Infrastructure review finds billions in cost pressures

Multiple federal infrastructure projects are on the chopping block in a bid to ease inflation, with a review finding billions of dollars worth of overruns.

An independent review of the infrastructure investment program has found $33 billion of budget blowouts, with that figure tipped to grow even further.

Infrastructure Minister Catherine King said the investment pipeline, which had increased from 150 to 800 projects under the previous government, had not been managed well.

Infrastructure Minister Catherine King
Infrastructure blowouts were causing inflation pressures, federal minister Catherine King said.

However, the minister did not say how many infrastructure projects would be cut.

"It is simply just not sustainable for the pipeline to continue the way that it is after a decade of being used for political purposes," she told ABC radio on Monday.

"There's been evidence that this infrastructure pipeline has not been managed and not been managed well, and obviously, that is also causing inflation pressures."

The review looked at about 200 infrastructure projects, with recommendations being made about cancelling some.

"It's made some recommendations around making sure we've got planning money and we slow the process down so we know what the costs are," Ms King said.

"We have to do this in partnership, we have to do it in collaboration with states and territories. They are partners with us, we are investors alongside them."

The minister indicated talks were under way with each jurisdiction on what projects would still be needed.

"What I don't want to do is promise people that we're going to build something when it clearly is not going to be built," she said.

The infrastructure pipeline was estimated to be worth more than $120 billion.

Ms King announced a 90-day review of the pipeline in May in a bid to make the program more sustainable.

At the time, 162 programs in the pipeline had a government commitment of $5 million or less.

Projects that had been announced in the budget or had already started construction were not impacted by the review.

Sydney construction site
The infrastructure pipeline was estimated to be worth more than $120 billion.

Opposition infrastructure spokeswoman Bridget McKenzie hit out at the government for not specifying which projects would be affected.

"The prime minister needs to guarantee that projects to assist with the congestion in our crowded cities and suburbs will not be cut," she said.

"The projects that are under review are in the planning stage, they haven't started construction, therefore are not putting pressure on inflation.

"Local governments and grassroot organisations have already been waiting too long to find out if their local community building projects have fallen victim to Albanese's razor gang."

Chief executive of the Australian Constructors Association Jon Davies said critical infrastructure projects could not afford to be cut.

"With over 500,000 migrants predicted to enter the country this year, we cannot afford to cut back on building schools, hospitals and transport infrastructure," he said.

"We could afford to build everything we need, without any significant inflationary impact, if we focus on improving the construction industry's productivity."

License this article

What is AAPNews?

For the first time, Australian Associated Press is delivering news straight to the consumer.

No ads. No spin. News straight-up.

Not only do you get to enjoy high-quality news delivered straight to your desktop or device, you do so in the knowledge you are supporting media diversity in Australia.

AAP Is Australia’s only independent newswire service, free from political and commercial influence, producing fact-based public interest journalism across a range of topics including politics, courts, sport, finance and entertainment.

What is AAPNews?
The Morning Wire

Wake up to AAPNews’ morning news bulletin delivered straight to your inbox or mobile device, bringing you up to speed with all that has happened overnight at home and abroad, as well as setting you up what the day has in store.

AAPNews Morning Wire
AAPNews Breaking News
Breaking News

Be the first to know when major breaking news happens.


Notifications will be sent to your device whenever a big story breaks, ensuring you are never in the dark when the talking points happen.

Focused Content

Enjoy the best of AAP’s specialised Topics in Focus. AAP has reporters dedicated to bringing you hard news and feature content across a range of specialised topics including Environment, Agriculture, Future Economies, Arts and Refugee Issues.

AAPNews Focussed Content
Subscription Plans

Choose the plan that best fits your needs. AAPNews offers two basic subscriptions, all billed monthly.

Once you sign up, you will have seven days to test out the service before being billed.

AAPNews Full Access Plan
Full Access
AU$10
  • Enjoy all that AAPNews has to offer
  • Access to breaking news notifications and bulletins
  • Includes access to all AAPNews’ specialised topics
Join Now
AAPNews Student Access Plan
Student Access
AU$5
  • Gain access via a verified student email account
  • Enjoy all the benefits of the ‘Full Access’ plan at a reduced rate
  • Subscription renews each month
Join Now
AAPNews Annual Access Plan
Annual Access
AU$99
  • All the benefits of the 'Full Access' subscription at a discounted rate
  • Subscription automatically renews after 12 months
Join Now

AAPNews also offers enterprise deals for businesses so you can provide an AAPNews account for your team, organisation or customers. Click here to contact AAP to sign-up your business today.

SEVEN DAYS FREE
Download the app
Download AAPNews on the App StoreDownload AAPNews on the Google Play Store