The Federal Government has unveiled more than $12 billion in new transport and infrastructure investment in the 2026-27 Federal Budget, aimed at improving freight productivity, strengthening supply chains and supporting growing communities.
The Budget includes $10.3 billion for transport infrastructure projects, alongside $976 million for transport initiatives and $803 million for community infrastructure programs.
The Federal Government said the investment would support safer and more reliable transport networks, while boosting productivity and improving connections between cities and regional communities.
Key transport infrastructure commitments include:
- $3.8 billion for Victoria’s Suburban Rail Loop East, bringing the Federal Government’s total contribution to $6 billion
- $1.75 billion for productivity and resilience upgrades across the Australian Rail Track Corporation’s freight rail network
- $812.5 million for Stage 2 of the Bruce Highway – Gateway Motorway to Dohles Rocks Road upgrade in Queensland
- $552 million for the first stages of the Anketell Road upgrades in Western Australia
- $50 million for upgrades to the Sydney to Canberra rail corridor and development of a long-term business case
The government said the infrastructure package would help support housing growth, strengthen freight efficiency and improve transport reliability during a period of global economic uncertainty.
The Budget also includes a range of investments aimed at supporting local communities and regional infrastructure delivery.
Councils will receive 80 per cent of their 2026-27 Financial Assistance Grant entitlement early, equating to $2.9 billion brought forward to support local infrastructure and service delivery.
The Government also committed:
- $750 million for new rounds of the Thriving Suburbs and Growing Regions programs
- $22.5 million for Round 10 of the Stronger Communities Program
- An additional $500 million for the Active Transport Fund to support walking and cycling infrastructure
The Budget also includes measures focused on fuel security, freight efficiency and transport industry resilience.
These include:
- $47.1 million to continue development of a Maritime Single Window digital reporting system
- $4 million to develop a Green Fuel Bunkering Strategy
- $38.1 million over four years to strengthen aviation consumer protections
- $4.5 million for ongoing aviation price monitoring by the Australian Competition and Consumer Commission
The Federal Government said the Budget would support long-term transport productivity while helping Australia respond to ongoing fuel supply disruptions and broader global challenges.
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