Federal Government Cancels Funding On 50 Infrastructure Projects
Kanebridge News
Share Button

Federal Government Cancels Funding On 50 Infrastructure Projects

Projects have been canned in every state and territory except the Northern Territory

By Bronwyn Allen
Tue, Nov 21, 2023 10:18amGrey Clock 3 min

The Federal Government has cancelled funding for 50 infrastructure projects across Australia after an independent review of the country’s 10-year $120 billion infrastructure pipeline found the current program was undeliverable.

The Albanese Government announced the review in May as part of its 2023-24 Federal Budget due to concerns that the projects would cost a lot more in today’s inflationary economy. The Federal Government says $120 billion will still be spent over the next decade but the number of projects in the Infrastructure Investment Program (IIF) is now unrealistic, and many lack overall merit.

The review’s authors, Reece Waldock AM, Clare Gardiner-Barnes and Mr Mike Mrdak AO, who all have extensive expertise in land transport infrastructure, were scathing in their assessment of funding allocations. They wrote: “There are projects in the IIP that do not demonstrate merit, lack any national strategic rationale and do not meet the Australian Government’s national investment priorities. In many cases these projects are also at high risk of further cost pressures and/or delays. A number of projects were allocated a commitment of Australian Government funding too early in their planning process and before detailed planning and credible design and costing were undertaken.”

In a statement, Infrastructure and Transport Minister Catherine King accused the previous government of “economic vandalism” and committing spending that was focused on electoral rather than national benefit. She said the number of projects listed under the IIF had ballooned from approximately 150 in 2012-13 to nearly 800 by 2022.

Ms King said: “The review has found an estimated $33 billion in nine cost pressures across all projects in the program with a high risk that that figure would increase, and for those not currently under construction that figure, the report says, is around $14.2 billion.”

The review recommended that 82 projects not yet under construction should be cancelled with their allocated funding shifted to other projects. The government has taken the axe to 50, with 31 combined into other projects or ‘corridors’ of infrastructure works.

 

Cancelled projects

 

NSW & ACT

Commuter car park upgrades at Kingswood, St Marys and Woy Woy; the M7-M12 Interchange; the Northern NSW Inland Port at Narrabri; the Southern Connector Road at Jindabyne; and the Inner Canberra corridor planning package.

 

VIC

The Frankston to Baxter rail upgrade; the Geelong Fast Rail; stage 1 of the Goulburn Valley Highway to Shepparton bypass; and the Mornington Peninsula Freeway upgrade.

 

TAS

The Old Surrey Road/Massy-Greene Drive upgrade.

 

SA

The Hahndorf Township improvements and access upgrade; the Old Belair Road upgrade at Mitcham; and the Truro Bypass.

 

WA

The Great Southern Secondary Freight Network; the Marble Bar Road upgrade; the Moorine Rock to Mt Holland road upgrades; and stages 1 and 2 of the Pinjarra Heavy Haulage Deviation.

 

QLD

Commuter car parks at Beenleigh and Loganlea; the Kenmore roundabout upgrade; the Mooloolaba River Interchange upgrade; and the New England Highway upgrade at Cabarlah.

Ms King also announced that the Federal Government would seek to provide 50:50 funding with the states and territories on future projects, rather than the 100% or 80:20 default arrangements in place now. She said this would ensure shared accountability and end “the perverse incentives that saw the Federal Coalition throw money at projects that states did not want to build”.

The overhaul of the IIP follows formal advice from the International Monetary Fund last month that the Australian Government should reduce public project spending to help ease inflation. Infrastructure projects add demand to the economy in terms of labour and materials, which conflicts with the Reserve Bank’s goal of tamping down demand to reduce inflation. The RBA says inflation is still too high and not going down fast enough, which is why it raised the cash rate again this month.

The IMF said: “The Commonwealth Government and state and territory governments should implement public investment projects at a more measured and coordinated pace, given supply constraints, to alleviate inflationary pressures and support the RBA’s disinflation efforts. Otherwise, interest rates would have to be even higher, putting the burden of adjustment disproportionately on mortgage holders.”

Last week, US inflation data came in much lower, which could mean the end to rate hikes in the world’s biggest economy. Headline inflation fell to 3.2% for the year to October, down from 3.7% over the previous two months. Core inflation, which excludes volatile items like energy, fell to 4%, which is its lowest level in two years.



MOST POPULAR
11 ACRES ROAD, KELLYVILLE, NSW

This stylish family home combines a classic palette and finishes with a flexible floorplan

35 North Street Windsor

Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.

Related Stories
Property
Winning neighbourhoods where home values rose most in FY24
By Bronwyn Allen 18/07/2024
Property
Jennifer Lopez and Ben Affleck Officially List Their Massive Beverly Hills Mansion for $68 Million
By BECKIE STRUM 12/07/2024
Property
The faster pathway to building wealth is no longer how much you earn, investors believe
By Bronwyn Allen 11/07/2024
Winning neighbourhoods where home values rose most in FY24

We reveal the No. 1 areas for price growth in each capital city

By Bronwyn Allen
Thu, Jul 18, 2024 3 min

Home values across Australia rose by a median 8 percent in FY24, delivering the equivalent of $59,000 in new capital growth to the two-thirds of the population that owns a home, according to CoreLogic data. Investors received total returns of 12.2 percent over the year, including capital gains and gross rental income.

Very tight supply and demand in most capital cities except Melbourne and Hobart was a significant driver of the capital growth, with the smaller and more affordable capital cities of Perth, Brisbane and Adelaide experiencing the most price appreciation over the year. A lack of properties for sale trumped the usual dampening effect of higher interest rates.

As usual, some areas outperformed their city’s median growth benchmark. Here are the top SA3 areas for capital growth in each capital city of Australia in FY24. SA3 areas are large suburbs, or districts incorporating clusters of suburbs, with more than 20,000 residents.

 

Sydney

Home values across Sydney rose by a median 6.3 percent in FY24. The No. 1 area for growth was Mount Druitt. Its median value rose by 13.96 percent to $859,939. Mount Druitt is located 33km west of the CBD. It incorporates the suburbs of Mount Druitt, Ropes Crossing, Whalan and Minchinbury. The Mount Druitt community is very multicultural with almost one in two residents born overseas. It is home to many young families, with the median age of residents being 33 compared to the NSW median of 39.

 

Melbourne

Home values across Melbourne rose by a median 1.3 percent in FY24. The top area for capital growth was Moreland-North with 4.71 percent growth. This took the district’s median home value to $746,488. Moreland-North includes the suburbs of Hadfield, Pascoe Vale and Glenroy. It’s a multicultural community with a particularly large contingent of residents with Italian ancestry. One or both parents of 66 percent of residents were born overseas, according to the 2021 Census.

 

Brisbane

Home values across Brisbane rose by a median 15.8 percent in FY24. The No. 1 area for growth was Springwood-Kingston in Logan City. Its median value swelled by 25.55 percent to $710,569. Springwood-Kingston is approximately 22km south of Brisbane CBD. It incorporates the suburbs of Springwood, Kingston, Rochedale South and Slacks Creek. It is a multicultural community with one or both parents of 55 percent of the residents born overseas, according to the 2021 Census. More than 15 percent of residents have Irish or Scottish ancestry.

 

Adelaide

Home values across Adelaide rose by a median 15.4 percent in FY24. The best area for capital growth was Playford in Playford City. Its median value soared by 19.94 percent to $530,991. Playford is approximately 40km north of Adelaide. It incorporates the suburbs of Elizabeth Downs, Elizabeth Grove, Angle Vale and Virginia. It is home to many young people under the age of 40. The median age of residents is 33 compared to the state median of 41.

 

Perth 

Home values across Perth rose by a median 23.6 percent in FY24. The No. 1 area for growth was Kwinana in Kwinana City. Its median value skyrocketed by 33.19 percent to $618,925. Kwinana is approximately 37km south of Perth CBD. It includes the suburbs of Leda, Medina, Casuarina and Mandogalup. Henderson Naval Base is located here and there is a significant community of servicemen and ex-servicemen living in the area. It is home to many young families, with the median age of residents being 33 compared to the state median of 38.

 

Canberra

Home values across the nation’s capital rose by a median 2.2 percent in FY24. The best area for capital growth was Weston Creek. Its median value rose by 5.24 percent to $937,740. Weston Creek is approximately 13km south-west of the CBD. It includes the suburbs of Weston Creek, Holder, Duffy, Fisher and Chapman. Approximately 43 percent of residents have a bachelor’s degree, which is on par with the ACT median but much higher than the national median of 26 percent. Household incomes are about 35 percent higher than the national median. Almost one in five residents work in government administration jobs.

 

Hobart

Home values across Hobart fell 0.1 percent in FY24. The top performing area for capital gains was Sorell-Dodges Ferry with 2.78 percent growth. This took the area’s median home value to $615,973. Sorell-Dodges Ferry is approximately 25km north-west of Hobart. It incorporates the suburbs of Richmond, Sorell, Dodges Ferry, Carlton and Primrose Sands. The area has a large community of baby boomers and retirees, with the median age of residents being 43 compared to the Australian median of 38.

 

Darwin

Home values across Darwin rose by a median 2.4 percent in FY24. The No. 1 area for growth was Litchfield. Its median value moved 3.21 higher to $672,003. Litchfield is about 37km south-east of Darwin and includes the suburbs of Humpty Doo, Acacia Hills and Southport.  It has a high proportion of middle-aged residents, with the median age being 39 compared to the territory median of 33. About 12 percent of residents are Indigenous Australians. The biggest industries are government administration and defence. Median household incomes are about 35 percent higher than the national median.

 

MOST POPULAR
11 ACRES ROAD, KELLYVILLE, NSW

This stylish family home combines a classic palette and finishes with a flexible floorplan

35 North Street Windsor

Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.

Related Stories
Money
Is ‘Rizz’ the Secret to Getting Ahead at Work?
By RACHEL FEINTZEIG 23/07/2024
Money
The Crazy Economics of the World’s Most Coveted Handbag
By CAROL RYAN 24/06/2024
Money
Finding LGBTQ-Focused Investments Can Be Difficult. Here’s Where to Begin.
By ROB CSERNYIK 26/06/2024
0
    Your Cart
    Your cart is emptyReturn to Shop