Federal government releases $2.2 billion for Suburban Rail Loop, further funding uncertain

The Federal Government has released $2.2 billion for Victoria’s Suburban Rail Loop (SRL) project but has held off on committing any additional funding, citing the need for further assessments on costings and value capture.

Federal Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King confirmed the release of the funds in an interview with ABC News on Wednesday, stating that Infrastructure Australia and her department had completed their assessment of the project and recommended that the money be allocated to the Victorian Government.

“This is the existing money that we’ve had on the table for Suburban Rail East,” Minister King said. “Infrastructure Australia and my department have now provided me with advice on the assessment of the project appraisal report, and that’s now been released to the Victorian Government.”

While the Victorian Government has been lobbying for additional funding, Minister King made it clear that further investment would not be considered until additional hurdles were addressed.

“There are still some hurdles that the Victorian Government will need to overcome in relation to advice that I will receive from Infrastructure Australia, particularly regarding costings around value capture, before the Commonwealth can make another investment,” she said.

Minister King described the Suburban Rail Loop as an important project but stressed the need to ensure taxpayer money is being spent effectively.

“As a Victorian, I know it’s a really good project. I grew up in the southeastern suburbs of Melbourne and have seen the huge population growth in areas like Box Hill,” she said. “But I also need to make sure that I’m getting value for money for Australian taxpayers.”

The Federal Government’s decision comes amid broader discussions about infrastructure funding in Victoria, with concerns raised about the allocation of resources to outer suburbs and regional areas. The recent Werribee by-election highlighted discontent among voters in Melbourne’s west, who feel neglected in terms of transport investment.

Minister King acknowledged the concerns and pointed to recent federal investment in road infrastructure in Werribee as an example of the government’s commitment to addressing transport issues in growth areas.

“We’re really keen to partner with the Victorian Government on a whole range of projects, and we’ll keep talking to them as part of the budget process,” she said.

The Victorian Government has yet to formally respond to the federal announcement, but it is expected to continue advocating for additional funding to support the delivery of the multi-billion-dollar rail project, which aims to connect Melbourne’s suburbs and ease congestion on existing train lines.