Master Builders has welcomed the State Government’s commitment in their first Budget of up to $22 billion for infrastructure projects, expected to create around 16,000 jobs, over the coming years, although only a portion will be allocated this year.

Major projects to receive funding include the removal of 50 level crossings, the Melbourne Metro Rail and the widening of CityLink and Tullamarine Freeways.

A range of hospital, school, tourism and sports developments have also been announced.

The Treasurer will be providing Master Builders’ members with an outline of the State Budget at our next Industry Breakfast on Thursday 21 May. Make sure to register and discover how your business can benefit from these announcements.

Master Builders CEO Radley de Silva notes that this budget is “a start towards much-needed investment in the building and construction sector, however much more is required to deliver a sustainable industry for our state, including a much larger pipeline of major, at-the-ready works.”

“We have been calling for the establishment of Infrastructure Victoria and today’s commitment to do this is a welcome step, but it needs to be implemented promptly as an independent agency to assist in getting these state-shaping projects moving as soon as possible” Mr de Silva said.

“The Western Distributor proposal, for example, has yet to be finalised and approved, which we urge the government to progress in a timely manner.”

“We also need to see action taken on housing affordability to ensure everyday Victorians have the opportunity to fulfil the great Australian dream of owning their own home.”

A summary of Master Builders’ priorities for ‘’Building Our Future” released prior to the Budget can be viewed here.

Other points of interest outlined in the budget for our industry include:

  • Stamp duty exemptions on special mobile plant equipment for small businesses;
  • Halved vehicle registration costs for trade apprentices; and
  • Funding for government to address a backlog of development applications.

50 Level Crossing Removals

The State Government has committed up to $2-2.4 billion over four years to commence the removal of 50 of the state’s most dangerous and congested level crossings.

The first package of work is expected to be awarded later this month, with all 17 crossings identified so far in the process to be contracted this year, to be removed by 2018.

All nine level crossings between Dandenong and Caulfield will be removed as part of the government’s plan to transform the Cranbourne-Pakenham line.

A further four level crossings are already out to market to be removed within the next three years at:

  • Main Road in St Albans;
  • North Road in Ormond;
  • Burke Road in Glen Iris; and
  • Blackburn Road in Blackburn.

The Level Crossing Removal Authority has also undertaken market soundings for four additional level crossing removals located close to the four already out to market:

  • Furlong Road, near Main Road in St Albans;
  • Heatherdale Road near Blackburn Road in Blackburn;
  • Centre Road in Bentleigh; and
  • McKinnon Road in McKinnon.

Melbourne Metro Rail Project

This Budget commits up to $11 billion to deliver the Melbourne Metro Rail Project, including $1.5 billion over the next four years to complete the planning, design and early works before construction commences in 2018.

The project is expected to create 3500 jobs at the peak of construction on the pair of nine-kilometre tunnels, to be completed by 2026.

More new schools, hospitals and sporting facilities to be built across the state

The State Government has also committed funds over several years to a range of projects across Victoria, which Master Builders has called on to be made ‘shovel-ready’ as soon as possible:

  • $600 million for addressing road congestion, including $150 million toward the M80 upgrade;
  • $730 million to build, upgrade and maintain schools across the state, including $325 million to rebuild, renovate or refurbish 67 schools and $111.1 million to establish 10 new schools in Craigieburn, Sale, Tarneit, Albert Park, South Melbourne, Footscray, Richmond, Bannockburn, Mernda and Doreen;
  • $560 million in a hospital capital and infrastructure works program including $200 million for a new Western Women and Children’s hospital; $106.3 million for the Casey Hospital expansion; $85 million to redevelop and expand Werribee Mercy Hospital; and $15 million toward a new Victorian Heart Hospital;
  • $86.7 million to resurface regional roads, a further $50.2 million for regional road and rail works, as well as $75.8 million to strengthen regional freight bridges;
  • $220 million toward commencing the Murray Basil Rail project;
  • $124.9 million for corrections facilities infrastructure works;
  • $55.4 million toward the redevelopment of the State Library;
  • $13.4 million to upgrade the Palais Theatre in St Kilda;
  • $11 million to build and upgrade CFA stations and amenities;
  • $15 million to establish a new police station in Mernda;
  • $226 million for community sports clubs and to upgrade stadiums; and
  • $210 million for commencing Stage Two of the Melbourne Convention and Exhibition Centre.

Further information

If you would like to know more about specific projects outlined the Budget or advise us on what you think the State Government’s priorities should be for supporting your business, please provide your comments below.