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Australian Government Coat of Arms

Budget | 2014-15

Budget 2014-15
Australian Government Coat of Arms, Budget 2014-15

Part 2: Expense Measures (continued)

Infrastructure and Regional Development

Civil Aviation Safety Authority Board — expansion

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Civil Aviation Safety Authority

The Government will expand the Civil Aviation Safety Authority's (CASA) Board from four to six members. This expansion will increase the breadth of knowledge and experience on the CASA Board, enhancing its capability to set and implement the strategic direction of the organisation. The cost of this measure will be met from within the existing resources of the CASA.

This measure delivers on the Government's election commitment.

Further information can be found in the Coalition's Policy for Aviation.

Hobart International Airport Runway Extension — contribution

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Infrastructure and Regional Development 5.5 26.1 6.4

The Government will contribute $38.0 million over three years from 2014‑15 for a runway extension of up to 500 metres and associated capital works at the Hobart International Airport.

This measure delivers on the Government's election commitment.

Further information can be found in the Coalition's Economic Growth Plan for Tasmania.

Indian Ocean Territories — additional funding

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Infrastructure and Regional Development 6.3

The Government will provide an additional $6.3 million in 2014‑15 to support the Indian Ocean Territories through additional funding for services on Christmas Island.

This funding will provide additional health staff to Christmas Island Hospital, additional police officers and one year of air services underwriting costs to meet current demands on Christmas Island.

Infrastructure Growth Package — addition to the Infrastructure Investment Programme for new investments

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of the Treasury 1,000.0 201.7 660.3 969.2 519.3
Department of Infrastructure and Regional Development 350.0
Total — Expense 1,000.0 201.7 1,010.3 969.2 519.3

The Government is providing a further $3.7 billion over five years from 2013‑14 to the Infrastructure Investment Programme for new investments to support economic growth and employment. The new investments include:

  • $1 billion for East‑West Link Stage 2 in Melbourne, which combines with a further $500 million being provided for the project from existing Infrastructure Investment Programme funding, for a total $1.5 billion investment to 2018‑19;
  • $866 million for the Perth Freight Link in Western Australia, taking the total Federal investment in the project to $925 million;
  • the Toowoomba Second Range Crossing in Queensland;
  • the North‑South Road Corridor in Adelaide;
  • Northern Territory road upgrades;
  • $229 million for a National Highway Upgrade Programme;
  • additional funding of $200 million for the Black Spot Programme; and
  • additional funding of $350 million for the Roads to Recovery Programme.

See related expense measures Infrastructure Growth Package — Western Sydney Infrastructure Plan — Road Funding and Infrastructure Growth Package — WestConnex Stage 2 — provision of a concessional loan in the Infrastructure and Regional Development Portfolio.

Infrastructure Growth Package — WestConnex Stage 2 — provision of a concessional loan

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Infrastructure and Regional Development 3.8 96.6 344.5 314.9
Related revenue ($m)
Department of Infrastructure and Regional Development 5.3 26.4

The Government will provide a concessional loan of up to $2.0 billion to accelerate the delivery of Stage 2 of the WestConnex project in Sydney. The value of the concessionality of the loan, on a fiscal balance basis, is estimated to be $728.1 million over the forward estimates. This measure includes a $3.8 million departmental allocation in 2014‑15 to the Department of Infrastructure and Regional Development for specialist advice in respect of the project and funding arrangements.

On an underlying cash basis, the impact of the loan is estimated to be $96.2 million over the forward estimates.

The loan would be available for drawdown during the construction period of WestConnex Stage 2 from 1 July 2015 to 31 December 2018. The full repayment of the loan is expected by 2029.

See also the related expense measures titled Infrastructure Growth Package — Western Sydney Infrastructure Plan — Road Funding and Infrastructure Growth Package — Western Sydney Infrastructure Unit — establishment.

Infrastructure Growth Package — Western Sydney Infrastructure Plan — Road Funding

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of the Treasury 103.0 210.2 351.6 530.9
Department of Infrastructure and Regional Development * * * * *
Total — Expense 103.0 210.2 351.6 530.9

The Government will provide $2.9 billion over 10 years from 2014‑15 to 2023‑24 (including $525.0 million in 2018‑19, $465.0 million in 2019‑20, $304 million in 2020‑21, $321.0 million in 2021‑22, $39.0 million in 2022‑23 and $20.0 million in 2023‑24) to deliver a Western Sydney Infrastructure Plan, by funding major road projects for the development of a second Sydney airport at Badgerys Creek and providing the transport infrastructure necessary to support a growing population in Western Sydney. The NSW Government's funding contribution takes this to a $3.5 billion road programme.

This Plan will deliver significant upgrades to major and local roads, including:

  • an upgrade of the Northern Road to a minimum of four lanes from Narellan to the M4 Motorway;
  • the construction of a new four‑lane motorway between the M7 Motorway and the Northern Road;
  • an upgrading of Bringelly Road to a minimum of four lanes from Camden Valley Way to the Northern Road; and
  • a $200 million local roads package.

See also the related expense measures titled Infrastructure Growth Package — WestConnex Stage 2 — provision of a concessional loan, Infrastructure Growth Package — Western Sydney Infrastructure Unit — establishment, Infrastructure Growth Package Asset Recycling Initiative — establishment and Infrastructure Growth Package — addition to the Infrastructure Investment Programme for new investments.

Infrastructure Growth Package — Western Sydney Infrastructure Unit — establishment

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Infrastructure and Regional Development 28.3 27.5 16.2 5.8

The Government will provide $77.8 million over four years to establish a dedicated Western Sydney Infrastructure Unit (the Unit) in the Department of Infrastructure and Regional Development to progress the development of a second major airport at Badgerys Creek. The Unit will:

  • develop detailed airport design concepts;
  • conduct environmental assessments; and
  • engage with potential private sector operators, in particular the Sydney Airport Group, on commercial arrangements for the development and long term leasing of a new civil airport at Badgerys Creek.

Further information can be found in the press release of 15 April 2014 issued by the Prime Minister and the Deputy Prime Minister and Minister for Infrastructure and Regional Development.

Local Government Financial Assistance Grants — pause indexation for three years

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Infrastructure and Regional Development ‑95.8 ‑200.4 ‑307.8 ‑321.1

The Government will achieve savings of $925.2 million over four years by pausing indexation of the Local Government Financial Assistance Grants Programme for three years commencing 1 July 2014.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Local Government Reform Fund — cessation

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Infrastructure and Regional Development ‑1.2

The Government will achieve savings of $1.2 million in 2013‑14 by withdrawing the remaining uncommitted funding from the Local Government Reform Fund.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Malaysia Airlines flight MH370 — search

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Australian Transport Safety Bureau 10.4 49.6
Department of Defence 25.0 3.0
Department of Infrastructure and Regional Development 1.0 1.0
Total — Expense 36.3 53.6

The Government will provide up to $89.9 million over two years from 2013‑14 as part of Australia's contribution to the search for Malaysia Airlines flight MH370.

Funding of $27.9 million over two years from 2013‑14 will be provided to the Department of Defence for the costs of its activities to 30 June 2014 in searching for MH370. Funding of $2.0 million over two years from 2013‑14 will also be provided to the Department of Infrastructure and Regional Development for the costs of establishing the Joint Agency Coordination Centre (JACC). The JACC was established on 30 March 2014 for an initial period of six months to support liaison with key stakeholders and help ensure strong and consistent communication of the Australian response to the MH370 incident.

Further funding of up to $60.0 million over two years from 2013‑14 will be provided to the Australian Transport Safety Bureau for Australia's contribution to the next phase of the search. The actual cost will depend on a number of factors, including the outcome of procurement processes for specialist services, the length of the search, and the extent of contributions from other countries.

Further information can be found in the transcript of the Prime Minister's press conference of 28 April 2014.

National Stronger Regions Fund — establishment

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Infrastructure and Regional Development 200.0 200.0 200.0

The Government will provide $1.0 billion over five years from 2015‑16 (including $200.0 million in 2018‑19 and 2019‑20) for a competitive grants programme to support the construction, expansion and enhancement of infrastructure across Australia. Grants will be available for projects to be delivered in partnership with local, state and territory governments, private sector and community groups. Funding partners will be required to contribute at least half the total project cost.

This measure delivers on the Government's election commitment.

Further information can be found in the joint media release of 29 August 2013 by the then Opposition Leader and the then Shadow Minister for Infrastructure and Transport.

Norfolk Island — essential air services

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Infrastructure and Regional Development nfp

The Government will provide funding in 2014‑15 to meet its commitments to Air New Zealand under an agreement for underwriting essential air services to Norfolk Island.

Funding for this measure is not for publication as negotiations with the service provider are commercial‑in‑confidence.

Norfolk Island — financial assistance

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Infrastructure and Regional Development 7.5

The Government will provide $7.5 million to assist the Norfolk Island Government to meet its financial obligations.

This funding will allow for the ongoing provision of essential health, education, policing and utility services to Norfolk Island residents.

The Government will also provide $2.0 million to support improved governance on Norfolk Island.

See also the related expense measure titled Norfolk Island — governance reform.

Norfolk Island — governance reforms

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Infrastructure and Regional Development 2.0

The Government will provide $2.0 million to support the delivery of a number of governance reforms on Norfolk Island.

Areas of reform include the development of improved financial management practices and performance audits of Norfolk Island Government business units.

Funding will also support the continued engagement of the Commonwealth Financial Officer to provide oversight and advice to the Norfolk Island Government on its budgeting and expenditure processes.

See also the related expense measure titled Norfolk Island — financial assistance.

Protection of the Sea Levy — reduction — offsetting savings

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Infrastructure and Regional Development
Australian Maritime Safety Authority ‑9.0 ‑9.0 ‑10.0 ‑11.0
Total — Expense ‑9.0 ‑9.0 ‑10.0 ‑11.0

The Government will achieve savings of $39.0 million over four years by rephasing lower priority maritime safety initiatives. These savings will offset the reduction in revenue from lowering the rate of the Protection of the Sea Levy from 14.25 cents to 11.25 cents per net registered tonne for defined vessels on an ongoing basis from 1 July 2014.

See also the related revenue measure titled Protection of the Sea Levy— reduction in the Infrastructure and Regional Development portfolio.

Smaller Government — Department of Infrastructure and Regional Development — savings

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Infrastructure and Regional Development ‑2.8 ‑3.7 ‑3.7 ‑3.7 ‑3.7
Department of the Treasury ‑61.6 ‑24.5 ‑51.9 ‑2.5
Total — Expense ‑64.4 ‑28.3 ‑55.6 ‑6.2 ‑3.7

The Government will achieve savings of $17.6 million over five years from 2013‑14 as a result of the recent merger of the Department of Infrastructure and Regional Development and the former Department of Regional Australia, Local Government, the Arts and Sport. These savings will be achieved through the removal of duplicated corporate functions.

The Government will also achieve savings of $140.5 million from 2013‑14 as a result of lower than expected calls on contingency provisions within the Infrastructure Investment Programme.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Sustaining Australia's Maritime Skills — cessation

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Infrastructure and Regional Development ‑1.6 ‑1.7 ‑1.7

The Government will achieve savings of $5.0 million over three years from 2013‑14 by not proceeding with funding for the Sustaining Australia's maritime skills measure announced in the 2013‑14 Budget.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Tasmanian Wheat Freight Scheme — cessation

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services .. 0.1
Department of Infrastructure and Regional Development ‑1.1 ‑1.1 ‑1.1 ‑1.1
Total — Expense .. ‑0.9 ‑1.1 ‑1.1 ‑1.1

The Government will achieve savings of $4.1 million over four years from ceasing funding to the Tasmanian Wheat Freight Scheme (TWFS).

The TWFS subsidises the cost of shipping bulk wheat to Tasmania but no claim has been received under the TWFS since August 2009. Containerised shipments of wheat to Tasmania remain eligible for assistance under the Tasmanian Freight Equalisation Scheme.

The Department of Human Services, which administers the TWFS, will receive $0.1 million to update its systems and information documents as a result of the termination of the TWFS.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.