Roads & Infrastructure magazine provides its review of the 2025/26 Federal Budget, which includes $17.1 billion in major infrastructure investments across Australia.
This year’s budget further backs the Federal Government’s 10-year, $120 billion infrastructure pipeline for nationally significant projects, with a specific focus on road infrastructure.
In Queensland, $7.2 billion has been committed for safety upgrades on the Bruce Highway. This is in top of a further $200 million helping to ensure the delivery of the Rockhampton Ring Road, as well as a further $70 million helping to seal the remaining 11 kilometres of unsealed pavement on the Kennedy Developmental Road.
In New South Wales, over $2.3 billion has been committed for critical infrastructure upgrades in the growing Western Sydney region, including $1 billion to preserve the corridor for the Southwest Sydney Rail Extension and $500 million to upgrade Fifteenth Avenue.
A further $465 million for New South Wales to plan for regional projects, including $250 million to upgrade Mona Vale Road and $115 million to reduce travel times on Terrigal Drive.
In Victoria, $2 billion will go to upgrading Sunshine Station, an important project to deliver Melbourne Airport its first rail link. $1.1 billion will go to supporting upgrades along the Western Freeway in Victoria, with $1 billion also going to the Road Blitz, a new package of works to increase capacity and improve efficiency in Melbourne’s suburbs and surrounds.
In Western Australia, $350 million has been committed for the Westport – Kwinana Freeway Upgrades. Tasmania’s Arthur Highway will receive $200 million for upgrades, with South Australia set to receive $125 million for the Curtis Road Level Crossing Removal.
South Australia has will receive funding for three key projects, including $525 million for the High Productivity Vehicle Network (HPVN), $125 million for the Curtis Road Level Crossing Removal and $40 million for Main South Road upgrade – Myponga to Yankalilla.
The nation’s capital will receive $50 million for the Monaro Highway in the ACT.
Funding has also focused on increasing road safety and productivity, with funding into the Roads to Recovery Program to progressively rise to $1 billion per year, and Black Spot Program funding will reach $150 million per year.
At least $200 million is also available each year under the new Safer Local Roads and Infrastructure program, to address current and emerging priorities in road infrastructure.
Related stories:
- Milestone reached with 85th level crossing removal
- Another $258M announced for NT highways
- More investment for north Melbourne infrastructure
Industry reaction
Infrastructure Partnerships Australia CEO Adrian Dwyer said the Federal Government has delivered few changes for the infrastructure sector.
“The fiscal realities of this Budget, and the political demand to meet immediate cost of living relief, means there is little for those hoping to arrest the national decline in transport infrastructure investment.
“We saw in the 2024-25 Budget, that year-on-year growth in infrastructure expenditure was now in the rear view and that trajectory has continued,” Dwyer said.
Australian Constructors Association CEO Jon Davies said real change won’t come from another budget focused on short-term cost-of-living measures, but from a plan that tackles productivity at its core.
“Band-aid solutions just push the problem further down the road. We need big-picture reforms that make construction more efficient, lower costs and ease pressure on households,” Davies said.
“Closing this productivity gap would ease labour shortages and reduce building costs.”
Ehssan Veiszadeh, Chief Executive of Roads Australia reiterated the organisation’s calls for nationwide reform to address rigid government procurement processes and design standards, which are hampering the adoption of innovation in the transport sector.
“Australia needs a long-term plan for the future of our transport system, supported by a continued focus on supporting industry innovation and addressing the construction sector’s long-standing productivity challenges,” Veiszadeh said.
“In these challenging economic times, it’s more important than ever that government embrace the opportunity to unlock innovation, deliver better value for our growing communities and support a sustainable infrastructure sector.”
ARA (Australasian Railway Association) CEO Caroline Wilkie welcomed $3 billion for new rail projects in the Federal Budget 2025-26, as part a total $17.1 billion investment in new and existing transport infrastructure projects.
“These funding commitments confirm what we already know – that investment in rail delivers huge economic, environmental and social benefits, as we have seen with the successful Sydney Metro,” Wilkie said.
“Investment in major rail projects future-proofs communities along the rail corridor. It supports more affordable housing, takes thousands of cars off the road and connects people to more job opportunities, health and education precincts.”
To view the full Budget summary, click here.
