NSW won't accept cuts to key infrastructure funding

Talks between the NSW and federal governments over funding for key infrastructure are continuing but there is no guarantee the state will have its previously promised allocation restored.

Federal Infrastructure minister Catherine King last week announced the government's intention to strip multiple state projects following an overhaul of planned spending.

NSW, the nation's most populous state, will lose out on federal backing for the largest number of projects of any jurisdiction, leading to a potential $1.4 billion hit to its budget.

Money will be taken away from a series of road projects, including Commonwealth support for a key interchange due to open in 2026 to provide better road access to Western Sydney Airport.

Roads Minister John Graham said state officials had been in "good" weekend talks with their federal counterparts, but there were no guarantees about what the state would receive.

The NSW government was unhappy with a decision that would see other states better off, he added.

"We don't accept that's the final settlement (and) we don't accept that's where things should rest," he said.

As part of the infrastructure overhaul, more funding was provided for some projects, including $2.725 billion for an Adelaide motorway and more than $2.5 billion extra for various road and rail developments in Queensland.

In comparison, NSW received about $112 million extra in funding for six projects.

Premier Chris Minns said the state government was not "whingeing" for the sake of it.

"The taxpayers of NSW deserve to have access to world-class education, functioning hospitals and infrastructure that's been promised," he said.

"NSW taxpayers send a lot of money to the Commonwealth government to run processes and infrastructure and we expect our fair share, not to have it funnelled or diverted to other states." 

Treasurer Daniel Mookhey said the decision to pull funding from the $1.7 billion M7-M12 interchange near Western Sydney Airport was particularly disappointing given its construction was already in progress. 

"When (Ms King) said that the federal government wouldn't be yanking funding for projects that were already under construction, we expected, therefore, that money to be safe," he said.

The Commonwealth had previously committed $110 million towards its delivery. 

"The project is already in construction, it's already contracted and so it has to be delivered," Mr Mookhey said.

"It does seem as though the federal government was prepared to pull money, knowing full well that we were going to have to still deliver the project." 

Treasury analysis showed the state budget was likely to be about $1.4 billion worse off over the next three years due to the infrastructure cuts, Mr Mookhey said.

"We would like (the Commonwealth) to reverse these decisions and we would like them to ensure that NSW gets its fair share of infrastructure investment," he said.

"We've been in conversations with the federal government as part of their 90-day infrastructure review for more than 200 days ... it's not clear whether the Commonwealth has been listening."

Ms King's office has been contacted for comment.

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