2022 Budget: Federal funding for regional infrastructure projects in doubt

Stadium upgrades, childcare and accommodation centres may not go ahead for the regions, after Infrastructure Minister Catherine King flagged funding changes. See which towns could miss out.

Millions of dollars’ worth of funding for major regional projects, including sporting stadiums, childcare centres and accommodation, is likely to be cancelled as the Albanese government casts doubt on a $1.38 billion regional funding package.

A $10 million sports stadium at Yarrawonga is among projects plunged into doubt with the anticipated axing of round six of the Building Better Regions Fund.

New England MP Barnaby Joyce was in Yarrawonga to announce the former Morrison government would commit federal funds to the sports stadium project.

Former Deputy Prime Minister Barnaby Joyce travelled to Yarrawonga, in the seat of Nicholls, in April to announce the federal contribution to the project that had already secured state government funding.

“We definitely need that funding,” Moira Shire mayor Libro Mustica said. “It was promised to us by the former government. If that funding doesn’t come, this project in Yarrawonga, which is the fastest growing regional town in Victoria and doesn’t have a multi-sports stadium, we, as a council, can’t raise the kind of funding required to build this complex.”

Yarrawonga's $10 million sports stadium plans are up in the air.

Also now in doubt is Horsham’s planned $6.4 million upgrade to the Sawyer Park pavilion and the much hoped for Dunmerkle Childcare Centre in the Wimmera.

In April, the former Morrison government committed $845,000 towards the long day care centre in Murota to give the Minyip, Murtoa and Rupanyup communities an additional 30 day care places.

The centre had already encouraged parents to register their interest for places.

Mallee MP Anne Webster has been an advocate for the Wimmera childcare centre for years. PICTURE: NCA NEWSWIRE / GARY RAMAGE

Mallee MP Anne Webster, who has been a fierce advocate for the need for the centre, said she was concerned Labor was going to let regional Australia down in next week’s federal budget.

“They haven’t indicated what they are going to do. But I’ve got no confidence given the Prime Minister has come out and said $10 billion will be chopped from regional funding,” Dr Webster said.

“Where they are sending their money to assist Dan Andrews back into government in Victoria won’t be out in the regions.”

Federal government assistance Birchip Cropping Group's accommodation centre is in doubt.

Birchip Cropping Group’s $5.1 million Nexus accommodation project was also anticipating federal funding, having applied for round six of the Building Better Regions Fund.

BCP chief executive Fiona Best said she was still hopeful, “we haven’t been advised of an outcome one way or another”.

The shovel-ready project would provide short-term accommodation in Birchip for researchers, students and agricultural professionals working in northern Victoria.

Other projects with pending applications for round six funding include a $3.5 million project for sporting and gym facilities in Robinvale more than two decades in the making, a $1 million upgrade of the Beaufort Tourism Park and a $1.63 million upgrade to the Mildura Clay Target Club.

Infrastructure Minister Catherine King has flagged changes to regional development policy that will determine how funding is allocated.

When asked to confirm whether the latest round of funding from the Building Better Regions Fund would go ahead, a spokeswoman from Minister King’s office said: “Decisions about the future of the Building Better Regions Fund will be in the October Budget.”

But she pointed to the outcome of the Australian National Audit Office, published in July, which criticised the scheme for a lack of proper process and skewing of decisions towards electorates held by the Nationals.