Regional funding: How much has been cut from infrastructure?

Figures released this week reveal a further breakdown of regional funding cuts from the October budget, despite promises of a windfall in the future.

Funding for regional roads and rail across Australia has been slashed by $1.2 billion over the next four years, a Senate hearing has confirmed.

But the Albanese Government maintains regional Australians will be better off in the long-term, with infrastructure spending promised to increase by more than $4 billion in the coming decade.

Picture: Nicole Cleary

As the fallout from the October budget continues, Department of Infrastructure officials this week revealed $17.5 billion has been allocated to projects in regional Australia between 2022-26, compared to $18.7 billion under the previous government.

The cut is part of a $4.7 billion reduction to funding across the whole Infrastructure Investment Program, which includes core funding for roads and rail and popular programs such as road black spot and bridge renewal projects.

It does not include the Building Better Regions Fund or water infrastructure such as dams, both of which were also on the chopping block in last month’s budget.

Regional Australia had been bracing for cuts in Labor’s first budget, as the Government looked for savings.

A spokeswoman for Infrastructure Minister Catherine King said funding for some measures had been moved closer to the expected actual delivery dates, due to inflation, job market pressures and supply chain constraints.

Catherine King, Minister for Infrastructure, Transport and Regional Development. Picture: NCA NewsWire/Gary Ramage

“These decisions will lower pressure on the construction sector and smooth out the pipeline of infrastructure investment,” she said.

The spokeswoman said moving project timelines meant a slight reduction in funding over four years, but an overall increase in funding over 10 years.

Figures provided to estimates showed regional Australia will claim 34.4 per cent of program funding over 10 years, compared to 31.2 per cent under the previous government.

The Opposition’s infrastructure spokeswoman, Nationals senator Bridget McKenzie, argued the only significant cuts in the budget were to regional Australia.

“These projects are designed to build the future prosperity and sustainability of our regional communities,” Senator McKenzie said.

Senator McKenzie, said she had no confidence the Government would prioritise regional projects in the long-term.

“We sought clarity on start times for supposed delayed projects but didn’t get any answers,” she said.

“We are also yet to get a full list of which projects have been pushed out and which have been cancelled.”