May 2026
Changes to the tax system dominated the news around the budget, but there were plenty of announcements on the transport front.
The largest transport investment is the Strengthening Australia’s Fuel Resilience package. This is a range of different measures, but a key outcome is Australia's petrol stockpile will increase to about 37 days, while diesel and jet fuel will be about 50 days. At the moment, refiners and importers are required to store between 20 and 32 days, depending on the type of fuel.
The Federal Government says the budget includes new funding for major road and rail projects:
- $3.8 billion for the Suburban Rail Loop in the eastern suburbs of Melbourne.
- $1.75 billion for upgrades to the national freight rail network.
- $812.5 million to deliver Stage 2 of the Bruce Highway – Gateway Motorway to Dohles Rocks Road, connecting Moreton Bay and the Sunshine Coast growth areas to Brisbane’s north.
- $659.6 million over three years from 2025–26 for the High Speed Rail Authority to undertake development works from Newcastle to Sydney.
- $552 million to deliver the first stages of the Anketell Road Upgrades in the southern suburbs of Perth.
- $50 million for upgrades to the Sydney to Canberra rail corridor and development of a business case for longer-term initiatives.
Also notable in this context is what the budget does not fund. A looming cost blowout of $45 billion has seen the Government cut Inland Rail – the plan for faster, high-capacity freight trains with double-stacked containers between Melbourne and Brisbane. The works will only be completed from Melbourne to Parkes in NSW for the foreseeable future. However, the government has said they will still look to preserve the rail corridor north of Parkes, as well as protecting sites for future Inland Rail intermodal terminals in Queensland.
In the context of rising fuel prices the heavy vehicle road user charge has been temporarily reduced to zero, providing immediate financial relief to truck operators.
Unsurprisingly, the package of measures has been greeted enthusiastically by the freight industry, although some regional interests are lamenting the scale back of Inland Rail.
TPA is pleased to see a commitment to invest $500 million over 10 years in a walking and riding infrastructure fund. This reflects advocacy by TPA and other organisations over a number of years, led by WeRide.
We were very happy to collaborate with WeRide to conduct a Parliamentary breakfast to promote action on transport decarbonisation and active transport. This was headlined by Lee Waters, former Transport Minister in the Welsh Parliament, and renowned UK Transport Planner Phil Jones, who both came to Australia for our conference in 2024. TPA’s budget submission recommended investment in active travel.
The annual level of investment – $50m a year – is not particularly impressive in the general scheme of transport funding. But a long-term commitment is valuable, given that walking and cycling has often not been seen as part of the federal government role. This gives confidence to states and territories that funding will be available year on year, to support a pipeline of projects.
The transport profession should lend our voice to ensure this is only the beginning, and future budgets bring a higher level of support for walking and bike riding.
One measure that will be highly welcomed by many in the profession is $43 million for Standards Australia to fund free public access to standards incorporated in legislation. It is estimated that this will save $1,600 per year for businesses that currently pay for access.
The budget includes $2 billion for local councils and state utility providers to expedite the delivery of housing enabling infrastructure. TPA note that the location of land for housing will be key – it should be well located and supported by public and active transport connections and access to services and employment. Transport professionals must play a vital role in ensuring housing is directed to locations that are able to be well served, to ensure that new residents have access to public transport and quality active transport links from day one.
The Australian Local Government Association (ALGA) welcomed the growth areas funding, but noted “…councils have not been given the same support to meet local community needs through secure untied funding, and in fact support through Financial Assistance Grants has gone backwards as a share of Commonwealth taxation revenue.”
Finally, Engineers Australia has welcomed the Government’s focus on improving the efficiency of the migration system, seeking to cut up to six months from the time it takes for overseas professional qualifications and trade licences to be recognised. They note that migrants, many of whom studied in Australian schools and universities, make up more than two‑thirds of Australia’s engineering workforce.
Read our Pre-Budget Submission here: Submissions & Advocacy