Port overhaul overlooked in federal budget, with defence, Bruce and diaster funding big ticket items

Cash splashes for Defence, the Bruce and the Royal Flying Doctor Service in Townsville handed down in the federal budget, but there no fresh funding for the region.

Aerial photo of the Townsville CBD. Picture: Supplied.

Cash splashes for defence force growth, the Bruce Highway and future proofing the North with disaster funding are some of the key items for Townsville in the federal budget, but any hopes of funding for the Port of Townsville expansion have been dashed.

Mention of the $450 million Port of Townsville expansion was not included, a key project for northern advocacy groups.

The flood recovery fund, part of a nationwide $13.5bn spend on disaster management was one of the centrepieces of Tuesday night’s pre election federal budget, brought down by Treasurer Jim Chalmers.

“North and Far North Queensland have flooded. Storm clouds are gathering in the global economy too,” he said.

With the dilapidated Bruce Highway the North’s biggest infrastructure headache, Treasurer Jim Chalmers speech highlighted the previously announced $7.2 billion package to fix the Bruce Highway as “the single largest investment ever” in the controversial road.

CANBERRA, AUSTRALIA – MARCH 25: (L-R) Australian Treasurer Jim Chalmers, Prime Minister Anthony Albanese and Finance Minister Katy Gallagher walk the budget at Parliament House on March 25, 2025 in Canberra, Australia. The budget is expected to return to deficit after two years of surplus, focusing on cost-of-living relief measures, including extended electricity rebates and increased healthcare spending, while also addressing economic challenges and potential voter concerns ahead of the upcoming federal election. (Photo by Hilary Wardhaugh/Getty Images)

“Building Australia’s future means building on the strength of our regions,” he said.

As part of a $60 million package over three years, $24 million was announced for the 2025-2026 budget for the Townsville City Deal to support projects including the Royal Flying Doctor Service ‘super hub’ and the Lansdown Eco-Industrial Precinct.

Newly approved projects include $518.3 million to provide facilities and infrastructure to support new helicopter capabilities at Townsville’s RAAF Base and Field Training Area, with construction scheduled for completion in late 2028 and improvements to aircraft pavements and aeronautic ground lighting at the base worth $127.6 million to be completed in late 2026.

CANBERRA, AUSTRALIA – NewsWire Photos – March 25, 2025: Prime Minister Anthony Albanese and Federal Treasurer Jim Chalmers in the House of Representatives at Parliament House in Canberra. Picture: NewsWire / Martin Ollman

The Federal Government also announced a one-year extension to the Veterans’ Chaplaincy Pilot Program, with Townsville one of three pilot locations.

The program offers chaplaincy support to transitioning members of the ADF, veterans and their families.

A one-year extension was also given to the Military and Veteran Psychiatry Training Program which list Townsville as a placement area, providing opportunities for psychiatry trainees which are targeted at areas with a ‘high ADF presence’.

A deal to ensure a ‘more concerted approach” to eradicating yellow crazy ants was included with $6.3 million allocated for 2025-26 for areas in Townsville and adjacent to the Wet Tropics of Queensland World Heritage Area in Cairns.

The Government also announced it had purchased $50.0 million of debt owed by Rex to Rex’s largest creditor, in addition to providing an $80.0 million loan facility to the Administrators of Rex, to support Rex to “continue operating its regional network through the voluntary

administration period.”

Originally published as Port overhaul overlooked in federal budget, with defence, Bruce and diaster funding big ticket items