Who benefits most from Budget infrastructure bonanza?

Property and infrastructure are complementary. No one likes congestion, whether you are trying to get to work or move freight.

Long travel times drag down productivity and lead to lower social outcomes. In this year’s election-friendly budget, infrastructure was a big focus with $24.5 billion earmarked for new national significant transport projects.

There will, however, be some bigger winners than others.

Regional Australia

Melbourne to Brisbane Inland Rail funding was announced last budget but regional Australia continues to be a focus.

Almost $1 billion was announced for the Coffs Harbour Bypass, improving access for tourists driving up north for holidays but also freight movers transporting goods from Sydney to Brisbane. In the Northern Territory, $280 billion has been set aside for regional road projects while improvements to Outback Way which runs from Laverton in Western Australia to Winton in Queensland will cost an additional $160 million.

Air services will also get a boost in regional areas with a further $28.3 million in a further three rounds of funding for the Remote Airstrip Upgrade.

Western Sydney

All roads lead out west in Sydney and the budget includes measures to ensure that connectivity to this region continues to improve.

Funding includes up to $50 million towards the development of a business case for Western Sydney Rail. This is in addition to major projects already underway including the Western Sydney Airport, the WestConnex Project and the Western Sydney Infrastructure Plan.

Victorian airports

Avalon Airport to the west of Melbourne was the airport most directly impacted by the budget with $20 million set aside to establish international services.

For Melbourne Airport, it was a focus on better rail services. Better public transport impacts the dollars our airports get from parking but it does allow better access and there continues to be greater measures to ensure quick transit. The Melbourne Airport Rail Link was provided $5 billion of funding.

Geelong

Things just keep getting better in Geelong. Not only will international flights soon be a reality from Avalon thanks to $20 million in funding in the Budget, but $50 million was announced to support the duplication of the Geelong Rail Link between South Geelong and Waurn Ponds.

Geelong has seen a big jump in popularity on realestate.com.au, particularly from first home buyers and these moves will lead to even greater desirability.

Western Australia

The WA economy has been doing it tough and there were a large number of projects announced in the budget to improve road and rail.

The biggest item was an additional $1.1 billion for the Metronet projects including new lines and new train stations. The Tonkin Highway and Bunbury Outer Ring Road were also beneficiaries.

Congestion

Melbourne is consistently ranked as the World’s Most Liveable City by the EIU however when it comes to our research last year into Australia’s most liveable suburbs, Melbourne was trumped by Brisbane suburbs because of travel times.

This issue has been recognised in this year’s budget with $1 billion in funding to establish an Urban Congestion Fund to improve commuter and freight movements in regional areas.

– Nerida Conisbee is chief economist for REA Group