Vic Budget reaffirms role of infrastructure investment

The Victorian Government’s 2025/26 Budget has reaffirmed the central role of infrastructure investment in the economic growth, job creation, and liveability of the state.  

“The Budget outlines a pathway for a return to surplus while continuing to deliver significant capital works that directly benefit the Victorian economy, albeit at a declining rate compared to infrastructure spending over the last 10 years”, said Cement Concrete and Aggregates Australia CEO, Michael Kilgariff. 

“The ongoing decline in new transport infrastructure spending does raise long term issues for Victoria’s population growth. 

“The Budget’s $8.1 billion in new capital investment and $213 billion total pipeline of new and existing capital projects – delivers steady demand for construction materials over coming years. 

“The Budget confirms government infrastructure investment will average $17.9 billion annually, but with a focus on deliverability and sector capacity. While labour and materials constraints are easing, efficient delivery and continued supply chain collaboration remain essential.”  

Kilgariff said that while the Budget outlines a commendable pipeline, CCAA reiterates the key priorities for the construction materials sector includes long-term planning certainty for major projects and consistent procurement and approval processes to avoid disruptions. 

“The industry also seeks streamlined approvals and procurement that aligns with emissions reduction goals. 

“It is critical that Victoria remains committed to building the infrastructure needed for a growing state. For our industry, this translates to sustained demand, project visibility, and supply chain confidence. 

“We look forward to working with the government to ensure timely delivery and environmental best practice across Victoria’s infrastructure program. 

“Timely and streamlined approvals processes for new developments as well as reducing the cost basis for business are key to achieving an efficient supply chain delivering affordable materials.”