Media Archive / Federal Infrastructure Investment Cuts will Impact in NSW

Federal Infrastructure Investment Cuts will Impact in NSW

Urban Development Institute of Australia NSW is concerned that previously anticipated funding for major road, transport and freight investments under the Commonwealth’s Infrastructure Investment Program (IIP), have been cut as part of the review released this week.

“Many of projects listed for cancellation under the Review have the potential to play a significant role in unlocking new residential and industrial land supply and UDIA and our members are concerned this has occurred in the middle of national housing crisis,” said UDIA NSW CEO, Steve Mann.

Ahead of the review, the Australian Government committed to a ten-year, $120 billion infrastructure pipeline and ensuring that land transport infrastructure projects are nationally significant and nation-shaping.

The Commonwealth Government has confirmed in its review that it will adopt a policy of a 50/50 funding split between the Australian Government and State, Territory and Local Government), as the standard funding split for new projects.

While the Commonwealth Government will retain the flexibility to apply other funding splits supported by evidence, this is a significant shift from the current 80/20 split for projects already entered into with some states and local jurisdictions and will ultimately put further pressure on the NSW Government’s capacity to fund significant road and freight infrastructure.

UDIA is concerned that 82 projects across the Nation, including 17 in NSW will not receive Australian Government funding moving forwards.

“The funding cuts will directly affect 7 major projects in Western Sydney, some of which will directly impact the ability for workers, residents and tourists to access the soon to be completed Western Sydney (Nancy Bird-Walton) Airport. This a major setback for the delivery of employment lands in the aerotropolis precinct which is already behind schedule and struggling with due to uncertainty about the delivery of critical roads and regional stormwater infrastructure,” said Steve Mann.

Projects identified in Western Sydney for cancellation by the Commonwealth include:

  1. Commuter Car Park Upgrade – T1 North Shore, Northern and Western Line – Kingswood
  2. Commuter Car Park Upgrade – T1 North Shore, Northern and Western Line – St Marys
  3. Great Western Highway Upgrade Katoomba to Lithgow – Construction of East and West Sections
  4. M7-M12 Interchange Mulgoa Road
  5. Stage 2 – Glenmore Parkway to Jeanette Street, Stage 5A Blaikie Road to Jamison Road and Stage 5B Jamison Road to Union Road
  6. Remembrance Driveway Corridor Upgrade – Camden Council
  7. Western City Road Transport Network Development – Planning

“These infrastructure projects would have supported the delivery of thousands of homes and jobs for people in NSW and help the state deliver on its National Housing Accord targets over the next 5 years and beyond,” said Mr Mann.

In addition, the Federal Government has withdrawn project funding for faster rail between Newcastle, Central Coast and Sydney by eliminating funds to straighten tracks between Tuggerah and Wyong. There is still funding for the High Speed Rail Authority, but it unclear what, if any, future steps may be taken to improve rail travel times for the Hunter and Central Coast to Sydney.


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