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The first section of the Suburban Rail Loop is due to cost $35 billion and be finished in 2035.Credit:Jason South

Early works have commenced on the rail loop’s first 26-kilometre eastern suburbs section,running underground from Cheltenham to Box Hill. The Andrews government says it willopen it to passengers by 2035.

Speaking on the sidelines of an event in Melbourne on Friday,King said she would look to advice from the independent adviser,Infrastructure Australia,to decide whether to pour more funds into the project.

The Albanese government introduced legislation to parliament this week that it said would restore the body as the government’s top adviser on where to direct billions in spending.

“The Suburban Rail Loop will be one of the projects,in terms of future funding,that I would expect a stronger,more capable … Infrastructure Australia to be able to provide that advice on going into a budget cycle,” King said.

“Suburban Rail is obviously one of the really big projects which will necessitate the state working very closely with the revised Infrastructure Australia,if we get the legislation through parliament.”

King said Infrastructure Australia had become “divorced” from Commonwealth budget decisions and needed to return to its intended role as a source of independent advice,alongside that from her department.

Victorian Deputy Premier and Suburban Rail Loop Minister Jacinta Allan said the state would work with the reformed Infrastructure Australia to press the merits of the state’s flagship transport project.

“I wouldn’t put the cart before the horse and say that that means there isn’t going to be any federal funding coming for the Suburban Rail Loop because they’ve got to go through their own proper processes,” she said.

“Importantly,what we have right now is a partnership with the federal government. The $2.2 billion that was committed … means we are underway with early works.”

The Andrews government has committed $11.8 billion to the Rail Loop. Its business case outlines splitting the cost three-ways with the Commonwealth and with private sector development contributions.

Future stages of the Rail Loop would continue north to Melbourne Airport by 2056 and continue west to Werribee,forming a 90-kilometre loop around the city.

King told the CEDA Infrastructure Conference on Friday morning that labour shortages,construction industry constraints and cost inflation meant the government needed to make “tough decisions about what not to build and what projects to prioritise”.

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