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Innovative funding and financing

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 who 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 Melbourne to Brisbane Inland Rail project. In February 2022, the Australian Government established the National Intermodal Company 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. To deliver the Australian Government’s focus on long term infrastructure development for job creation, productivity and growth the Significant Projects Investment Delivery Office works across the whole infrastructure ecosystem to seek opportunities to evolve our country's investment in infrastructure.

For more information on the Significant Projects Investment Delivery Office please visit the website.

The Department also works closely with the Infrastructure and Project Financing Authority (IPFA) and Infrastructure Australia (IA).

IPFA assists the Government to identify new financing solutions and provides advice on implementation, including for projects outside the transport sector. 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 and its expectations on how projects are selected and 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.