Federal government to boost funding for local roads

The funding increase comes in response to recommendations from the independent review of the Infrastructure Investment Program, which earlier this week led to the government axing 50 road and rail projects across the country.

On Sunday, the government announced it will gradually increase Roads to Recovery funding from $500 million to $1 billion per year and Black Spot funding from $110 million to $150 million per year.

That full increase will be reached in the 2027-28 financial year. The government said the extra spending will make roads safer.

As part of the changes, the government will also merge the Heavy Vehicle Safety and Productivity Program with the Bridges Renewal Program to form the Safer Local Roads and Infrastructure Program.

Funding for the new program will increase to $200 million a year, up from a combined $150 million for the heavy vehicle safety and bridges renewal programs.

The move aims to cut down on administration work for local councils.

The government said it will be phasing in the funding over the forward estimates to "avoid putting pressure on inflation, supply costs and the construction labour market".

Infrastructure Minister Catherine King said the investment will support regional communities and give councils certainty.

"Big roads and metropolitan highways might get a lot of the attention, but we spend most of our driving lives on local roads around where we live and where we work," she said.

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"We are doing this in a responsible way, to give councils the funding they need while also ensuring the increase doesn't put pressure on inflation.

"Regional road networks have been battered by severe weather events over the last few years. This funding will help councils to fix and maintain our roads."

Earlier, the federal government scrapped a $1.5 million investment into the inner Canberra corridor planning package, in response to recommendations from in the Infrastructure Investment Program review.

At the same time, it announced a $27 million injection for infrastructure projects in the ACT, including $25 million for the Molongo River bridge crossing.