Federal Budget 2025: Infrastructure, defence boost for regions but programs ‘left wanting’

Regional Australians will receive a share of nationwide defence, road and health spending, but critics claim key projects have been neglected.

Whyalla Steelworks will receive a $500m overhaul. Picture: Dean Martin

Regional Australia will benefit from new road and defence projects, as well as an expansion of urgent care clinics and a “green metals” plan, but critics say there is little new funding.

The Albanese government’s pre-election 2025-26 budget also provides Cyclone Alfred recovery funds and previously committed NBN improvements, as well as new funding for bushfire recovery and festivals.

However, the budget appears short on major new dedicated regional programs, with ministers largely spruiking regional benefits of broader national initiatives, while others face a funding cliff.

The government said of an additional 50 new Medicare urgent care clinics, 17 would support regional Australians

“We continue to invest to grow and strengthen the healthcare workforce across regional Australia,” Regional Development Minister Catherine King and other ministers said in a statement.

Regional road funding includes $7.2bn towards upgrades to the Bruce Highway in Queensland, $350m to upgrade the Kwinana Freeway in Western Australia, $200m for upgrades to the Arthur Highway and $80m for the Southern Outlet transit lane extension in Tasmania.

There is $200m for the duplication of the Stuart Highway from Darwin to Katherine, in the Northern Territory, $125m for the Curtis Road level crossing removal in South Australia, and $200m for the Rockhampton Ring Road in Queensland.

The budget details improvements to the National Broadband Network in regional areas, although most of the funding has already been announced or shifted from existing programs.

“Strengthening digital connectivity across Australia (and) funding to complete the NBN fibre network is expected to provide improved access to over 334,000 premises located across regional Australia,” Ms King and other ministers said.

As well, a new “Universal Outdoor Mobile Obligation” would require mobile phone providers to offer voice and SMS “almost everywhere across Australia”.

The budget details a $1bn Green Iron Investment Fund, over seven years from 2024-25, to boost green iron manufacturing and supply chains, including $500m for South Australia’s troubled Whyalla steelworks.

“The fund will support early-mover green iron projects and unlock private investment at scale,” ministers said.

Joint funding with South Australia of up to $2.4bn would “stabilise and support the long-term future” of the troubled Whyalla steelworks and its workers, as well as the local community. This includes $192m towards administration and operating costs, and $18m for business creditors.

While $2m is provided in 2025-26 for the Regional Australia Institute, there appears no funding guaranteed beyond that.

There are also no further funds listed for the development of the proposed Marinus Link power cable between Tasmania and Victoria, with funding of $27.5m ending in 2024-25. That may be due to a final investment decision not expected until late in 2025, but it suggests funding will have to be found should the project – seen as vital to Tasmania’s pitch to become “the Battery of the Nation” – proceed.

Nationals leader David Littleproud said there was “absolutely nothing in this budget for regional Australia, other than more cuts”.

“Labor has no new funding for the Stronger Communities program, Local Roads and Community Infrastructure program, Growing Regions program and the Regional Precincts and Partnership program, critical to building community infrastructure in regional Australia,” Mr Littleproud said.

Regional centres will also benefit from new defence contracts funded in the budget, including the $850 million missile project based at Williamstown, near Newcastle, NSW; the $272m array radar project generating 700 jobs in Canberra, and; the build of 55 new bushmaster troop carriers in Bendigo.