Infrastructure

In 2016‑17, the Commonwealth will provide funding of $9.2 billion to support State infrastructure services, as detailed in Table 2.9.

(a) Additional funding for these programmes is included in the Infrastructure Growth Package — New Investments.

(b) Figures represent expenses incurred against prepayments made to the States in prior years.

National Partnership payments for infrastructure

Infrastructure Investment Programme

The Commonwealth is providing funding for road and rail infrastructure through the Infrastructure Investment Programme under the National Partnership on Land Transport Infrastructure Projects. This National Partnership assists economic and social development regionally and nationally by providing funding to improve the performance of land transport infrastructure.

A portion of Commonwealth funding for road infrastructure is sourced from the additional net revenue received from the reintroduction of biannual indexation of excise and excise‑equivalent customs duty for all fuels (except aviation fuels), as announced in the 2014‑15 Budget.

The Infrastructure Investment Programme comprises several components, all of which are detailed in the tables below.

(a) An additional $200 million in funding (during the 2015‑16 to 2016‑17 period) is included in the Infrastructure Growth Package — New Investments.

The Commonwealth is providing funding for Black Spot projects to improve the safety of road sites which have been identified as high risk areas for serious crashes. Funding is aimed at improving sites that have a record of at least two accidents involving casualties over a five year period, and can demonstrate a positive benefit to cost ratio.

(a) Some amounts in each year remain unallocated. These amounts have been notionally allocated to all States on an equal per capita basis.

The Commonwealth is providing funding to upgrade bridges across the nation. This programme renews and replaces bridges serving local communities, and facilitates higher productivity vehicle access.

(a) State allocations have not yet been determined. These amounts have been notionally allocated to all participating States on an equal per capita basis.

The Commonwealth will provide funding to Queensland, Western Australia and the Northern Territory for infrastructure projects that will improve the resilience and productivity of the northern cattle supply chains. Under the White Paper on Developing Northern Australia, funding has been committed for targeted investments that support roads in Northern Australia that are used for transporting cattle.

(a) State allocations have not yet been determined. These amounts have been notionally allocated to all participating States on an equal per capita basis.

The Commonwealth will provide funding to Queensland, Western Australia and the Northern Territory for infrastructure projects that are essential to the movement of people and freight, in order to support economic development in the region. Under the White Paper on Developing Northern Australia, funding has been committed to priority road projects in Northern Australia, including inter‑jurisdictional links and roads connecting communities and regional towns to ports and airports.

(a) Some amounts in each year remain unallocated. These amounts have been notionally allocated to all States on an equal per capita basis.

The Commonwealth is contributing to the safety and productivity of heavy vehicles by providing funding for projects that improve the safety of the road environment, enhance the capacity of existing roads and improve connections to freight networks.

(a) Figures in this table represent expenses against prepayments made to the States in 2005‑06.

The Commonwealth provided a one‑off supplementary payment of $1.8 billion to the States in 2005‑06 to complete major works packages. Works included the Pacific and Hume Highways in New South Wales, the Bruce Highway in Queensland, the Eyre, Great Eastern and Great Northern Highways in Western Australia, the Sturt Highway in South Australia, the East Tamar Highway in Tasmania and the Victoria Highway in the Northern Territory. The table above provides a profile of state expenditure against this supplementary payment.

Investment

(a) An additional $2.2 billion in funding (during the 2014‑15 to 2018‑19 period) is included in the Infrastructure Growth Package — New Investments.

(b) Some amounts in 2016‑17 and beyond remain unallocated. These amounts have been notionally allocated to all States on an equal per capita basis.

(a) The supplementary component represents expenses against prepayments made to local governments in 2006‑07.

The Commonwealth is providing funding for the Investment components of the Infrastructure Investment Programme. This programme targets nationally significant projects which will improve the efficiency and safety of the national land transport network. Funding is provided for road and rail construction projects and network maintenance, including transport development, innovation projects and grants to land transport research entities.

$1.5 billion in funding that was previously paid to Victoria for construction of the East West Link road project will be reallocated to a range of other infrastructure projects in Victoria under the Infrastructure Investment Programme. This redirection of funding does not affect the Government's commitment to the East West Link project. The Government remains committed to provide $3.0 billion to a future Victorian Government that is willing to build the East West Link.

The measures taken in the 2016‑17 Budget as part of the Infrastructure Investment Programme are discussed in Budget Paper No. 2, Budget Measures 2016‑17.

(a) An additional $350 million in funding (in 2015‑16) is included in the Infrastructure Growth Package — New Investments.

(b) These figures include payments direct to local governments.

The Commonwealth is providing funding for the Roads to Recovery programme for road construction and maintenance projects at a local level. Decisions on projects to be funded are made locally and reported to the Commonwealth.

Infrastructure Growth Package

The Commonwealth will establish an Asset Recycling Fund (ARF) to provide funding for additional investment in high quality economic infrastructure under the Infrastructure Growth Package. Until such time as the ARF is established, the Government will continue to deliver on its commitments under the Infrastructure Growth Package through existing legislative and appropriation mechanisms.

The three components of the Infrastructure Growth Package — the Asset Recycling Initiative, New Investments and the Western Sydney Infrastructure Plan — are detailed in the tables below.

(a) State allocations have not yet been determined.

The Commonwealth is providing financial incentives under the National Partnership on Asset Recycling to encourage States to divest assets and reinvest the proceeds into additional productive infrastructure. Funding is allocated to specific projects on a first come, first served basis, as projects are agreed between the Commonwealth and individual States.

The measure taken in the 2016‑17 Budget as part of the National Partnership on Asset Recycling is discussed in Budget Paper No. 2, Budget Measures 2016‑17.

(a) These figures include payments direct to local governments.

Under the New Investments component of the Infrastructure Growth Package, the Commonwealth is providing additional funding to expedite investment in high quality economic infrastructure. This includes additional funding for significant road projects, the National Highway Upgrade Programme, as well as Black Spot projects and the Roads to Recovery programme.

Under the Western Sydney Infrastructure Plan, the Commonwealth is providing $2.9 billion in additional funding over 10 years to enhance capacity and improve transport infrastructure in Sydney's western suburbs, including for the development of an airport at Badgerys Creek.

Other National Partnership payments

The Building Australia Fund rail and road components are supporting future economic growth by improving the quality and efficiency of Australia's transport networks to increase city liveability and sustainability in the context of a growing population.

The Commonwealth is providing funding for the National Partnership for the Centenary of Canberra — Constitution Avenue Upgrade to assist with the redevelopment of the Constitution Avenue road corridor.

The Commonwealth will provide funding for the National Partnership on infrastructure projects in Western Australia. Funding in 2015‑16 under this National Partnership will be allocated to the development of the Forrestfield‑Airport Link.

A new spending measure associated with the National Partnership on infrastructure projects in Western Australia is discussed in Budget Paper No. 2, Budget Measures 2016‑17.

The Commonwealth is providing funding under the Interstate Road Transport Act 1985 that is equal to the total revenue received from heavy vehicle registrations collected from the Federal Interstate Registration Scheme. This funding is spent by the States on the maintenance and upkeep of roads that are used by heavy vehicles.

(a) These figures include payments direct to local governments.

The Commonwealth is providing funding for two projects which will support economic diversification in the Latrobe Valley in Victoria: the Moe Rail revitalisation project and the Warragul Station precinct upgrade project.

The Commonwealth is providing funding to Basin States to support economic diversification in regional communities likely to be affected by the implementation of the Murray Darling Basin Plan. Projects will encourage sustainable economic development through joint government, private and community sector investment in regional communities.

(a) These figures include payments direct to local governments.

The Commonwealth is providing funding to targeted drought‑affected regions to support local infrastructure projects that provide employment for people whose work opportunities have been impacted by drought. Funding will be provided to drought‑declared local government areas for projects that stimulate local community spending, use local resources, businesses and suppliers, or provide long‑lasting benefits to communities and the agricultural industries on which they depend.