The NSW and Queensland governments have prioritised funding towards infrastructure in their respective state budgets handed down last week.
The NSW Government’s $118.3 billion infrastructure investment in the 2025–26 State Budget includes $30b in infrastructure investment for 2025-26, with major funding for housing-enabling works, regional development, economic precincts and essential services.
The Civil Contractors Federation NSW (CCF NSW) said the real test would be how quickly projects hit the ground, and whether local contractors were part of the delivery.
CEO Kylie Yates said the Government’s ambition was welcomed, but “big promises need big changes”.
“If procurement settings don’t shift to support local and mid-sized contractors, projects won’t be delivered at the scale, speed or cost the Government is counting on,” she said.
Budget highlights with significant civil works include:
- $5.5b roads package for Western Sydney
- $3.6b for Sydney Metro – Western Sydney Airport
- $2.3b for disaster recovery in Hunter and Northern Rivers
- $2.1b for new regional schools including West Dapto and Broken Hill
- $644.1m for stormwater and recycled water in the Mamre Road Precinct
- $12.4b for health infrastructure statewide
- $115.5m for Newcastle Port logistics precinct to support Renewable Energy Zones
While CCF NSW supports initiatives like the Investment Delivery Authority and Housing Infrastructure Funds, Yates warned that complex tenders and slow decisions inside government still hold up delivery.
“We can’t just cut red tape for big developers and investors. We must cut it inside government too so every agency and contractor can get on with the job,” she said.
“Essential infrastructure means getting the basics right – and that includes fixing a construction procurement system where more than half of all government projects go to multinationals, shutting out local contractors.”
CCF NSW also called for civil trades to be included in the Government’s housing and skills strategy.
“The tradies who build homes include the civil contractors who build the subdivisions, water, sewer and power infrastructure and the local roads that every house and community needs,” Yates said.
In Queensland, Budget highlights included:
- Bruce Highway Targeted Safety Program – $9b dedicated to improve key areas of the highway, jointly funded by the State and Federal Government
- Safer Roads, Better Transport Plan supported with $41.7b over 4 years
- Increased funding for the Residential Activation Fund
- $100m for Country Roads Connect – upgrading safety and flood resilience across regional Queenland
- $130m towards procurement opportunities for small businesses
- $93m for the Skilling Queenslanders for Work initiative
- $20m for the Back to Work program
The Civil Contractors Federation Queensland (CCF QLD) welcomed the strong prioritisation of infrastructure in the Budget but said there was reason to consider the potential impacts of how the infrastructure projects are planned.
It said it was essential to ensure local contractors can tender for the projects.
CCF QLD CEO Damian Long it was critical to ensure local and regional contractors are directly engaged in order to support the delivery of the pipeline.
“Project planning must consider the size of projects to engage all of the market participants,” he said.
“Collaboration from planning through to construction must be a priority.”
CCF QLD has long advocated for more resources to be spent addressing the critical shortage of skilled workers in the construction industry and welcomed the $1.6b dedicated to training, upskilling, and reskilling Queenslanders into key industries.