction of a second Sydney airport at Badgerys Creek with $5.3 billion public funding and a 2026 target to begin operating domestic and international flights.

After 30 years of indecision and infighting over how to tackle congestion at Kingsford Smith Airport and looming capacity limits, the federal budget provides for massive earthmoving works to start on the 1800ha site in the second half of next year.

The $5.3bn expenditure will be treated off-budget, channelled into a newly established Western Sydney Airport Corporation, much like NBN Co was created for rolling out the national broadband network.

With Sydney Airport Group rejecting its option to take up the project, the government will step in as builder and equity owner with debt funding. Treasurer Scott Morrison anticipates expenditure will be offset by the value of the asset, which could eventually be sold to private interests.

The new airport, competing with Sydney’s existing airport, is part of a plan to open up Sydney’s west and provide major airport services close to where two million people live.

If the government can stick to its 2026 timetable to open for business, the airport is projected to have the capacity for 10 million passengers a year. Initially conceived as a single 3.7km runway with a northeast flight path, the new Western Sydney Airport would be able to accommodate the largest passenger aircraft in service including the Airbus A380. A second parallel runway could be built later — but current plans do not include one. The airport is planned as a 24-hour operation whereas Kingsford Smith has an 11pm-6am curfew.

Construction of a second Sydney airport — which has Labor support and in particular the backing of opposition transport and infrastructure spokesman Anthony Albanese — stands to be the biggest government-funded project since the Snowy Mountains Hydro-Electric Scheme.

The government estimates 9000 jobs will be created in the construction and initial operation phases. By the 2030s, according to budget projections, Western Sydney Airport could generate 20,000 local jobs — and up to 60,000 in the long term.

In his budget speech, Mr Morrison also flagged the possibility of further federal money from the government’s new $10bn National Rail Program helping to fund a western Sydney airport rail link to the city.

He cautioned that federal rail funding would compete with other project proposals such as a Tullamarine airport rail link in Melbourne and a new regional line in Victoria. Funding a western Sydney Airport rail link would depend on a “proven business case”.

Despite the various site approvals required, the government says it is committed to an early start to make the 2026 deadline. Tenders for initial earthworks on the site are expected to go out by the end of this year.