ALGA analysis of the 2016-17 Federal Budget


Key points

Little in new funding announcements – most new announcements are re-prioritised funding that have already been allocated in previous Budgets. It is reasonable to expect that any significant project announcements will take place during the forthcoming election campaign.

  • Local government funding programs remain in place, with the most notable outcome being a $50 million annual increase for Roads to Recovery from 2019-20. Previously announced increases to programs, including Roads to Recovery and Black Spots are in this Budget.
  • There is a new focus on public transport, including re-focusing previously allocated roads funding to metro projects.
  • Additional, but unallocated, funding from the Asset Recycling Scheme remains.
  • $594 million in additional equity funding for the Australian Rail Track Corporation to acquire sufficient land to progress the Inland Rail Project.
  • $100 million of the $600 million Northern Australia Roads package will be provided in 2016-17.
  • A new $100 million Beef Roads Package, supporting the cattle industry in Northern Australia has been announced, with $35 million provided in this financial year.

Commonwealth funding for Local Roads in 2016-17

  • Roads to Recovery: $815.1 million
  • Identified Local Road Grants: $703.4 million
  • Bridge Renewal Programme: $80 million
  • Black Spots: $100 million

Total local government road funding allocation for jurisdictions in 2016-17 is set out in the table below ($m).

StateRoads to RecoveryIdentified local roads grants Bridges RenewalBlack SpotsTotal
TOTAL 815.1703.480.0100.01,698.5

Note: sum of the components may not add to the total due to rounding

Key announcements by jurisdiction

The Federal Government has allocated funding to the following in 2016-17:


  • $1.7 billion allocated to the Sydney Metro project
  • $78.3 million for Parramatta Light Rail
  • $167.3 million funding for four Regional Road Freight Corridor projects


  • $1.5 billion Victorian Infrastructure Package – conditional on matching State Government funds – including:
    • $500 million upgrade to the Monash Freeway
    • $350 million for the M80 Ring Road
    • $345 million toward a Rural and Regional Roads Package


  • Ongoing funding of the Bruce Highway upgrade project – $558.1 million this year
  • $493.4 million for the continued funding of the Toowoomba Second Range Crossing project
  • Provision of the final $100 million towards the Moreton Bay Rail Link


  • $490 million in additional funding to Western Australian to maintain GST relativity will be directed towards the Forrestfield Airport Link
  • Ongoing funding of the Northlink WA project of $205.6 million in 2016-17
  • $207.7 million in continued funding for Perth Freight Link


  • Ongoing funding of the North-South Corridor project with $320.8 million provided in 2016-17


  • $20.4 million of funding in 2016-17 for the ongoing the Freight Rail Revitalisation project
  • $7 million for the Brooker Highway project, to fast-track completion by mid-2017


  • $300,000 for the ACT Travel Time Information, with $250,000 provided in 2016-17


  • $23 million for the ongoing Northern Territory Roads package
  • $40.4 million in funding related to Asset Recycling, including the following:
    • Flood mitigation for Darwin and Katherine – $5.6 million
    • $1.3 million for the Tanami Road upgrade, and
    • Tiwi Island Road funding of $3.5 million.