In case you haven’t already heard, Victorians will head to the polls in November for the next State Election.

In its final State Budget before the election, the Napthine Government has put forward a range of infrastructure projects worth up to $27 billion.

Projects to receive funding include the second stage of the East West Link road tunnel, a new cross-city train tunnel and dedicated rail link to Melbourne Airport, removal of a host of level crossings, more lanes on the CityLink-Tullamarine corridor, new schools in growth areas and a range of construction projects in regional Victoria.

“Today’s budget is about building a better Victoria and responsible economic management means we can deliver a record infrastructure program that will create jobs, boost productivity and deliver better quality services,” said Treasurer Michael O’Brien.

An unprecedented $7.5 billion will be invested into capital works in 2014-15 alone, up from an expected $5.2 billion in the current financial year.

Mr O’Brien will be providing Master Builders’ members an outline of the State Budget at our next Industry Breakfast. Make sure you book your ticket so that you know how your business can benefit from announcements made in the State Budget.

Master Builders CEO Radley de Silva describes the package of works as “an ambitious infrastructure agenda that will stimulate investment and drive new jobs into Victoria’s construction industry.”

“Today represents a big win for the construction sector, providing a pipeline of major projects that will secure 18,000 jobs,” said Mr de Silva.

“It is vital we build the infrastructure our growing state needs and enshrine Melbourne’s place as the world’s most liveable city.

“Master Builders has been calling for the Victorian Government to address our state’s infrastructure backlog and it’s fantastic to see them stepping up to plate to tackle this issue.

“Victoria is embarking on a capital works program that will deliver Melbourne a world-leading, multi-modal transport network that will be the envy of the country.”

A new tunnel to revolutionise rail services

At the heart of the State Budget is a commitment to build the new Melbourne Rail Link.

With a price tag of up to $11 billion, the project will deliver twin tunnels from Southern Cross to South Yarra, with new underground platforms to be constructed at both stations.

The previous alignment for the project, which ran through the Melbourne CBD underneath Swanston Street, has been abandoned along with the proposed underground station for Parkville’s health and university precinct. Instead, new underground stations will be built at Fishermans Bend (Montague) and Domain along a new tunnel alignment and both will feature train-tram interchanges.

The project also features a new rail link to Melbourne Airport, which when complete, will have services departing Southern Cross Station every 10 minutes during the day. The total journey to the city from the airport is expected to take around 25 minutes.

Construction is expected to take place from 2017 (with early works commencing a year earlier) through to 2026, with passengers beginning to use services on the new lines from around 2023. When works are done, the Melbourne Rail Link project will enable the delivery of 30 additional peak hour services across the network, facilitating the movement of 35,000 extra passengers.

“The Melbourne Rail Link will support the growing office and residential precinct in the west of the CBD and further develop Southern Cross as a transport hub,” said Premier Denis Napthine.

“It will also allow for a future passenger rail extension to Rowville and lay the foundation for improved rail freight links between Dandenong and the Port of Melbourne.”

Other metropolitan rail works

Up to $2.5 billion worth of construction and upgrades will occur along the Cranbourne-Pakenham rail corridor. Chiefly, four level crossings will be removed, one each at: Murrumbeena Road, Murrumbeena; Koornang Road, Carnegie; and Clayton and Centre Roads, Clayton. 

Planning for future level crossing removals will also take place for: Grange Road, Carnegie; Poath Road, Murrumbeena; and Corrigan, Heatherton and Chandler Roads, Noble Park.

Our industry will also be asked to help rebuild stations at Carnegie, Murrumbeena and Clayton, install high-capacity signalling along the corridor and build a new train maintenance depot at Pakenham East.

The Cranbourne-Pakenham corridor project was submitted to government as an unsolicited bid and works are expected to begin next year.

Separate to this project, funding has also been approved in the budget for level crossing removals at: North Road, Ormond; Blackburn Road, Blackburn; Burke Road, Glen Iris; and Main Road, St Albans.

Combined, these projects will result in more than $1 billion being invested in construction works to remove eight level crossings. 

A new $21 million train station at Southland has also been funded to ease congestion at nearby stations and improve access to the Southland Shopping Centre. Major works on this project are scheduled to start in 2015. 

Upgrades to train stations along the Frankston train line will also be funded through a new $115 million package that aims to boost passenger amenity, safety and travel information, signalling, power and maintenance.

East West Link – Stage 2



Funding has also been allocated to the second stage of East West Link, which will eventually provide a new road link from the Eastern Freeway/Hoddle Street interchange through to the Western Ring Road.

This project will ensure Victorians can access a new 18 kilometre, cross-city road connection as an alternative to the heavily congested M1 (Monash-CityLink-West Gate) corridor.

Planning and procurement is underway for the first stage of the East West Link (from the Eastern Freeway through to CityLink at Parkville). Works are due to begin later this year and will be completed by 2019. Early works on the second stage (the connection through to the Western Ring Road) will start by the end of 2015.

The first stage of works will create 3200 jobs while the second stage will generate 3000 jobs during construction. Collectively, the two stages represent up to $18 billion in construction works, making it the largest road building project undertaken in Victoria.

“Our industry is excited about the prospects of delivering another game-changing project for Melbourne that will provide long-term benefits for our community,” said Mr de Silva.

“Congestion chaos caused every time there is an incident or lane closure on the Monash Freeway or West Gate Bridge demonstrates how much our community needs this project.

“East West Link’s western section is a critical missing link in our transport network and will improve ever lengthening cross-city trips, including those undertaken by the builders and tradespeople constructing homes, workplaces, schools and hospitals right across the city.”

Widening the CityLink-Tulla corridor

The State Government has reached an agreement with Transurban to upgrade the CityLink-Tullamarine motorway corridor.

This $850 million project will see extra lanes added in each direction between the Bolte Bridge and the Tullamarine Freeway just north of English Street at Essendon Fields. More lanes will also be provided on the Bolte Bridge itself as well as the eastbound carriageway on the West Gate Freeway between the Bolte Bridge and Power Street.

Around 700 jobs will be created as part of the project, which will also see lane use management, ramp metering, CCTV cameras and variable message signs installed along the route.

Works on the project are expected to take around two years, commencing in early 2015.

Acknowledging that works will cause disruptions for motorists, toll increases for the whole of CityLink will be suspended during the construction period. To minimise exacerbating traffic issues during construction, the majority of works will be planned to take place outside of normal peak periods.

In exchange for the works, the Victorian Government has agreed to allow Transurban to charge tolls for an additional year and truck tolls will increase above and beyond those that exist today.

The State Government has confirmed discussions are also underway with the Federal Government on upgrading the Tullamarine Freeway through to Melbourne Airport. These works are expected to cost a further $250 million.

More new schools and funds to upgrade existing schools

A $500 million package of school works has been funded in the State Budget, with $211 million allocated to build 12 new schools, all except one being located in growth areas such as Epping North, Mernda, Mill Park, Point Cook, Cranbourne South, and Pakenham.

The new schools will be delivered as a Public Private Partnership, with expressions of interest from the private sector to be opened later this year. The government aims to welcome students to the new schools in both 2017 and 2018.

In addition, schools across the state will benefit from a $284 million initiative to modernise and refurbish existing schools, both in regional Victoria and metropolitan Melbourne.

Regional construction projects

The State Government has committed up to $220 million to undertake major country rail freight upgrades and standardise the rail link between Geelong and Mildura in what it is calling its Murray Basin Rail Project.

Immediate upgrades will be undertaken on the Mildura to Maryborough, and Murtoa to Hopetoun rail lines, and will support a further 300 construction jobs.

A range of regional health projects have also been funded in the budget, including $73 million for the Latrobe Regional Hospital, $28 million for Barwon Health-North and $14 million for Boort District Hospital.

New schools have also been funded as part of the $211 million package at North Geelong and Torquay.

Law and order infrastructure will also take place, with funding provided to construct a purpose-built multi-jurisdictional court in Shepparton, a new police station and emergency services hub in Ballarat West and a new 24-hour police station in Echuca.

Once again, road upgrades will be a key focus of building works in regional Victoria. Funds have been allocated to duplicate Princes Highway West between Winchelsea and Colac, duplicate Pioneer Road in Geelong, build the Sand Road interchange on Princes Highway East as well as new overtaking lanes on the highway.

A further $130 million has been allocated for road maintenance projects and restoration across the state.

Residential building

The State Budget has also reaffirmed that stamp duty concessions for eligible first home buyers will increase from its current 40 per cent discount to 50 per cent from September 1.

This will see first home buyers save thousands of dollars on stamp duty for a new home and applies to off-the-plan, newly built and existing homes. For a $200,000 purchase price, first home buyers can save nearly $3200 on stamp duty through this additional concession.

To be eligible, first home buyers must purchase a principal place of residence valued no more than $600,000.

Master Builders will continue to advocate for measures that will support housing affordability, including cutting red tape out of the planning system, encouraging councils to make more sensible, timely planning decisions and requiring tradespeople to be registered. 

Got a question?

Want to know more about specific projects in the State Budget? Leave us a comment on this page and we will get back to you.

You can let us know what you think should be the State Government’s priorities to support you and your business in our comments section, which we will use as we prepare to lobby both sides of politics in the lead up to the next election.