City Deals backed by the Budget

Release Date: 
19 May 2017
Media release

The Turnbull Government’s 2017 Budget lays the foundations for future City Deals.

The Budget includes a significant boost for our cities – both metropolitan and regional – and paves the way for new City Deals to be announced in coming months.

Under the $10 billion National Rail Programme, projects such as Adelink, Tullamarine Rail link, Cross River Rail in Brisbane, the Western Sydney Airport Rail link and Brisbane Metro, could provide a focal point for future City Deals.

“The City Deal process is a competitive one. Where there is willingness to cooperate on joint outcomes, where there are significant opportunities for improvements to city living, we are keen to work with jurisdictions toward City Deals,” Assistant Minister for Cities Angus Taylor said.

The Federal Government is not handing over money like an automatic teller machine; we want to work closely with states, territories and local governments to deliver City Deals which build in reforms at a local or regional level.

New Infrastructure Commitments

The 2017 Budget is a once-in-a-generation, $75 billion infrastructure budget that commits to important projects across the nation. 

In Western Australia, the Government is investing in a $2.3 billion jobs and infrastructure package with the state, with $1.2 billion to be jointly allocated to future METRONET projects in Perth.

“This package aligns strongly with the Government’s Smart Cities agenda and we will continue to work with the state on opportunities to deliver a City Deal,” Assistant Minister Taylor said.

In Victoria, the Government will make $1 billion available for regional rail and other infrastructure projects, including $30 million to develop a business case for a rail link to Melbourne Airport at Tullamarine. A new $500 million Victorian regional rail fund will also include $100 million to upgrade the Geelong Rail Line and $100 million for North East Rail upgrades.

“These types of investments would be excellent cornerstones of City Deals. They will better connect regional centres, delivering access to jobs and quality services, and help shape plans for better rail connections in Melbourne,” Assistant Minister Taylor said.

In Queensland, the Government is using $844 million in savings to reinvest in critical infrastructure projects in the state. To support the development of a vibrant and prosperous South East Queensland region, the Budget also includes a concessional loan for the University of the Sunshine Coast to support the development of a new Moreton Bay Campus. This investment will also support the development of a city deals strategy for South East Queensland.

Western Sydney City Deal

The Budget provides up to $5.3 billion to build a new airport for Western Sydney at Badgerys Creek, creating 20,000 jobs by the early 2030s and 60,000 in the longer term. The airport will form the core of a new City Deal for Western Sydney, to be delivered by the end of 2017.

“The City Deal for Western Sydney will harness the economic opportunity created by the Western Sydney Airport. It will provide better transport options for Western Sydney, create jobs closer to homes, increase housing supply, and provide families and businesses with affordable options on where to live and invest,” Assistant Minister Taylor said.

Under a comprehensive housing package, the Government will also establish a $1 billion National Housing Infrastructure Facility to help local governments fund the infrastructure needed to unlock the construction of new homes through ‘micro’ city deals, agreements which apply the City Deal model of collaboration on a smaller scale.

Growing Regions

Australia’s first two City Deals have been delivered in the regional cities of Townsville and Launceston.

The Budget provides $472.2 million for a new Regional Growth Fund, including $272.2 million for major investments of at least $10 million, that will target transformational regional projects, in partnership with local and State governments. This fund will help unlock the potential of our regions, building on the partnership approach demonstrated through our first regional City Deals.

Strong Foundations for the Cities Agenda

The Government is progressing memoranda of understanding with all jurisdictions to create a platform for partnership on future City Deals. 

The Budget provides $23.5 million to invest in the Government’s Cities Division, to strengthen roll out of the Cities Agenda.