Department of Infrastructure and Regional Development

Section 2: Outcomes and planned performance

2.1: Outcomes and performance information (continued)

Outcome 1: Improved infrastructure across Australia through investment in and coordination of transport and other infrastructure.

Outcome 1 Strategy

Outcome 1 is delivered through the following programme:

1.1 Infrastructure investment

Infrastructure investment will support economic productivity across Australia through investment in and coordination of transport and other infrastructure. The Department will work with states and territories on transport planning to inform future investment priorities.

During 2014–15 and the forward years, the Department will:

  • contribute to improved transport infrastructure decision-making and delivery through sound management and partnered decision-making with other jurisdictions, including through undertaking cost estimate, assurance and compliance reviews;
  • advise on potential projects to be funded under the Infrastructure Investment Programme; and
  • advise on transport planning and potential projects to inform future infrastructure investment.

Major initiatives during 2014–15, which will continue into the forward years, include:

  • implementing and delivering a range of land transport investment administered items as part of the Infrastructure Investment Programme, and through the Australian Government equity investment in the Australian Rail Track Corporation and the Moorebank Intermodal Company Limited;
  • developing a programme of works for land transport infrastructure priorities for funding under the Infrastructure Investment Programme from 2014–15;
  • working with the Australian Rail Track Corporation on the delivery of Inland Rail as well as providing secretariat services to Inland Rail Implementation Group;
  • implementing the national land freight and ports initiatives; and
  • continuing work on national transport planning including, in consultation with the eastern states and the ACT, consideration of the role which high speed rail could play—as part of a range of options, across transport modes—in addressing long term transport challenges.

During 2014–15 Infrastructure Australia's work programme will include:

  • expanding the national infrastructure pipeline;
  • developing the fifteen year infrastructure plan for Australia;
  • auditing Australia's current asset base;
  • identifying the critical infrastructure investment required in northern Australia;
  • developing infrastructure financing reforms;
  • pursuing water reform;
  • implementing the national ports and the national land freight initiatives;
  • implementing the tax loss incentive for designated infrastructure projects; and
  • gaining agreement to a new framework for prioritising remote Indigenous infrastructure.

Outcome 1 expense statement

Table 2.1 provides an overview of the total expenses for Outcome 1, by programme.

Table 2.1: Budgeted expenses for Outcome 1

Contributions to Outcome 1

Programme 1.1: Infrastructure investment
Programme 1.1 Objective

The infrastructure investment programme contributes to Outcome 1 by increasing the efficiency and safety of Australia's land transport infrastructure whilst strengthening the Australian economy. This is accomplished through the provision of policy advice to the Australian Government, the delivery of a suite of administered items, and the work undertaken by Infrastructure Australia, supported by the Office of the Infrastructure Coordinator.

Components of Programme 1.1:
  1. Raising the standard of land transport infrastructure
The economic and social outcomes for all Australians depend upon the land transport networks available to them. The Department manages the programmes of the Australian Government's significant investment in improving infrastructure for land transport operations. The Australian Government's future infrastructure investment is planned around meeting Australia's changing transport needs.
  1. Infrastructure policy initiatives
Infrastructure-related policy advice covers a range of infrastructure matters including infrastructure priorities, regulatory barriers, and improved planning regimes, along with support and input to COAG priorities and reforms.
In administering the Infrastructure Investment Programme, the Department's role is to ensure delivery of the Australian Government's infrastructure priorities in the land transport area.
  1. Infrastructure funding
The Department provides advice to the Australian Government on financing and implementation of infrastructure investment. This includes advice on Public Private Partnerships (PPPs), patronage risk, alternative financing and procurement options. To foster development of Australia's construction market, the Department established the National Infrastructure Construction Schedule in 2012.
  1. Remedial road projects to improve safety and productivity
The Department manages the Black Spot projects administered item which focuses on treating high-risk sites to reduce the number and severity of road crashes. Funding is provided to jurisdictions for road maintenance and the Department is implementing the Heavy Vehicle Safety and Productivity projects to improve the safety and productivity of heavy vehicle operations across Australia.
  1. Increasing the ability of local councils to improve land transport infrastructure
The Department manages the Roads to Recovery programme which provides funding to local councils to improve transport infrastructure.
  1. Major Projects Facilitation
The Department provides a Major Project Facilitation service that assists strategically significant private sector projects to obtain coordinated decisions on necessary Australian Government approvals and identifies any impediments to the investment proceeding. The service is tailored to suit each project, drawing on the Department's knowledge and experience of government processes.
  1. Driving a national strategy to guide policy and investments in Australia
The Department works with states and territories to ensure that long term planning articulates nationally significant infrastructure planning and policy settings which in turn drive greater productivity, sustainability and liveability outcomes.
  1. I nfrastructure Australia
Infrastructure Australia provides advice on nationally significant infrastructure and urban systems which promote Australia's productivity, with particular focus on the quality and efficiency of transport, water, energy and communication infrastructure, and the development and liveability of major cities across Australia.
This advice will be prepared in collaboration with the Department, other federal agencies, state and local governments, industry and the community.

Administered items
  • Infrastructure Investment Programme1
    • Investment2
    • Black Spot Projects2
    • Heavy Vehicle Safety and Productivity2
    • Roads to Recovery
    • Off-Network Projects2
    • Off-Network— supplementary
    • Improving the National Network2
  • Infrastructure Growth Package
    • New Investments2
    • Black Spot Projects2
    • Roads to Recovery
    • WestConnex Stage 2- provision of a concessional loan
    • Western Sydney Infrastructure Plan2
  • Plan for the Future3
  • Bridges Renewal Programme
  • Jobs Fund— Infrastructure Employment Projects
  • Sustainable Australia—Liveable Communities2
  • Sustainable Australia— National Smart Managed Motorways2

Notes:

  1. The Infrastructure Investment Programme was previously named the AusLink Programme.
  2. The Department of the Treasury is appropriated for payments to and through states and territories for National Partnership payments. Further information on these programmes can be found in Budget Paper 3 or the Treasury's Portfolio Budget Statements (Programme 1.10).
  3. The Plan for the Future item was previously named AusLink Plan for the Future.
Programme 1.1 Expenses

The changes in expenses from 2013–14 to 2014–15 is due mainly to the current funding profile of the Infrastructure Investment Programme and the Plan for the Future administered items.
2013–14
Estimated
actual
$'000
2014–15
Budget

$'000
2015–16
Forward
estimate
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
Annual administered expenses1,2          
Infrastructure Investment Programme 750,418 555,160 491,000 486,000 452,500
—Investment3 65,590 42,500 51,000 36,000 42,500
—Roads to Recovery 373,526 350,000 350,000 350,000 350,000
—Off-Network Projects3 303,790 162,660 90,000 100,000 60,000
—Off-Network Supplementary 7,512 - - - -
Bridges Renewal Programme - 60,000 60,000 60,000 60,000
Jobs Fund—Infrastructure Employment Projects 2,104 - - - -
Sustainable Australia—Liveable Communities3 4,430 - - - -
WestConnex Stage 2—provision of a concessional loan - - 96,610 344,526 314,888
Special Account expenses          
Plan for the Future (Building Australia Fund Infrastructure Portfolio Special Account)4,5 1,198,990 379,100 232,100 - -
Infrastructure Growth Package—Roads to Recovery (Asset Recycling Fund Special Account)6 - - 350,000 - -
Programme support 46,130 48,912 45,086 42,491 41,223
Total programme expenses 2,002,072 1,043,172 1,274,796 933,017 868,611

Notes:

  1. The Infrastructure Investment Programme was previously named the AusLink Programme.
  2. Excludes expenses relating to payments made to and through the states and territories by the Department of the Treasury for the Infrastructure Investment Programme (Black Spot Projects and Heavy Vehicle Safety and Productivity), Infrastructure Growth Package (New Investments, Black Spot Projects and Western Sydney Infrastructure Plan) and Sustainable Australia—National Smart Managed Motorways administered items. Also excludes expenses relating to prepayments reported by the Treasury associated with prior year payments made to and through the states and territories for the Improving the National Network administered item.
  3. Excludes expenses relating to payments made to and through the states and territories by the Department of the Treasury.
  4. Expenses relate to funds transferred from the Special Account to the Department of the Treasury for payments to and through the states and territories for Building Australia Fund infrastructure projects.
  5. The Plan for the Future item was previously named AusLink Plan for the Future.
  6. The Asset Recycling Fund Special Account is still to be established.
Programme 1.1 Deliverables

The following deliverables represent the goods and services produced and delivered by the programme in meeting its objective.
Deliverables Year Target
1. Collaboration with state, territory and local governments to plan and evaluate land transport investments consistent with Australian Government priorities. 2013–14 Revised Budget Ongoing—refer to 2014–15 Budget target.
2014–15 Budget States report monthly on progress of investments.
2015–16 Forward year 1 Ongoing—refer to 2014–15 Budget target.
2016–17 Forward year 2 Ongoing—refer to 2014–15 Budget target.
2017–18 Forward year 3 Ongoing—refer to 2014–15 Budget target.
2. Deliver the administered items in cooperation with state, territory and local governments. 2013–14 Revised Budget Ongoing—refer to 2014–15 Budget target.
2014–15 Budget Payout of 100% funding for project progress.
2015–16 Forward year 1 Ongoing—refer to 2014–15 Budget target.
2016–17 Forward year 2 Ongoing—refer to 2014–15 Budget target.
2017–18 Forward year 3 Ongoing—refer to 2014–15 Budget target.
3. Number of funding recipients receiving Roads to Recovery funding. 2013–14 Revised Budget Ongoing—refer to 2014–15 Budget target.
2014–15 Budget 570 recipients receive funding.
2015–16 Forward year 1 Ongoing—refer to 2014–15 Budget target.
2016–17 Forward year 2 Ongoing—refer to 2014–15 Budget target.
2017–18 Forward year 3 Ongoing—refer to 2014–15 Budget target.
4. Efficient and effective oversight of the Australian Government's interest in the Australian Rail Track Corporation (ARTC) and the Moorebank Intermodal Company Limited. 2013–14 Revised Budget Ongoing—refer to 2014–15 Budget target.
2014–15 Budget Timely advice to the Australian Government on performance and an orderly transition to governance and oversight arrangements under the Public Governance, Performance and Accountability Act 2013 from 1 July 2014.
2015–16 Forward year 1 Ongoing—refer to 2014–15 Budget target.
2016–17 Forward year 2 Ongoing—refer to 2014–15 Budget target.
2017–18 Forward year 3 Ongoing—refer to 2014–15 Budget target.
5. Identified integrated urban and regional infrastructure priorities. 2013–14 Revised Budget Ongoing—refer to 2014–15 Budget target.
2014–15 Budget Implement agreed actions.
2015–16 Forward year 1 Ongoing—refer to 2014–15 Budget target.
2016–17 Forward year 2 Ongoing—refer to 2014–15 Budget target.
2017–18 Forward year 3 Ongoing—refer to 2014–15 Budget target.
6. Analysis and prioritisation of infrastructure projects and reform initiatives. 2013–14 Revised Budget Ongoing—refer to 2014–15 Budget target.
2014–15 Budget Recommendations considered by Australian governments.
2015–16 Forward year 1 Ongoing—refer to 2014–15 Budget target.
2016–17 Forward year 2 Ongoing—refer to 2014–15 Budget target.
2017–18 Forward year 3 Ongoing—refer to 2014–15 Budget target.
7. Infrastructure Australia's remote Indigenous infrastructure framework. 2013–14 Revised Budget Ongoing—refer to 2014–15 Budget target.
2014–15 Budget Recommendations considered by Australian governments.
2015–16 Forward year 1 Ongoing—refer to 2014–15 Budget target.
2016–17 Forward year 2 Ongoing—refer to 2014–15 Budget target.
2017–18 Forward year 3 Ongoing—refer to 2014–15 Budget target.
8. Tax loss incentive for designated infrastructure projects. 2013–14 Revised Budget Ongoing—refer to 2014–15 Budget target.
2014–15 Budget Incentive implementation.
2015–16 Forward year 1 Ongoing—refer to 2014–15 Budget target.
2016–17 Forward year 2 Ongoing—refer to 2014–15 Budget target.
2017–18 Forward year 3 Ongoing—refer to 2014–15 Budget target.
9. Efficient and effective management of administered items. 2013–14 Revised Budget Ongoing—refer to 2014–15 Budget target.
2014–15 Budget Items are administered in accordance with relevant legislation, published guidelines and ANAO guidance.
2015–16 Forward year 1 Ongoing—refer to 2014–15 Budget target.
2016–17 Forward year 2 Ongoing—refer to 2014–15 Budget target.
2017–18 Forward year 3 Ongoing—refer to 2014–15 Budget target.
Programme 1.1 Key performance indicators

The following key performance indicators, addressing key features of the programme, measure the effectiveness of the programme in meeting its objective.
Key performance indicators Year Target
1. Australian land transport networks are safer. 2013–14 Estimated actual Ongoing—refer to 2014–15 Budget target.
2014–15 Budget Projects that improve road and rail safety are delivered.
2015–16 Forward estimate Ongoing—refer to 2014–15 Budget target.
2016–17 Forward estimate Ongoing—refer to 2014–15 Budget target.
2017–18 Forward estimate Ongoing—refer to 2014–15 Budget target.
2. Australian land transport networks are more efficient. 2013–14 Estimated actual Ongoing—refer to 2014–15 Budget target.
2014–15 Budget Projects that improve road and rail productivity are delivered.
2015–16 Forward estimate Ongoing—refer to 2014–15 Budget target.
2016–17 Forward estimate Ongoing—refer to 2014–15 Budget target.
2017–18 Forward estimate Ongoing—refer to 2014–15 Budget target.
3. States, territories and local governments are appropriately funded for network and off–network projects. 2013–14 Estimated actual Ongoing—refer to 2014–15 Budget target.
2014–15 Budget Payments are within 5% of forecast.
2015–16 Forward estimate Ongoing—refer to 2014–15 Budget target.
2016–17 Forward estimate Ongoing—refer to 2014–15 Budget target.
2017–18 Forward estimate Ongoing—refer to 2014–15 Budget target.
4. Infrastructure and urban system initiatives are promoted in order to maximise economic development and productivity. 2013–14 Estimated actual Ongoing—refer to 2014–15 Budget target.
2014–15 Budget Initiatives endorsed by Australian governments.
2015–16 Forward estimate Ongoing—refer to 2014–15 Budget target.
2016–17 Forward estimate Ongoing—refer to 2014–15 Budget target.
2017–18 Forward estimate Ongoing—refer to 2014–15 Budget target.
5. Integrated infrastructure and urban system priorities are identified to address the local, regional and national needs of Australians. 2013–14 Estimated actual Ongoing—refer to 2014–15 Budget target.
2014–15 Budget Initiatives endorsed by Australian governments.
2015–16 Forward estimate Ongoing—refer to 2014–15 Budget target.
2016–17 Forward estimate Ongoing—refer to 2014–15 Budget target.
2017–18 Forward estimate Ongoing—refer to 2014–15 Budget target.

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Budget 2014-15