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Victoria\u2019s push for more federal cash to bankroll the Suburban Rail Loop has been given a boost after Infrastructure Australia\u2019s priority list said the Commonwealth should consider additional investment in the first stage of the project.<\/p>\n
The finding is not an endorsement of SRL East\u2019s business case, which the agency previously raised major concerns with, but does provide a platform for Prime Minister Anthony Albanese to deliver on his commitment to put more cash into the project<\/a>.<\/p>\n SRL East, an underground rail line from Cheltenham to Box Hill, has already received $2.2 billion in Commonwealth funding quarantined for \u201cno regrets\u201d spending, such as land acquisition and utilities upgrades.<\/p>\n But Victoria wants the federal government to pay a third of the project\u2019s $34.5 billion price tag, leaving a shortfall of $9.3 billion. Albanese has pledged more money in the May federal budget, but has not publicly confirmed how much his government will contribute.<\/p>\n On Wednesday, Infrastructure Australia released its priority list to guide the federal government on investing in projects over the short, medium and long term.<\/p>\n The list not only reflects the merits of a project, but whether it is ready for funding.<\/p>\n For SRL East, Infrastructure Australia\u2019s list said that in the short term, the Commonwealth \u201cshould consider prioritising this proposal for additional delivery investment\u201d beyond the $2.2 billion already committed.<\/p>\n The report does not necessarily guarantee federal government funding, which must be signed off by federal cabinet\u2019s expenditure review committee.<\/p>\n But it does provide the Commonwealth with greater justification for a cash injection, almost a year after Infrastructure Australia\u2019s last evaluation of the project recommended no further federal funding<\/a> until SRL East had an updated cost estimate and the state government explained how it planned to fund a third of the project through so-called value capture levies.<\/p>\n Related Article \u201cBased on the information provided, we have low confidence in the cost estimate for SRL East, presenting a major risk to the SRL East project, and the SRL Program as a whole,\u201d the agency said at the time.<\/p>\n Since then, the Victorian government has provided the Commonwealth with additional information and released its value capture plan, and the conversation has now moved on to how much funding should be in the budget.<\/p>\n Victorian Suburban Rail Loop Minister Harriet Shing said she was looking forward to the outcome of these discussions.<\/p>\n \u201cHere in Victoria, we\u2019ve only ever had one position on the Suburban Rail Loop, that is that we\u2019re building it,\u201d she said.<\/p>\n Shing said Infrastructure Australia did not make decisions, but rather advised the government, and its report confirmed the project was ready for investment and would deliver on national infrastructure strategies to cater for population growth.<\/p>\n Infrastructure Australia chief executive Adam Copp said the problem the project was trying to solve \u2013 the need for greater transport connectivity across Melbourne\u2019s middle and outer suburbs \u2013 had been on their priority list since 2022.<\/p>\n \u201cIt\u2019s a growing city, it will be as big as New York and connecting, through a high-capacity transport system, those outer suburbs we have recognised for a long time,\u201d he said.<\/p>\n \u201cStrategically, something like it is needed. Tactically, we had some feedback around the costs, the value capture approach and needing more detail, and having that to be more rigorous.<\/p>\n \u201cBut we are saying it is a good meritorious investment for the Commonwealth going forward.\u201d<\/p>\n The next stages of the project, proposed in Melbourne\u2019s north and west, also appeared on the priority list for investment consideration five to 10 years from now.<\/p>\n Opposition transport infrastructure spokesman Evan Mulholland said SRL East still had a multi-billion dollar funding black hole and its costings had been discredited.<\/p>\n \u201cWhilst Labor continues to prioritise a new train line for Melbourne\u2019s south-east, communities in our growth areas and regions continue to be starved of the basics they deserve,\u201d he said.<\/p>\n \u201cA future Liberal and Nationals government will pause and review the Cheltenham to Box Hill rail line to ensure the best interests of Victorian taxpayers are prioritised.\u201d<\/p>\n On Monday, The Age revealed a previously undisclosed $1.7 billion contract<\/a> had been signed with the government to run and maintain the eastern section of the train line \u2013 when it opens in 2035.<\/p>\n Related Article If the project were abandoned, the full cost of the contract would have to be paid out, unlike other construction contracts, which are tied to how much work has been completed.<\/p>\n Infrastructure Australia also recommended upgrades to rail lines in Melbourne\u2019s north and western suburbs as a funding opportunity over the next two to four years.<\/p>\n \u201cTargeted upgrades to the Wyndham Vale and Melton rail line would enable the existing network to better accommodate growing passenger demand in Melbourne\u2019s west,\u201d the priority report says.<\/p>\n In the north, required upgrades on the Craigieburn, Upfield and Seymour rail lines include the electrification of railways in targeted growth areas, higher-capacity trains, level crossing removals and new stations.<\/p>\n The independent agency also said more desalination plants may be needed<\/a> to ensure major cities do not run out of drinkable water.<\/p>\n A $22 million water system upgrade in Werribee was recommended.<\/p>\n \u201cOne of the biggest barriers to housing is water and having appropriate water and wastewater, we\u2019ve got climate change and we\u2019ve got ageing assets in the ground,\u201d Copp said.<\/p>\n Get the day\u2019s breaking news, entertainment ideas and a long read to enjoy. Sign up to receive our Evening Edition newsletter.<\/a><\/p>\n Save<\/p>\n You have reached your maximum number of saved items.<\/p>\n Remove items from your saved list<\/a> to add more.<\/p>\n![\"A](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/03\/eca7239f43893614788672e155467f3301dec245.jpeg\")
A construction site for the Suburban Rail Loop in Clayton.SRLA<\/p>\n![\"The](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/03\/f0f42010ab4dffcf9a536328d3c062714a71e3b3.png\")
The proposed Suburban Rail Loop. Supplied<\/p>\n![\"A](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/03\/de0a7f2d8308de5627de478bdd252fceac0f4245.jpeg\")
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Shane Wright<\/a> is a senior economics correspondent for The Age and The Sydney Morning Herald.Connect via X<\/a> or email<\/a>.From our partners<\/p>\n","protected":false},"excerpt":{"rendered":"March 11, 2026 \u2014 7:45pm Save You have reached your maximum number of saved items. Remove items from…\n","protected":false},"author":2,"featured_media":532994,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[64,63,44],"class_list":["post-532993","post","type-post","status-publish","format-standard","has-post-thumbnail","category-australia","tag-au","tag-australia","tag-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/532993","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=532993"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/532993\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/532994"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=532993"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=532993"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=532993"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}