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Funding and financing

About funding and financing

The Australian Government is focusing on becoming a more informed investor to generate greater value for money for its infrastructure investment. This includes moving beyond the Government's traditional role of simply a transport infrastructure provider of funding for new projects.

As part of this policy, the Government is undertaking earlier engagement in the development of projects that it considers have national significance. The Government is also identifying and pursuing ways to deliver infrastructure through more innovative funding and financing methods. The Government considers a range of mechanisms when considering innovative funding and financing, including:

  • Concessional loans;
  • Guarantees;
  • Phased grants and availability payments;
  • Equity injections;
  • Value capture; and (hyperlink to value capture page)
  • Wider application of user charging.

The Department of Infrastructure and Regional Development continues to be responsible for supporting the Government in this work when considering transport infrastructure projects, but to help expand the Commonwealth's capacity to undertake detailed financial assessments, the Government has also established the Infrastructure and Project Financing Agency (IPFA), which commenced operation on 1 July 2017. IPFA will help the Government identify new financing solutions and provide advice on implementation, including for projects outside transport sector. Further details can be found on their website.