Victoria can save billions on infrastructure spending with better use, better planning and better maintenance
The Victorian Government can make big savings on infrastructure spending with longer term planning, more use of digital technologies and better use of existing infrastructure, the state’s independent infrastructure advisor finds.
Infrastructure Victoria today released Victoria’s draft 30-year infrastructure strategy. It names 50 infrastructure priorities for the state across housing, energy, transport, health, social infrastructure and the environment.
“Government will need to carefully prioritise its investment to ensure it delivers the infrastructure Victorians most need,” said Infrastructure Victoria Chief Executive Dr Jonathan Spear.
“Investing in new infrastructure is one way of building a more productive economy, and more will be needed as Victoria grows,” he said. “But there is also lots the government can do to make better use of what it already has.”
“The government can prioritise getting better use from its existing assets, improve how it maintains infrastructure so it performs better and lasts longer, and publish long term plans so that other governments, industry and not-for-profit providers can make better informed choices on where and when to invest.”
Dr Jonathan Spear
Examples include encouraging more public transport use by offering cheaper fares outside peak periods and the delivery of more goods during quieter hours of the day (draft recommendations 13 and 42).
Funding for infrastructure maintenance and upgrades should be prioritised to make the most of the government’s nearly $400 billion worth of assets (draft recommendations 37). And the government can plan and sequence infrastructure delivery better so more people can reach facilities and services sooner, at less cost.
“Victorian Government agencies can do more to share their plans with each other, and with local governments and industry,” Dr Spear said. “This helps identify opportunities to pool funding or streamline delivery. It also means infrastructure can cost less in the long term.”
The draft strategy recommends each department that owns infrastructure develop a 15- to 20-year sector plan, based on agreed assumptions on population and other factors (draft recommendation 35). “This will help shape Victoria's cities and help the government plan and sequence the infrastructure needed to support growth,” Dr Spear said.
Digital technologies can also produce big savings. For example, investing in modern traffic control technology can improve traffic flow on existing arterial roads and freeways (draft recommendation 40). Using building information modelling to build major infrastructure and housing projects can reduce cost overruns, saving billions of dollars (draft recommendation 39).
Preparing now for the major infrastructure projects that Victoria is likely to need in the longer term can reduce total project costs, prevent conflicting land use and allow others to plan better.
The draft strategy recommends the government prepare and consider business cases to expand water desalination capacity, reconfigure the City Loop and plan for the Melbourne Metro 2 rail project. It recommends more detailed planning for a future Bay West port, the outer metropolitan road and rail corridor and connecting western intermodal freight terminal.
It also recommends detailed assessments be completed for future extension of metro trains towards Kalkallo and to Clyde (draft recommendation 43), after delivering new metro trains to Melton (draft recommendation 11) and a new train station for Altona North
By partnering with the Australian Government and other organisations, along with smarter use of existing government land, the Victorian Government can implement the draft strategy’s 43 recommendations at a cost of around $55 billion. This includes an average of approximately $5 billion of infrastructure spending by the Victorian Government each year for the next 10 years. The draft strategy’s 7 future options for consideration after 2030 can be delivered at a cost of around $10 billion.
Only 27 of the 43 draft strategy recommendations need Victorian Government capital investment. Very few are large capital-intensive projects. Many target upgrades or replace infrastructure that is not running efficiently. The other 16 draft recommendations need policy work, legislative reform and better planning.
“If actioned, our recommendations will significantly reduce the costs to government of providing the infrastructure Victorians will need over the next 3 decades. Action on these recommendations can generate at least $155 billion worth of benefits to Victorians over the next decade.”
Dr Jonathan Spear
Victorians are invited to have their say
Victoria's 30-year infrastructure strategy provides a practical roadmap for the policies, reforms and projects that can deliver many benefits to Victoria’s communities, economy and the environment over the coming decades.
The draft 30-year strategy has been independently prepared by Infrastructure Victoria’s team of engineers, economists, land use planners, technical experts and social researchers using the latest available data and new modelling. The draft recommendations are based on evidence and engagement with more than 18,500 Victorians.
Infrastructure Victoria updates Victoria’s 30-year infrastructure strategy every 3 to 5 years. Community and stakeholder feedback, along with technical assessments and further evidence, also contributed to its development.
Following stakeholder and community feedback, the completed strategy will be tabled in the Victorian Parliament to inform the policies of all parties. The Victorian Government is required to respond to the strategy’s recommendations.
Infrastructure Victoria is encouraging feedback from organisations and community members on the draft strategy’s recommendations.
“We want to know: have we missed any big infrastructure challenge or opportunity? Or is there other evidence you would like us to know that might change a recommendation for the final strategy?”
The draft strategy is open for feedback until Monday 28 April 2025.
Media enquiries
Melinda Crimp melinda.crimp@infrastructurevictoria.com.au Ph: 0422 529 536
Madeleine Brennan madeleine.brennan@infrastructurevictoria.com.au Ph: 0402 715 577