Some level-crossing removal projects will also be delayed,but individual changes have not been outlined in the budget papers and the government will still aim to meet its deadline of removing 110 by 2030. Thismasthead revealed in March that a $1 billion upgrade of the Upfield line was among those likely to be affected.
Early works on the Suburban Rail Loop East will be completed nine months later than expected,in the first three months of 2026. No delays have officially been announced for the full $35 billion project or the North East Link,which last year blew out by $10 billion from its original cost.
An early works site for the Suburban Rail Loop in Burwood.Credit:Paul Jeffers
Pallas,in his speech introducing the budget,said now was the time for the government to “recalibrate” and make sure its investments were suited for the current conditions.
“With high global inflation,the International Monetary Fund,in its recent report on Australia,says now is the time for governments to adapt infrastructure investment to economic capacity,” he said.
“We’re recalibrating with a clear path forward,backed by disciplined decisions.”
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Infrastructure spending will fall from $24 billion in 2023-24 to just over $15 billion by 2027-28.
Pallas said the government now expected Melbourne Airport Rail to be four years behind schedule,despite a mediator recently being appointed to negotiate a dispute over the project.
The airport wants a station at Tullamarine built underground,but the Allan government is refusing because it says it will be too expensive. Victoria and the Commonwealth have committed $5 billion each to the project.
The treasurer said the airport wanted the government to accept an underground station or provide compensation.
“Believe me,we are doing neither of those things,so we’re at a stand-off,” he said.
“Of course,were the airport operator to see reason and maybe become a good corporate citizen at some point,instead of a really good car park operator,then perhaps we might be able to move those things forward.”
A Melbourne Airport spokesman said the timing of the project was a matter for government.
“Melbourne Airport was part of a consortium that offered up to $7 billion towards an underground airport station and express tracks from Sunshine,” the spokesman said. “The state government rejected this.”
Opposition transport infrastructure spokesman David Southwick said Labor could not manage money and major projects.
“Premier Jacinta Allan continues to put all our eggs in one basket,and communities across western Melbourne,growth corridors and regional Victoria continue to pay the price.”
The budget also included $752 million to operate and maintain rail assets delivered as part of the Big Build. Another $233 million was announced to continue preparing for the opening of the Metro Tunnel by 2025,but an almost identical amount was announced for a similar initiative the year before.
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