A new federal funding split has not gone over smoothly. 

State and territory governments are intensifying opposition to Federal Infrastructure Minister Catherine King's efforts to renegotiate a land transport funding deal, placing its future in doubt. 

The proposed changes to the Commonwealth's contribution towards major road and rail projects have met with resistance from several states, leading to accusations of mismanagement.

The Federal Funding Agreement, originally secured by the Morrison government in 2019, expired in June. 

Since late last year, Ms King has reportedly sought to shift the funding split from 80:20 in favour of the states to a 50:50 arrangement. 

While South Australia, the ACT, and Queensland support the change, New South Wales, Victoria, Tasmania, and Western Australia oppose it.

Western Australia’s Deputy Premier Rita Saffioti argues the change would place significant financial strain on state budgets, especially for regional projects. 

Tasmania’s Treasurer Michael Ferguson welcomed the federal government’s recent removal of the 50:50 clause, calling it a “back-down” that protects regional infrastructure investment.

Federal Opposition infrastructure spokesperson Bridget McKenzie has described the situation as a “shambles” and accused the government of misleading parliament about the deal’s progress.

More details are accessible here.

CareerSpot This email address is being protected from spambots. You need JavaScript enabled to view it.