Fact sheet 3: Road funding
The Budget announced a total of $2.6 billion to be made available in 2006-07 for transport infrastructure with additional funds also brought forward to 2005-2006 for transport projects, bringing the total made available in the budget under the AusLink program to $5.0 billion. Key arterial roads in all Sates and Territories including Hume, Bruce, and Pacific Highways will benefit for accelerated funding, and an additional $270.0 million has been made available to the Australian Rail Track Corporation to improve the performance of the Melbourne-Sydney-Brisbane corridor
A total breakdown of AusLink spending on transport infrastructure, along with other transport funding programs is at table 6.1
| AusLink funding programs | NSW $m | Vic $m | Qld $m | WA $m | SA $m | Tas $m | NT $m | ACT $m | Other $m | Total $m |
|---|---|---|---|---|---|---|---|---|---|---|
| Total 2006-07 | 875.1 | 517.5 | 559.8 | 268 | 167.4 | 77.3 | 48.3 | 22.7 | 46.2 | $2,582.30 |
| AusLink Investment Programme | 595.6 | 293.3 | 388.5 | 137 | 94.9 | 26.6 | 24.3 | 0.5 | 46.1 | $1,606.80 |
| AusLink Black Spot Programme | 14.3 | 10.4 | 8.9 | 5 | 3.5 | 1.1 | 0.7 | 0.6 | - | 44.5 |
| AusLink Strategic Regional Roads | 30.1 | 10 | 3.3 | 2.3 | 0 | 12.3 | 2.3 | 0 | - | 60.3 |
| AusLink Roads to Recovery | 85.6 | 62.5 | 62.5 | 45 | 27.7 | 10 | 9 | 5 | 0.2 | 307.5 |
| Total AusLink Programme | 725.6 | 376.3 | 463.3 | 189.3 | 126.1 | 50 | 36.2 | 6.1 | 46.2 | $2,019.10 |
| Upgrade of the Main line Interstate Railway Track | - | 20 | - | - | - | - | - | - | - | 20 |
| Additional funding for SA local roads | - | - | - | - | 13 | - | - | - | - | 13 |
| Federation Fund | - | 15 | - | - | - | - | - | - | - | 15 |
| Untied Local Road Grants | 149.5 | 106.2 | 96.5 | 78.8 | 28.3 | 27.3 | 12.1 | 16.5 | - | 515.2 |
Funding for Local Roads
The Budget provides for a one-off grant for local roads as a supplement to the Roads to Recovery Program. The funds will be made available in 2005-06. Roads Minister Jim Lloyd has informed councils that the extra injection of money stems from the Australian Government's awareness "of the pressures facing local government in providing adequate services to the people and communities for which they are responsible". Councils will be required to spend the funds by 30 June 2009 but are able to spend the funds immediately in cases where they have eligible projects ready to proceed. The additional funding represents a boost of 25 percent to the total Roads to Recovery Two program and each council will receive a grant which equates to one-quarter of their total program entitlement.
Apart from this additional allocation which will be paid to councils before June 2006, ongoing funding will be provided under the Roads to Recovery (R2R) Program in 2006-07 amounting also to $307.5 million. $300m is provided for allocation directly to councils, with shares based on assessments made by Local Government Grants Commissions in each State and Territory. The remaining $7.5 million is provided for roads in unincorporated areas.
A summary of R2R funding for 2006-07 is included at Table 6.1
The Australian Government also provides identified local road grants via Financial Assistance Grants to local government (See Table 6.1).
The AusLink Strategic Regional Program is designed to assist councils to develop regional transport infrastructure supporting industry, tourism and economic development. The program involves expenditure of $220.00 million over four years for eligible projects. The Budget provides for $60.3 million to be spent under this program in 2006-07. The Department of Transport and Regional Services is assessing applications from councils for unallocated funds available in this program under a merit driven process.
Total road funding allocation for councils in 2006-07 is contained in Table 6.2
| State | Supplementary Roads to Recovery Funding 2005-06 $m | Roads to Recovery 2006-07 $m | Untied local roads grants 2006-07 $m | AusLink Strategic Regional 2006-07 $m | Total $m |
|---|---|---|---|---|---|
| Total | 307.5 | 307.5 | 528.2 | 60.3 | 1203.5 |
| New South Wales | 85.6 | 85.6 | 149.5 | 30.1 | 350.8 |
| Victoria | 62.5 | 62.5 | 106.2 | 10 | 241.2 |
| Queensland | 62.5 | 62.5 | 96.5 | 3.3 | 224.8 |
| Western Australia | 45.0 | 45.0 | 78.8 | 2.3 | 171.1 |
| South Australia | 27.7 | 27.7 | 28.3 | - | 83.7 |
| Additional funding for SA local roads | - | - | 13.0 | - | 13.0 |
| Tasmania | 10.0 | 10.0 | 27.3 | 12.3 | 59.6 |
| Northern Territory | 9.0 | 9.0 | 12.1 | 2.3 | 32.4 |
| Australian Capital Territory | 5.0 | 5.0 | 16.5 | - | 26.5 |
| Indian Ocean Territories | 0.2 | 0.2 | - | - | 0.4 |
The AusLink Strategic Regional Program figures for Queensland, Western Australia and the Northern Territory each include a notional allocation for the Outback Highway. The final distribution of funds for the highway will be determined in consultation with the Outback Highway Development Council, local authorities and the state/territory governments.
The Strategic Regional component is also available to fund rail projects.
Regional airlines
The Budget contains $5.4 million in 2006-07 to subsidise en route air traffic control charges levied on regional airlines. The assistance will continue to be provided to services on sole operator routes by aircraft with a maximum take-off weight of 15 tonnes or under, and in WA for aircraft between 15 and 21 tonnes in recognition of the exceptionally long distances involved in flying in that state.
For information about ALGA's analysis of the Budget regarding Road funding please contact:
- Andy Hrast
- Director, Transport Policy
Australian Local Government Association - Phone: 02 6122 9432
- andy.hrast@alga.asn.au