The Australian Federal Government has released its Infrastructure Policy Statement to guide further investment in national infrastructure projects.
The statement redefines “nationally significant” infrastructure and commits the Albanese Government to investing in these projects rather than projects of “electoral benefit” according to a press release from the Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King.
“The Albanese Government will invest in the projects that only the Commonwealth can – those which shape our cities, our regions and our nation,” the press release said. “Together with the states and territories – and with clear priorities and proper planning – we will build a better future for all Australians.”
To be considered “nationally significant”, future projects must align with two of the following four characteristics: Australian Government contribution of at least $250 million; alignment with Government priorities as articulated in the Infrastructure Policy Statement; situated on or connected to the National Land Transport Network and other key freight routes; and supporting other emerging or broader national priorities.
According to the press release, the main driver for the change came after the Infrastructure Investment Program was reviewed, which found that the amount of infrastructure programs increased from 150 projects to nearly 800 in just under a decade. The purpose of the review was to streamline the effectiveness of the Commonwealth’s $120 billion infrastructure spend under the government’s three top priorities: productivity, liveability, and sustainability.
“We (the federal government) are reshaping how the Commonwealth funds projects, returning to a preference of 50:50 funding with the states and territories for future investments,” the press release said, “so both levels of government carry an equal share of both the benefits and the risks.”
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The strategic review of the Infrastructure Investment Program was announced as part of the October 22-23 budget, with the goal of laying the foundation for a more sustainable, credible, nation-building Infrastructure Investment Program.
The new Infrastructure Policy Statement was released on the 14th of November.