Regional and rural infrastructure budgets get a boost -

East Gippsland Rail Trail upgrades are on the horizon, image courtesy of the East Gippsland Rail Trail.

With the 2021-22 federal budget recognising the need to support affected regional areas within Australia, these communities will receive a multitude of investments– from funding towards the agriculture sector and regional tourism to water infrastructure and road upgrades.

“Regional areas have been through it all in the past year-and-a-half … drought, fires, floods and the health and economic impacts of a global pandemic,” said Michael McCormack, Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development at a speech on May 13.

“These events have challenged regional people, disrupted key regional industries and heaped great pressure on regional communities.”

Local communities are set to benefit from the budget through the extensions of community grant programs.

One such program is the Building Better Regions Fund which will receive an additional $250 million invested into it, as part of the 2021-22 budget. This builds on more than $1.0 billion already invested under the federal budget from the fund.

An additional $1 billion from the 2021-22 budget will go into the Local Roads and Community Infrastructure Program, with the completion of past projects such as the duplication of the Pacific Highway and Bruce Highway upgrade improving road safety.

There is also a big focus on road safety. The 2021-22 budget delivers an extra $1 billion for what becomes the $3 billion Road Safety Program.

But Federal Treasurer Josh Frydenberg warned the new money came with conditions.

“Funding for these shovel-ready projects will be provided on a use it or lose it basis,” he said.

The Regional Recovery Partnerships program will also receive funding, with investments put into projects that will support some of the areas hardest hit by the COVID-19 pandemic.

The project aims to bring together different government levels to support these 10 regions. According to McCormack, the program has already seen a range of partnerships, resulting in project such as the East Gippsland Rail Trail and Gladstone’s upgraded port and waterfront.

Freight lines and transport infrastructure will also receive funding with the Inland Rail expected to inject more than $18 billion into Australia’s GDP during construction and across its 50 years of operation.

The Australian Government has also brought forward 50 per cent of the 2021-22 Financial Assistance Grant funding which will see more than $1.3 billion invested into local councils. This funding will support recovery from droughts, bushfires, floods and impacts from the COVID-19 pandemic.

Chris Melham, chief executive officer of Civil Contractors Federation (CCF) National welcomed the federal budget announcements in a statement on May 14.

“Certainly regional Australia is a big beneficiary of the infrastructure budget…,” said Melham, who said the budget announcements were consistent with the key recommendations provided by CCF National in its pre-budget submission.

“This $110 billion of infrastructure is supporting Australians right throughout the economy—and certainly, as I say again, in those country areas,” Melham concluded.