Overall, the 2025 federal budget handed down last night delivered mixed results for the trucking industry.
On one hand, increased funding for road safety, infrastructure, and freight corridors will provide long-term benefits, improving the efficiency and reliability of the transport sector.
However, concerns remain about the lack of new project announcements and direct financial relief for trucking businesses facing rising costs.
With inflation pressures and regulatory changes continuing to challenge the sector, many operators were hoping for fuel tax relief or additional financial support, which did not materialise in this budget.
Prime Minister Anthony Albanese had already announced the $7.2 billion spend on the Bruce Highway while on the election campaign trail, with the state government kicking in another $1.8bn.
But Senator Bridget McKenzie, the Shadow Minster for Infrastucture, Transport and Regional Development, said just $300 million of that will be spent over the next three years, with only $30 million allocated over the next 16 months.
“This Labor promise is a mirage and a con for Queenslanders who have been agitating for action on the Bruce Highway following years of Albanese cuts, delays and horrific road tragedies,” McKenzie said.
“In the May [2024] Budget, Federal Labor stripped $488 million from the Bruce Highway over the Budget forward estimates.
“Now it is ‘restoring’ only around half that funding at $280 million. “That means, for all the talk, the Bruce Highway will be worse off over the next three years”.
While the prime minister played up the virtue of announcing the Bruce Highway funding in a seat he can’t win (Wide Bay), saying it was for the good of Australia, not with an eye on politics, it’s a different story with the rest of the road and rail projects.
Pundits say he’s targeting the same areas as Peter Dutton as his pathway to government.
Major road spending areas outside the Bruce include:
- Over $2.3 billion for critical infrastructure upgrades in the growing Western Sydney region, including $1 billion to preserve the corridor for the South West Sydney Rail Extension and $500 million to upgrade Fifteenth Avenue.
- A further $465 million for New South Wales to plan for regional projects and fix notorious choke points, including $250 million to upgrade Mona Vale Road and $115 million to reduce travel times on Terrigal Drive.
- $2 billion to upgrade Sunshine Station in Victoria, a crucial project to deliver Melbourne Airport its first rail link.
- $1.1 billion to support upgrades along the Western Freeway in Victoria.
- $1 billion for the Road Blitz, a new package of works to increase capacity and improve efficiency in Melbourne’s suburbs and surrounds.
- $350 million for the Westport – Kwinana Freeway Upgrades in Western Australia.
- $200 million to duplicate sections of the Stuart Highway from Darwin to Katherine in the Northern Territory.
- $200 million to upgrade the Arthur Highway in Tasmania.
- $125 million for the Curtis Road Level Crossing Removal in South Australia.
- $50 million towards upgrading the Monaro Highway in the Australian Capital Territory.
- A further $200 million to ensure the delivery of the Rockhampton Ring Road in Queensland.
- A further $70 million to seal the remaining 11 kilometres of unsealed pavement on the Kennedy Developmental Road between The Lynd and Hughenden in Queensland.
In a post budget media release, Ehssan Veiszadeh, Chief Executive of Roads Australia, said investments such as $7.2 billion to upgrade the Bruce Highway, an additional $1 billion towards Victoria’s ‘Road Blitz’ and $1.8 billion for Western Sydney road projects, will have a “transformative impact” on those communities.
But Veiszadeh also reiterated Roads Australia’s calls for nationwide reform to address rigid government procurement processes and design standards, which are hampering the adoption of innovation in the transport sector.
“Australia needs a long-term plan for the future of our transport system, supported by a continued focus on supporting industry innovation and addressing the construction sector’s long-standing productivity challenges,” Veiszadeh said.
“Construction sector productivity is continuing to decline, dropping from 0.3 to -0.8 over the last 12 months. At a time where all government budgets are under considerable pressure, rigid procurement processes, overly onerous and outdated technical standards and poor labour productivity are collectively driving up the costs of project delivery.”