Victorian infrastructure funding in Budget 2022-23

Although the Victorian government claims it has been duded in this year’s federal budget, the feds on the other hand say ample money has been allocated for Victoria where it is needed most, particularly for Victorian infrastructure.

The federal government says the Morrison‑Joyce Government’s has made record infrastructure investment, with over $3.3 billion committed to Victorian infrastructure pipeline in this week’s Federal Budget.

They say their government is continuing to invest in projects that create jobs, keep commuters and freight safe and moving, and drive economic growth.

“With investments in new and existing infrastructure projects in every state and territory, the Government’s national rolling 10‑year infrastructure investment pipeline will increase from $110 billion to over $120 billion, a new record.”

Key new Victorian infrastructure projects funded in Victoria in the 2022–23 Budget include:

  • $3.1 billion in new commitments to deliver the $3.6 billion Melbourne Intermodal Terminal Package:
    • $1.2 billion for the Beveridge Interstate Freight Terminal in Beveridge, taking the total investment to $1.62 billion;
    • $280 million for Road Connections, including Camerons Lane Interchange, to the Beveridge Interstate Freight Terminal;
    • $740 million for the Western Interstate Freight Terminal in Truganina
    • $920 million for the Outer Metropolitan Ring ‑ South Rail connection to the Western Interstate Freight Terminal
  • $109.5 million for the Mickleham Road Upgrade

The Budget also includes additional funding for existing Victorian infrastructure projects, including:

  • $45 million for the Ballarat to Ouyen – Future Priorities
  • $23.1 million for the Canterbury Road Upgrade

This brings the Coalition’s total infrastructure investment in Victoria since 2013 to more than $35.5 billion across nearly 300 road and rail infrastructure projects, with 99 projects having been completed in the period.

Expressing his sentiment in no uncertain terms, Deputy Premier and Minister of Education in Victoria James Merlino said the budget was deeply disappointing.

He said it was “deeply disappointing” that the state had been short-changed but he was not surprised.

“Victoria has been dudded,” he said.

“The Treasurer may come from Victoria but he’s not for Victoria and once again we’re seeing that in this year’s budget.”


Australian Government‑funded transport infrastructure projects that are currently under construction in Victoria are expected to support around 11,500 jobs over the life of the projects, with the next wave of major projects such as the Melbourne Airport Rail Link to commence construction this year.

Prime Minister Scott Morrison said the Government’s record infrastructure investment was keeping Australians moving and supporting thousands of local jobs across the country.

“A strong economy means a stronger future,” the Prime Minister said.

“Continuing to provide record future funding for road and rail projects is a key part of our economic plan for the long term to keep our economy strong.

“Our investment in these infrastructure projects will support more than 6,500 direct and indirect jobs in Victoria over the construction life of these projects, providing certainty and security for businesses and communities across the State.”

Treasurer Josh Frydenberg said infrastructure is a key pillar of our economic plan to grow the economy and get more Australians into work.

“With the unemployment rate already at an equal 48 year low, the measures in this Budget will create an additional 40,000 jobs across Australia, building on our world leading economic recovery,” the Treasurer said.

“By enhancing transport connectivity, we’re strengthening our supply chains against challenges such as COVID‑related disruptions and the impact of natural disasters. This gives businesses and consumers the confidence and certainty they need in uncertain times.”

Also read: Joint Business Support Package for Victoria

Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development Barnaby Joyce said the Government is building the infrastructure that will make our nation and economy stronger.

“As an exporting nation, Australia relies on our commodities reaching international markets to generate the wealth that underpins our standard of living and prosperity,” the Deputy Prime Minister said.

“We are building Inland Rail to better connect our exporting industries with their customers, so that our nation can continue to earn the money that pays for the services Australians need and deserve.

“Our commitment to delivering new intermodal terminals in Melbourne will ensure we have the right infrastructure in place at the end of the line to get these products to their local and global destinations.”

Federal Minister for Communications, Urban Infrastructure, Cities and the Arts Paul Fletcher said the Government’s significant investment in intermodal terminals at Beveridge and Truganina would help meet the forecasted increase in freight over the coming decades, especially in Melbourne with the planned closure of Dynon terminal in 2031.

“Victoria is the freight and logistics capital of Australia. To maintain this advantage, the delivery of two modern and advanced intermodal terminals in the north and west of Melbourne to support Inland Rail, as well as east‑west freight rail flows, is a priority,” Minister Fletcher said.

“Our investment in two terminals and connecting infrastructure will help remove around 5,500 truck movements per day from metropolitan arterial roads in Melbourne in the next 15 years, significantly reducing congestion and emissions across the CBD, and improving safety.

“Our Government has a strong track record in delivering infrastructure that improves connections, reduces congestion and helps keep Australians moving, particularly across our fast growing urban centres.”

For more information on investments in Victoria, visit the Infrastructure Investment Program website.

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