Prime Minister Anthony Albanese will increase the Commonwealth contribution to the Suburban Rail Loop to 6 billion dollars, supporting the Melbourne transport project despite inflation concerns and political opposition.
Prime Minister Anthony Albanese will pour $3.8 billion into the Suburban Rail Loop despite inflation and debt fears, money that Labor will place in a “locked box” only to be spent on a project that federal and state Coalition parties have remained steadfast against.
Giving the Allan government a boost seven months out from the state election, Albanese will on Friday announce the Commonwealth’s contribution to the tunnel between Cheltenham and Box Hill will rise to $6 billion, as flaggedThe commitment, which is still short of a third of the project’s $34.5 billion price tag which Premier Jacinta Allan has sought from Albanese, raises questions about what will happen to the money if Opposition Leader Jess Wilson wins in November. She has vowed to pause and review the project.
But an Albanese government source said its cash, which comes at a time when the government is trying to rein in spending on inflated transport projects to prioritise housing, was tied to milestones in the SRL and would not be seamlessly transferred to alternative projects.road project. Then premier Daniel Andrews cancelled a contract for the road, prompting the prime minister of the day, Tony Abbott, to declare the Commonwealth’s $3 billion was in a locked box.
The standoff continued for years, and in the days before Albanese’s 2022 election win, Andrews blasted the locked box that was by then under Scott Morrison’s control as a “dog box”. Federal Labor’s then infrastructure spokeswoman Catherine King, asked at the time about her plans for the East West Link funding, said her party would “work with whoever is in power to actually deliver projects”.
New agreements could be struck between the Albanese government and any new Coalition government in Victoria, but Albanese is personally attached to the SRL. Overriding anxiety about the cost and merit of the project from many of his own MPs, Albanese said the SRL was “a game changer for the city of Melbourne”.
“Ensuring Victorians can get into greater Melbourne and across suburbs, rather than having to go into the CBD then back out, helps speed up travel times, get cars off the road and increases opportunities for businesses in Melbourne’s east,” he said. Point of no return: New deal for Suburban Rail Loop makes it too expensive to cancel On top of the $11.5 billion Allan is ultimately expecting from the Commonwealth, the state government has vowed to cover another third of the total costs, with the remaining third to be recouped through taxes and charges labelled as value capture.
The project’s $34.5 billion price tag has been heavily questioned, given construction costs have soared by at least 22 per cent since it was proposed in 2019. This does not include the recent impacts of conflict in the Middle East. In some areas, builders have warned of price increases of 35 per cent. But the contracts signed so far have remained within $34.5 billion, and tunnelling is expected to begin this year.
The federal cash was already accounted for in this week’s state budget. It also provides a political win for Allan, who has long campaigned for more federal funding and pushed ahead with the expensive project despite criticism about its impact on the state’s finances.
“In the Albanese Labor Government we have a partner in Canberra who gets what our growing state needs," Allan said. Federal opposition infrastructure spokeswoman Bridget McKenzie said it was improper for Labor to suggest it would withhold money from a duly elected Coalition government.
“This is solidarity on steroids,” she said, reminding voters about Labor’s relationship with the CFMEU in the Big Build. “This actually goes to the heart of state sovereignty. ”Spending from the Commonwealth’s $120 billion infrastructure pipeline was expected to be slowed down to deal with inflation, however the prime minister had been determined to provide additional funding to the rail loop.
Sources, speaking anonymously to detail confidential discussions, said last week that Labor ministers including King, the infrastructure minister, had previously been sceptical about the merits of the project. One Labor source said it was not supported by many Victorian federal MPs. Early last year, Infrastructure Australia described the SRL’s benefits as “overstated”, expressed “low confidence” in its cost estimates, and talked up “exit strategies”.
In a reversal, the independent infrastructure advisory said in March this year that the SRL was a priority and should be funded. When the initial $2.2 billion of federal funding was provided, it was released under the stipulation that it was for “no regrets” items such as land acquisition and improvements to utilities.
“This investment by the Albanese Government in nationally significant infrastructure such as SRL boosts productivity and accessibility for Victoria," she said. The state budget confirmed that $6.5 billion has already been spent on SRL East, including $2 billion in early works. This will ramp up as tunnelling gets underway, with $3.2 billion expected to be spent in 2026-27 financial year.is Chief Political Correspondent.
He previously covered Victorian politics and won a Walkley award and the 2025 Press Gallery Journalist of the Year. Contact him securely on Signal @paulsakkal.14.
Suburban Rail Loop Anthony Albanese Melbourne Infrastructure Transport Funding
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Albanese to Break Tax Promise in Labor-Friendly BudgetPrime Minister Anthony Albanese is set to unveil a budget that reverses a key election promise, scaling back negative gearing and capital gains tax breaks. The changes aim to create a fairer tax system, particularly for younger Australians, but are expected to face strong opposition.
Read more »
‘Total hypocrisy’: Albanese govt scraps final portion of Barnaby Joyce’s Inland RailOne Nation MP Barnaby Joyce has called out the Albanese government’s lack of 'economic sense' and 'vision' after it moved to scrap his brainchild, the Inland Rail.
Read more »
Albanese government withholds details of ISIS brides' return to AustraliaThe Albanese government has refused to disclose the arrival timing and settlement locations of ISIS brides returning to Australia, citing operational secrecy. While sources suggest arrivals in Sydney and Melbourne, authorities remain tight-lipped. Opposition criticizes the handling of the issue, accusing the government of allowing terrorist sympathizers to return.
Read more »
Exit 8 horror film director Genki Nakamura wants people to break out of the loopThe creator of the minimalist horror film hopes it inspires viewers to stop doomscrolling and take a look at the world around them.
Read more »
‘Unbelievable’: Ex-deputy PM rejects Albanese govt’s Inland Rail axingFormer deputy prime minister John Anderson has rejected the Albanese government’s axing of the full-length Inland Rail project, which he said would have “given rail a real chance”.
Read more »
Almost $4bn more for Victoria’s contentious Suburban Rail Loop to be included in federal budgetAdditional funding for the costly 90km public transport project promised ahead of state’s November election
Read more »