Budget 2017: Turnbull Government to fast-track road, rail infrastructure.

The ABC's 7.30 program understands much of the $50 billion infrastructure plan from last year's budget is going to be brought forward.

Budget 2017

Source: AAP

Spending on roads, rail and other major infrastructure will be fast-tracked under a new funding approach to be unveiled by the Turnbull Government in May's budget.

The ABC's 7.30 program understands much of the $50 billion infrastructure plan from last year's budget is going to be brought forward.

7.30 can also reveal the Government is now intent on taking equity stakes in big infrastructure projects, including taking a share in tolls raised on roads part-funded by the Commonwealth.

The Prime Minister has also grown weary of states taking credit for infrastructure projects part-funded by the Federal Government.

According to Cabinet sources, Malcolm Turnbull has regularly cited the Toowoomba Second-Range Crossing in south-east Queensland as a case in point.

The Federal Government put more than $1 billion into the project, which is 80 per cent of the total cost.

Yet when the road is finished in late 2018 the Queensland Government will likely claim much of the kudos.

The State Government will also be the beneficiary of a toll, with drivers paying up to $30 a vehicle to use the 41km link.

A rethink inside the Federal Government, led by Mr Turnbull, will see the Commonwealth adopting an approach that resists handing over money on major infrastructure projects without strings attached.

This will mean more loans instead of grants and it could see the Government assuming an interest in the second Sydney airport at Badgerys Creek.

The Federal Government will also demand a cut of any proposed tolls on roads it helps fund, as the Prime Minister has proposed to do with Melbourne's Western Distributor.

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By Madhura Seneviratne
Source: ABC Australia


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