Innovative funding and financing
As part of its focus on delivering greater value for money for Australians, the Australian Government has moved beyond the Government's traditional role of simply a transport infrastructure provider of funding for new projects to be an active, informed investor.
From 2019-20, the Government will invest over $13 billion through innovative financing options, such as concessional loans and equity injections. 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.
These commitments are helping deliver infrastructure more efficiently, return greater value for investment and provide more opportunities for private sector involvement in projects. The Government considers a range of mechanisms when considering innovative funding and financing, including:
- concessional loans
- phased grants and availability payments
- equity injections
- value capture
- wider application of user charging.
To expand the Commonwealth's capacity to undertake detailed financial assessments, the Government established 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 the transport sector.
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.
- Principles for Innovative Financing PDF: 413 KB