Federal Budget 2005-06 analysis: A local government perspective

Fact sheet 3: Road funding

Man with umbrella looking down the road

The Budget reflects the Australian Government's commitment to extending the Roads to Recovery (R2R) program. $300m is provided in 2005-06 for allocation directly to councils, with shares being based on the 2004-05 assessments made by the Local Government Grants Commissions. There have been some significant variations in individual councils' shares compared to the previous R2R program - especially in Victoria.

The Commonwealth also provides identified local road grants via Financial Assistance Grants to local government (See Fact Sheet 2).

Tables 6.1 - 6.3 outline total road funding (with and without identified local road grants). A summary of R2R funding for 2005-06 is at Table 6.4.

The AusLink Strategic Regional Program will receive $33.1m in 2005-06, and local roads in unincorporated areas in New South Wales, South Australia and Northern Territory will get $7.5m. No details are available on allocation of the remaining strategic funds (about $26m) with Minister Anderson indicating only that "they will be allocated on a competitive basis".

The federal Black Spot program has been extended until June 2008, with funding of $45m a year until then.

Table 6.1: Auslink funding 2004-05 to 2008-09
Funding 2004-05 $m 2005-06 $m 2006-07 $m 2007-08 $m 2008-09 $m
Total 1682 1670 2015 2163 2021
Auslink 1265 1225 1562 1732 1635
Roads to Recovery 259 341 343 330 330
Black Spots 45 45 45 45 0
Other 113 59 65 56 56
Table 6.2: Identified local roads grants 2004-05 to 2008-09
2004-05 $m 2005-06 $m 2006-07 $m 2007-08 $m 2008-09 $m
473.4 500 519.5 534.5 554.5
Table 6.3: Total Commonwealth road funding 2004-05 to 2008-09
Commonwealth road funding 2004-05 $m 2005-06 $m 2006-07 $m 2007-08 $m 2008-09 $m
Total 2155.4 2170 2534.5 2697.5 2575.5
Auslink 1682 1670 2015 2163 2021
Identified local roads grants 473.4 500 519.5 534.5 554.5
Table 6.4: Roads to Recovery funding 2004-05
State Local councils $m Strategic regional $m Remote1 $m Total $m
Total 300 33 7.5 340.5
New South Wales 85 16.2 0.6 101.8
Victoria2 62.5 6.6 0 69.1
Queensland3 62.5 2.9 0 65.4
Western Australia3 45 1 0 46
South Australia 25 0 2.7 27.7
Tasmania 10 5.3 0 15.3
Northern Territory3 5 1 4 10
ACT 5 0 - 5
IOTs 0 0 0.2 0.2
  1. Unincorporated areas
  2. Victoria will receive $16,000 in 2005-06 for unincorporated areas
  3. The strategic regional figures for Queensland, Western Australia and the Northern Territory each include an allocation of $1m for the Outback Highway. The final distribution of funds for the highway will be determined in consultation with the Outback Highway Development Council, local authorities and the state and territory governments.

Other transport initiatives include the extension of the subsidy for enroute air traffic control charges for small airlines, at a cost of $5.6m in 2005-06.

 
Page last updated: 8 June 2005