Key facts
- Victoria's new premier, Ben Carroll, has not ruled out redirecting funds from the Suburban Rail Loop.
- Carroll stated his priority is to invest in projects that deliver the "greatest value for Victorians."
- The Suburban Rail Loop has already seen billions committed and contracts signed.
- The Parliamentary Budget Office estimates cancelling the project now would save the state $21 billion over a decade.
- Carroll also indicated potential changes to laws that would enshrine the right to work from home.
Victoria's new premier, Ben Carroll, has indicated a potential shift in funding priorities, stating he is not ruling out redirecting billions of dollars allocated for the controversial Suburban Rail Loop (SRL) to other projects. Carroll emphasized his commitment to investing state funds where they deliver the "greatest value for Victorians" and to doing so responsibly and transparently.
Carroll, who recently took office, did not confirm a review of the costly 90km public transport project but acknowledged the need for responsible investment. He also flagged "sensible changes" to the state's laws that would enshrine the right to work from home two days a week, a policy championed by his predecessors Jacinta Allan and Daniel Andrews. These statements suggest a move to distance himself from the policies of his former leadership.
The Suburban Rail Loop has been a significant undertaking, with the federal government allocating $6 billion and the state government committing approximately $11.8 billion for its first stage, SRL East. Contracts worth $14.5 billion have already been signed, and tunnel boring machines are in operation. However, the project has faced persistent criticism regarding its origins, business case, and total cost.
An independent costing by the Parliamentary Budget Office, commissioned by Libertarian MP David Limbrick, suggested that cancelling the SRL now could improve the state's budget position by $21 billion over the next decade, despite incurring $1.8 billion in contract termination fees. Opposition leader Jess Wilson has stated that if elected in November, the Coalition would pause and review the project.
Prime Minister Anthony Albanese, speaking on ABC News Breakfast, stated he would work constructively with the Victorian government to ensure Victorians' interests are protected. He also noted that under the previous federal Coalition government, Victoria's share of federal infrastructure funding had dropped significantly.