The big changes coming to Victoria’s infrastructure spending

The state government will be forced to tip in a greater share of funding towards future infrastructure projects.

Traditionally the federal government has funded 80 per cent of projects, with the state making up the remaining 20 per cent share. Under new changes, a 50-50 split has been mooted as the way forward.

Grattan Institute transport and cities program director Marion Terrill was at Tuesday morning’s announcement and spoke about the big shift in the way infrastructure is funded moving forward.

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“The federal government is going to limit itself to projects of national significance,” Ms Terrill told Neil Mitchell on 3AW Mornings.

“States will I think have more skin in the game.”

She also spoke about whether the changes could affect the planned Suburban Rail Loop, with the first stage expected to be operational by 2035.