Budget cracked: State-by-state review of the $15.2b infrastructure spend

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With billions of dollars being poured into infrastructure projects, both existing and new projects are getting boosts from the federal budget.

The 2021-22 Budget released last night promised an additional $15.2 billion in new commitments to infrastructure projects from the federal government, supporting an estimated 30,000 jobs across Australia.

This, as Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development Michael McCormack clarified, is in addition to the $110 billion ongoing federal commitment to the 10-year infrastructure pipeline.

Apart from fresh injections into new and existing projects, adding up to over $12 billion, the budget allocates an additional $1.0 billion for the now $3.0 billion Road Safety Program to install critical road safety upgrades across all states and territories.

An additional $1.0 billion has been injected into the now $2.5 billion Local Roads and Community Infrastructure Program, to deliver the local projects that matter to communities, while stimulating economies across the nation. This funding is estimated to support around 3,500 jobs, taking the total jobs supported across the nation by the Local Roads and Community Infrastructure Program to around 9,000.

A further $40 million over two years is being invested in South Australian Local Roads Supplementary Funding, which will improve road safety and help ensure a lower road toll on local roads in South Australia.

An additional $28.2 million is also being provided to extend the Stronger Communities Programme, which provides grants of between $2,500 and $20,000 across the country to community organisations and local governments for small capital projects that deliver social benefits for local communities.

Building water infrastructure is another part covered under the budget, with investments up to a further $258.0 million, including up to $160 million through the National Water Grid Connections pathway, from the $3.5 billion National Water Grid Fund towards the construction of new and augmented water infrastructure projects, building a more resilient and secure Australia.

Here’s a breakdown of each state’s share of additional fundings for key existing or new infrastructure projects:

New South Wales

In New South Wales, of the total $3.02 billion funding, $2.03 billion is going towards the Great Western Highway Upgrade, between Katoomba to Lithgow, which will see construction on the east and west sections of the highway.

According to Paul Fletcher, Minister for Communications, Urban Infrastructure, Cities and the Arts, investments into key pinch points such as the $87.5 million M5 Motorway to Moorebank Avenue and Hume Highway Intersection Upgrade will complement works along key commuter corridors.

This includes funding towards the $240 million Mount Ousley Interchange near Wollongong.

New NSW projects will receive $2.985 billion from the budget, with existing projects receiving additional $39.1 million. Existing projects falling under the Roads of Strategic Importance (ROSI) will receive $197 million.

South Australia

South Australia, which is receiving $3.2 billion from the federal government’s budget, will fund $2.6 billion towards the North to South Corridor between Darlington to Anzac Highway which will reduce congestion.

An additional $161.6 million will go towards the Truro Bypass with $148 million used to fund the stage two duplication of the Augusta Highway, both targeted at improving road safety.

“We are committing $60 million in additional funding for the Gawler Rail Line Electrification and $3.1 million in additional funding for Goodwood and Torrens Junctions,” said Fletcher.

According to Simon Birmingham, Minister for Finance, budget funding will also support projects in regional SA such as the APY Lands, including the Main Access Road Upgrade between Stuart Highway and Pukatja.

New projects in SA will receive $3.02 billion in federal government funding with existing projects receiving additional $166.7 million.


Victoria’s $2.997 billion budget will see $2.0 billion go towards the Melbourne Intermodal Terminal that will impact how freight transport across Victoria.

According to Treasurer Josh Frydenberg, the $2 billion investment could potentially take 5,500 trucks off Melbourne’s roads every day.

“An intermodal terminal in Melbourne will help to boost the productivity of the nation by helping businesses get their products to domestic and international markets faster following the completion of inland rail,” said Frydenberg.

An additional $380 million will fund the Pakenham Roads Upgrade with $250 million being put towards the Monash Roads Upgrade. According to Fletcher, investments into these ‘pinch points’ will help improve traffic flow and provide more efficient, integrated delivery.

New projects in Victoria will receive $2.729 billion in budget funding with existing projects receiving additional $267.7 million funding, and ROSI projects receiving $91.5 million.


In Queensland, of the $1.6 billion invested, $400 million will be put into both the Inland Freight Route Upgrade from Mungindi to Charters Towers and the Bruce Highway Upgrades.

Investment into the Inland Freight Route, according to McCormack, will help increase productivity throughout Queensland and enhance transport connectivity, increasing economic growth.

“The Australian Government will continue to invest in the Queensland economy in the coming years, through projects such as $178.1 million for capacity upgrades along the Gold Coast Rail Line from Kuraby to Beenleigh and $10m for the Caboolture – Bribie Island Road Upgrade,” added Fletcher.

New projects in Queensland will receive $1.439 billion in budget funding with existing projects receiving an additional $151.6 million funding.

Western Australia

In Western Australia, a total of $1.3 billion new funding will include $1.07 billion towards new projects, including a $237.5 million commitment to METRONET towards grade separation and elevation of associated stations, as well as a $200m for Great Eastern Highway Upgrades between Coates Gully, Walgoolan to Southern Cross and Ghooli to Benari.

Federal government commitment to existing projects will see $221.6 million injected into the state, including $110 million for METRONET’s Byford extension project.

Northern Territory

Of the $323.9 million funded to the Northern Territory, upgrades on on Norther Territory gas industry roads, including  expansion of the Beetaloo Basin will receive $173.6 million of the funding. A total of $150 million will go towards the second phase of the Northern Territory National Highway Upgrades.

New projects in NT will receive $323.9 million in budget funding with existing projects receiving $33 million.


The Australian Capital Territory is set to received $167.3 million from the 2021-22 budget, which includes $161.5 million in new projects and $5.8 million as additional funding to existing projects. Of the new project fundings, $132 million will be towards the stage-two of Canberra light rail project.


Tasmania is set to receive $322.6 million, with $80 million funding the Tasmania roads Package as part of the Highway Safety and Freight Efficiency Upgrades Package. Of this, $48 million will go towards the Algona Roads Grade Separated Interchange and Duplication of the Kingston Bypass; with $44 million put towards upgrading the South Arm Road on Rokeby Road.

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