Federal Budget to reveal extent of roadblocks in transport funding

• Budget analysis shows motorists short-changed by $4.4 billion
• Peak motoring body says jobs and lives depend on clearing budget roadblocks

This week’s Federal Budget will reveal if the federal government has finally removed the roadblocks that have for too long prevented the flow of infrastructure funds to promised transport projects across Australia.

Analysis by Australia’s peak motoring body, the Australian Automobile Association (AAA), shows that over the past five Federal Budgets there has been an accumulated shortfall of $4.4 billion between land transport allocations and the totals actually spent.

The 2019/20 financial year alone generated a $1.54 billion shortfall.

(Media note: summary of analysis at end of media release)

Managing Director of the AAA, Michael Bradley, said successive federal governments had blamed the states for not spending the money quickly enough when challenged about the string of budget shortfalls.

However, Mr Bradley said with the advent of Covid-19 last year, the Commonwealth and State Governments gave an undertaking to fast track or bring forward ‘shovel-ready’ projects as a part of protecting and creating jobs, particularly in the construction industry.

“This week’s budget will determine whether or not the public will continue to be short-changed by the infrastructure budget.”

“If the funding commitments were not honoured, projects are stalling and thousands of job opportunities were lost during the pandemic simply because the Federal and State government didn’t implement the funding reforms they had promised.”

“If the funding commitments have not been honoured, then the Government needs to stipulate what plans it has to remove the roadblocks if this week’s budget announcements are to stand up,” Mr Bradley said.

Mr Bradley also said if the funding commitments were honoured then that would signify a welcome and major turning point in federal, state and territory funding models.

Last year the AAA welcomed the Federal Budget’s $14 billion commitment to transport projects over the next four years saying it would “help protect Australian jobs and importantly, protect lives on the nation’s roads.”

“All Australians will be wanting Tuesday’s Federal Budget to show that those commitments are being honoured and are on track. Lives and jobs depend on it,” Mr Bradley said.

Click here to download a copy of the release