About innovative funding and financing

The Australian Government is continually working to deliver greater value for money for Australians, including in the provision of vital transport infrastructure. Traditionally, the Australian Government has focused on funding transport infrastructure in partnership with States and Territories as they are well-placed to deliver these important projects. To ensure the vital connections for communities and industries who rely on our road and rail networks, the Australian Government is also developing an expanded and more proactive approach to the funding, financing and delivery of transport infrastructure. As a more active and informed investor, the Australian Government aims to deliver better value for money and more timely delivery for vital infrastructure.

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
  • wider application of user charging.

This approach is helping deliver nation‑shaping projects such as the WestConnex road upgrades, the new Western Sydney Airport and the Inland Rail project. In February 2022, the Australian Government established the National Intermodal Corporation to support the planning, delivery and operation of the Government’s significant investment in new state-of-the-art intermodal terminals across Australia’s east coast.

These commitments are helping deliver infrastructure more efficiently, obtain greater value from investments and provide more opportunities for private sector involvement in projects.

The Department also works closely with the Infrastructure and Commercial Advisory Office (ICA) and Infrastructure Australia (IA).

The ICA assists the Government on infrastructure and commercial investments, providing independent services to all Australian Government agencies, including:

  • commercial and financial advisory services
  • program management services
  • capability building.

IA provides independent infrastructure research and advice on investments and reforms.

More information:

Principles for innovative financing

The Principles set out the Australian Government's goals for its substantial investment in Australia's land transport infrastructure, including its expectations on how projects are selected and how alternative funding and financing decisions are considered.

The Government will continue to work with state and territory governments to ensure these principles are put into practice when developing, prioritising and delivering the infrastructure Australia needs.