Update from our CEO, Toby Kent: Focus on Policy & Budget Actions
Focus on Policy & Budget Actions
Fresh from ISC Connect 2026, it is clear that much of Australia and New Zealand’s infrastructure has moved decisively from ambition to delivery – but it is equally clear that the task ahead remains substantial. This year’s record number of award submissions and the calibre of those recognised, reflects a sector that is increasingly embedding sustainability and resilience into how infrastructure is planned, delivered and operated. From major transport programs to community‑focused upgrades, the projects recognised this year demonstrate how infrastructure is being designed and delivered to endure, adapt and create long‑term value.
The projects and organisations recognised – from the Suburban Rail Loop East, Te Ara Tupua to the Fitzroy to Gladstone Pipeline – demonstrate what is possible when policy, investment and delivery align around clear outcomes. They show that infrastructure can deliver economic, environmental and social value together, and that resilience is becoming a core design principle rather than an afterthought.
But these examples also highlight the scale of the opportunity – and the gap that still exists across the broader market. While leading projects are setting new benchmarks, consistent, system-wide adoption of outcomes-focused, sustainable approaches is still uneven. Closing that gap will be critical if infrastructure is to fully support productivity, decarbonisation and the growing demands of our communities.
As ISC has a positive close to the financial year, recent Federal and State budgets reinforce that infrastructure is increasingly positioned as a central lever for economic performance, energy transition and housing delivery. Investment is becoming more targeted and more accountable — with a stronger focus on system performance, coordination and long‑term value. The challenge is now to ensure that this investment consistently translates into measurable outcomes on the ground.
This is where ISC’s role continues to evolve. We are seeing strong growth in engagement across our ratings, training, events and thought leadership work as governments and industry look to lift capability and embed more consistent approaches. The direction of travel is clear, but progress at scale will require deeper collaboration across the sector.
The opportunity ahead is significant. The pace of reform and investment gives the sector a unique window to lift performance, strengthen resilience and deliver lasting value – but only if we move together, with shared frameworks, clear metrics and a continued focus on outcomes.
I look forward to working ever more closely together as we move into the new financial year.
Australia
Federal Budget 2026 to 2027: Sustained Infrastructure Investment
The final quarter of FY2026 has delivered a strong suite of federal and state announcements, reinforcing infrastructure as central to economic resilience, the energy transition and housing delivery. It is increasingly positioned as a driver of productivity, decarbonisation and community outcomes.
The 2026 to 2027 Federal Budget includes $12.1 billion in new infrastructure investment, including $10.3 billion for transport projects, $976 million for initiatives and $803 million for community infrastructure. This sits within a broader pipeline, with $8.6 billion over 11 years for nationally significant road and rail projects and $13.5 billion in Commonwealth funding to states and territories in 2026 to 2027.
Key commitments include $3.8 billion for Suburban Rail Loop East, $1.75 billion for freight rail, $812.5 million for the Bruce Highway, $522 million for Anketell Road and $50 million for early works on the Sydney to Canberra corridor. A $2 billion Local Infrastructure Fund aims to support up to 65,000 homes.
The shift is toward outcomes. Investment is increasingly linked to housing, emissions and system performance, requiring stronger focus on whole-of-life value, resilience and social outcomes.
Freight, Rail and National Connectivity
An additional $1.75 billion for freight rail brings the Australian Rail Track Corporation program to around $2.8 billion. Works include track renewal, signaling, passing loops and resilience upgrades. A $55 million program supports modal shift from road to rail and coastal shipping.
Inland Rail is now focused on Beveridge to Parkes by 2027, enabling double stacked freight between Melbourne and Perth. The full corridor is estimated to exceed $45 billion.
A $100 million Sydney to Canberra rail investment includes $50 million from the Commonwealth and $25 million each from New South Wales and the Australian Capital Territory. Works will target crossings, track, stations and future planning. The focus is on targeted upgrades, reliability, and network performance.
Energy Security, Fuel and Gas Reform
The Federal Government has introduced a $14.8 billion fuel resilience package, including $7.5 billion for a Fuel and Fertiliser Security Facility and $3.2 billion for a national reserve of around one billion litres. Fuel storage capacity will increase to about 50 days, with excise relief extended past the initial cut off date of 30 June 2026 until 2 August 2026 (but at a smaller discount of 25% from 30 June onwards).
A domestic gas reservation scheme will begin on 1 July 2027, requiring exporters to supply 20 percent of volumes to the Australian market. Existing contracts remain protected. The policy supports supply stability during the transition to a system targeting 82 percent renewables.
In New South Wales, planning reform will fast track priority renewable projects. Renewables currently supply around 36 percent of electricity and have exceeded 80 percent at peak periods.
ESG, Environment and System Reform
At the Federal level, reforms to environmental governance include the establishment of a National Environmental Protection Agency and efforts to streamline approvals processes, alongside $2.2 billion in reprioritised climate funding. These changes point to a dual objective of improving efficiency while maintaining regulatory oversight. The ISC considers this a critical moment to advance nationally consistent, outcome-focused ESG metrics across infrastructure. As governments seek to accelerate delivery, there is a growing need for transparent, auditable sustainability frameworks that can demonstrate real performance outcomes, and ISC’s tools and rating systems are well positioned to support this transition.
New Zealand
Auckland City Deal
The New Zealand Government and Auckland Council have signed the country’s first Auckland City Deal establishing a long-term partnership to better coordinate investment and unlock the city’s economic potential. The agreement focuses on boosting growth, productivity, and living standards by aligning planning across transport, housing, infrastructure, and innovation. Key commitments include a 30-year transport strategy, support for major infrastructure and precinct development, and targeted initiatives to grow tourism, events and global investment.
State Spotlight: Western Australia Budget 2026 to 2027
The Western Australian Government’s 2026-27 State Budget, handed down in May 2026, confirms a continued focus on housing, infrastructure and economic resilience, underpinned by a projected $2.4 billion operating surplus and WA’s ongoing triple-A credit rating. Western Australia has committed to a $44.3 billion four-year asset pipeline, supported by a $2.4 billion surplus.
A $4.7 billion housing package will deliver more than 34,000 homes, including $1.3 billion for enabling infrastructure. A $1.4 billion Clean Energy Fund will support transmission and network upgrades ahead of coal closures by 2030. Major investment continues across transport and METRONET.
These investments are aimed at lifting system capacity, supporting population growth, enabling decarbonisation and maintaining a strong pipeline of construction and infrastructure activity across metropolitan and regional Western Australia.
From an ISC perspective, WA exemplifies the convergence of housing, infrastructure, and energy transition, highlighting the need for integrated systems planning. The scale of investment presents a significant opportunity to embed sustainable precinct development and decarbonised infrastructure networks at scale.
State Spotlight: Victoria Budget 2026 to 2027
Victoria’s Budget prioritises maintenance and affordability. It includes $1.041 billion for road maintenance, $673.6 million for trains, $481 million for regional transport and $432.5 million in fare relief. Additional funding supports bus and ferry upgrades, water infrastructure and manufacturing electrification. As of 1 November 2025, VicGrid took over responsibility from the Australian Energy Market Operator for planning Victoria’s transmission network and is now tasked with delivery of a $7.9 billion pipeline of projects under the Victorian Transmission Plan. The focus on maintenance reinforces lifecycle asset management and integrated planning.