Federal Budget 2026–27: Key infrastructure and regional development initiatives
15 May 2026
The Australian Government’s 2026–27 Federal Budget delivers a significant package of investment across infrastructure, transport and regional development, with a strong focus on connectivity, housing-enabling infrastructure, freight resilience and regional growth.
Outlined in the Regional Ministerial Budget Statement, the Budget includes new and expanded funding streams designed to support productivity, improve supply chain resilience and strengthen regional communities across Australia.
Among the headline measures is a $10.3 billion commitment to transport infrastructure projects nationwide, alongside an additional $500 million expansion of the Active Transport Fund to support safer and more connected walking and cycling networks. The Budget also includes continued support for nationally significant road and rail upgrades aimed at improving freight efficiency and reducing congestion pressures.
The Government has highlighted a strong focus on resilience and long-term infrastructure planning, including:
- $1.75 billion to improve the productivity, resilience and reliability of Australia’s freight rail network
- Continued investment in safer local roads and transport infrastructure
- Funding initiatives supporting fuel security, freight efficiency and regional supply chains, including a $1.1 billion Cleaner Fuels Program
- Ongoing support for councils through local infrastructure and road funding programs.
Regional Australia features prominently in the Budget, with the Government committing:
- $750 million for new rounds of the Growing Regions Program and Thriving Suburbs Program
- A new $2 billion Local Infrastructure Fund to help unlock housing supply, including $500 million specifically reserved for regional Australia
- Continued investment in regional connectivity and community infrastructure projects.
Queensland infrastructure initiatives also received attention in recent announcements linked to the Budget, including continued investment in Bruce Highway upgrades, Black Spot safety projects and key freight and regional road improvements. Additional funding under the Safer Local Roads and Infrastructure Program will support upgrades that improve road safety, flood resilience and freight productivity across regional communities.
RDA Brisbane Chair Kieren Dell said continued investment in regional infrastructure would be critical to supporting Queensland’s long-term economic sustainability and growth.
“Strong and resilient regional communities rely on sustained investment in the infrastructure that keeps people, industries and supply chains connected. As Queensland continues to grow, ongoing investment in regional infrastructure will remain important to supporting productivity, liveability and long-term sustainability across our regions.”
RDA Brisbane CEO Nicole Duguid added that Regional Development Australia organisations play an important role in ensuring regional priorities remain part of the national conversation.
“RDA Brisbane works closely with industry, government and regional stakeholders to help amplify the voice of our regions and advocate for the infrastructure investment needed to support growing communities and industries. Investments in areas such as the Bruce Highway, freight connectivity and telecommunications infrastructure are essential to ensuring regional Queensland remains connected, competitive and resilient into the future.”
The Budget reinforces the Government’s broader focus on enabling housing growth through infrastructure delivery, improving national freight efficiency and supporting long-term regional economic resilience. For regions such as South East Queensland and Brisbane’s wider economic catchment, these investments are expected to play an important role in supporting population growth, productivity and connectivity ahead of the Brisbane 2032 Olympic and Paralympic Games.
Further information on the 2026–27 Budget and the Regional Ministerial Budget Statement is available from the Australian Government Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts.