The Australian government will axe 50 “high-risk” infrastructure projects nationwide to curb spending after a $33 billion budget blowout.
Funding will be slashed for several Queensland infrastructure projects, including the Mooloolah River interchange and the Caloundra Tennant Creek to Townsville corridor upgrade at Dingo Park Road.
The Geelong Fast Rail, the Sydney to Newcastle Faster Rail upgrade, the Truro Bypass, and the New England Highway also lost out following an independent review of the infrastructure investment program.
Infrastructure Minister Catherine King said the review found several projects could not be delivered with the available funding—many of which had either stalled, made little progress, or did not align with federal, state, and territory priorities.
She said the former Coalition government engaged in “economic vandalism” by announcing projects it knew it could not deliver.
“We also know that there continue to be significant cost pressures in the system, and we will work collaboratively and proactively with the states and territories to manage these,” she said.
On Nov. 14, Ms. King revealed that states and territories would now have to pay for 50 percent of the cost of new regional road and rail infrastructure projects, up from the original 20 percent.
Regional Development Minister Kristy McBain said it was in response to the infrastructure pipeline “blowing out” from 150 projects to 800 projects under the Liberals and Nationals despite there being no additional funding.
“It has to be backed up by money,” she told Sky News Regional Breakfast.
“If we were to keep the pipeline as it is, we wouldn’t be able to build anything new until 2033,” she said.
Displeasure From State Labor Counterparts
Queensland Premier Annastacia Palaszczuk said she was unhappy with the state’s project cuts, dispatching Deputy Premier Steven Miles and a delegation of Queensland mayors to meet with Ms. King in Canberra.Meanwhile, Queensland Treasurer Cameron Dick refuted Ms. King’s claim that cooperation between states and territories paved a path forward.
“The minister should retract this statement and retract these cuts,” he wrote on X.
“Our government has not and will not cooperate to support Catherine King’s cuts.”
In a separate X post, he wrote, “Our message to Catherine King: Treat Queensland more like Qantas and less like Qatar.”
Meanwhile, Victorian Premier Jacinta Allan said she expected federal funds from cancelled projects to be allocated to other infrastructure projects in the state.
“It is our expectation that not only do we, in a forward sense, get our fair share of infrastructure funding, [but] that every dollar from those projects remains here in Victoria,” she said.
NSW Premier Chris Minns also weighed in, saying he was “very concerned” about how the cut would impact Australia’s most populous state.
The state opposition said the premier should confront Prime Minister Anthony Albanese.
“We need a premier who will stand up to Canberra on issues like immigration and infrastructure,” Opposition Leader Mark Speakman said.
“Labor’s changes to infrastructure funding will see increased congestion and less safe roads, with regional NSW to be hit the hardest,” he said.
“These road projects are not only vital for improving the safety of regional roads, but essential if we are to improve national productivity in freight and logistics supply chains.”
King Says 400 Projects Expected to be Completed
Despite widespread concern, more than 400 ongoing projects are still expected to be completed or substantially developed over the next ten years, including the Torrens to Darlington North-South Corridor and the Gold Coast Faster Rail.The Melbourne Airport Rail Link, the Milton Ulladulla Bypass, and the Tasman Bridge are also safe, with no overall cut to the $120 billion infrastructure pipeline.
The government also guaranteed $27 billion for strategic freight and road safety corridor upgrades in regional Australia, including the Newell, Princes, and Bruce Highways.
Ms. King said delivery of these corridors would maximise return on investment between the states and Commonwealth.
“This approach will allow states and territories to more flexibly manage project delivery schedules according to their priorities,” she said.
