The Commonwealth provides about 20 per cent of total road funding. Most Commonwealth funding is under AusLink, the land transport infrastructure plan (which also includes rail). In 2006–07, of Commonwealth road funding of $2.7 billion, about $2.2 billion was under Auslink. In addition to AusLink, the Commonwealth provides grants to local governments ($518 million in 2006–07).

A major focus of Auslink is the movement of freight. The Bureau of Transport and Regional Economics (BTRE) has projected that non-bulk freight (which accounts for most road freight) will increase by 82 per cent in tonne-kilometre terms between 2003 and 2020 or at an annual average rate of 3.6 per cent. The BTRE has also projected that road’s share of non-bulk freight will increase slightly from 74 per cent to 76 per cent over this period (although this does not take account of investment in north–south rail lines).

Funding for the first stage of AusLink—AusLink 1—which covers the five years to 30 June 2009, is $15.8 billion, of which about $600 million is for rail. Most funding under AusLink 1 is for National Projects on the National Land Transport Network, which comprises the main road and rail freight routes consisting of 24 corridors. In 2006–07, funding of the Network amounted to $1.5 billion. The National Projects to be funded are contained in bilateral agreements between the Commonwealth and each state, and funding is for maintenance as well as construction. While the Department of Transport and Regional Services administers AusLink, the states are responsible for planning, building and managing the majority of the Network.

Three other programs funded under the AusLink (National Land Transport) Act 2005 are the Roads to Recovery program, the Strategic Regional program, and the Black Spot program. Roads to Recovery grants are paid directly to councils for upgrading local roads. The Strategic Regional program is largely for projects in rural areas. The Black Spot program allocates funds to high accident locations, and the BTRE has evaluated the program as highly successful. In 2006–07, funding for these programs was $304 million, $290 million, and $42 million respectively.

In the 2007–08 Budget, the Howard Government announced that it would provide
$22.3 billion over the period 2009–10 to 2013–14 for the second stage of AusLink—Auslink 2. During the election campaign, the major parties pledged funding to specific road projects under AusLink 2, but the full disposition of funds by jurisdiction, year and project is yet to be determined.

Library documents
Richard Webb, ‘Commonwealth road funding since 1990’, Research Paper, no. 7, Parliamentary Library, Canberra, 2003–04.

Documentation
Department of Transport and Regional Services, AusLink White Paper, 2004.