Morrison Government invests $1.1 billion in transport infrastructure to boost Victorian economic recovery

The Victorian economy will be boosted, roads will be safer and thousands of jobs created, with a $1.1 billion investment into transport infrastructure from the Federal Coalition as part of our COVID-19 economic recovery plan.

The latest funding injection builds on a series of statewide infrastructure investments from the Commonwealth in responding to the COVID-19 pandemic which now total nearly $1.6 billion.

Key investments for Victoria include $320 million for the Shepparton Rail Line Upgrade; $208 million for Stage 2 of the Warrnambool Rail Line Upgrade; $292 million for the Barwon Heads Road Upgrade; and $85 million to upgrade Hall Road in Cranbourne.

Work on Stages 2 and 3 of the South Geelong to Waurn Ponds Rail Upgrade will also be accelerated with $605 million brought forward into the forward estimates.

Prime Minister Scott Morrison said Tuesday’s Federal Budget would deliver funding for infrastructure which supports the Government’s JobMaker plan and help Victoria recover from COVID-19.

“We have been working closely with state and territory governments to invest in the infrastructure that is ready to go and can help rebuild our economy and create more jobs,” the Prime Minister said.

"These projects will keep commuters safe on the road, get people home to their loved ones sooner and provide better public transport links for urban and regional communities.”

“As part of the COVID-19 economic recovery plan we have invested nearly an additional $1.6 billion focused on shovel-ready projects across the state.

“This latest investment will provide another boost to the local economy and is part of our plan to support an estimated 3,850 direct and indirect jobs across the state.”

Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development Michael McCormack said the benefits of the spending on infrastructure went beyond these projects.

“Infrastructure means jobs, it means livelihoods, it means stronger local communities and it means building a better and more secure future for our nation,” the Deputy Prime Minister said.

Treasurer Josh Frydenberg said the Government is focused on delivering priorities and boosting local jobs as part of Australia’s road to recovery.

"Infrastructure helps to create jobs and to get people where they want to go sooner and safer and unlocks the potential of our regions," the Treasurer said.

"These commitments will help to get the Victorian economy moving when restrictions are eased."

Minister for Population, Cities and Urban Infrastructure Alan Tudge said the Government’s infrastructure package for Victoria would help the state economy claw its way back and provide certainty for business over the long term.

“This Government recognises the pain many Victorians are going through and we know that jobs and economic stimulus through targeted infrastructure are what is needed right now,” Mr Tudge said.

“Key investments across Victoria include a major new injection in faster, more reliable regional passenger rail services, with an additional $320 million to deliver Stage 3 of the Shepparton Rail Line Upgrade, along with $208 million for Stage 2 of the Warrnambool Rail Line Upgrade.”

“The Australian Government will continue to invest in the Victorian economy in the coming years, through projects such as $292 million for congestion-busting upgrades to Barwon Heads Road and a further $85 million for upgrades to Hall Road in Cranbourne.”

Since being elected in 2013 the Liberal and Nationals Government have committed more than $31.5 billion for infrastructure in Victoria.


Media Contacts:

Prime Minister’s office: Press Office, (02) 6277 7744

Deputy Prime Minister’s office: Jo Williamson 0418 475 668

Treasurer’s office: Leanne Jones 02 6277 7340

Minister Tudge’s office: Michael Bennett 0434 782 923


Victoria – 2020-21 Budget Programs


New projects




Total Cost

Arthurs Seat Pedestrian Improvements

$0.3 million

$0.3 million

Barwon Heads Road Upgrade

$292 million

$365 million

Hall Road Upgrade

$84.5 million

$169 million

Improving connectivity to Port of Melbourne - Business Case

$7.5 million

$15 million

Improving Passenger Rail Services from Northern Victoria to Melbourne

$7.5 million

$15 million

Narre Warren North Road Upgrade

$31 million

$62 million

Shepparton Rail Line Upgrade – Stage 3

$320 million

$400 million

South Road Upgrade

$22.5 million

$45 million

Warrnambool Rail Line Upgrade – Stage 2

$208 million

$260 million

Western Port Highway Upgrade

$27.2 million

$54.3 million

Western Rail Plan - Further Planning

$30 million

$60 million





Additional funding



Additional Federal

Total Federal

Bonang Road Upgrade, Bonang

$7 million

$9 million

McKoy Street - Hume Freeway Intersection Upgrade

$104 million

$168 million

Subtotal                                                                          $111 million                                                                            $177 million


Total new funding

$1141.5 million