Ruqayyah Snyder
Australia has a strong reputation for its public infrastructure, with some noting that many things are provided for free. Australia is acknowledged as a world leader in innovative public-private partnerships, integrated water resource management, and sustainable urban planning and development. However, there are concerns about stagnant levels of industry multifactor productivity growth and calls for a more balanced approach to risk allocation in contracts. Australia's infrastructure programs have long lead times, and appropriate action is required to safeguard communities and infrastructure investments from environmental and displacement/resettlement risks. The country's infrastructure quality is rated on a scale from 0 (worst) to 100 (best), and there is a focus on delivering better outcomes for the community and businesses through a more productive, innovative, and sustainable infrastructure sector.
| Characteristics | Values |
|---|---|
| Public infrastructure | Good |
| Infrastructure Australia's role | Provides independent research and advice to all levels of government and industry on projects and reforms relating to investment in Australian infrastructure |
| Infrastructure Australia's establishment | July 2008 |
| Infrastructure Australia's goal | To ensure a single pipeline for the evaluation and prioritisation of nationally significant infrastructure projects |
| Top occupations in demand over the five-year outlook | Other Professional Engineers, Project Managers |
| Total workforce shortfall | 197,000 |
| Northern Territory Government's contribution | Funding for 20 participants through the Flexible Workforce Solutions Fund |
| Areas of expertise | Innovative public-private partnerships, integrated water resource management, sustainable urban planning and development |
| Areas of focus | Governance and policy arrangements, physical infrastructure |
| Transport infrastructure support | Road and rail infrastructure, public transport, ports, airports |
| Recent projects | Reconstruction of four bridges in Oro Province, Papua New Guinea |
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What You'll Learn
Australia's infrastructure quality rating
Australia is acknowledged as a world leader in key areas of infrastructure development, including innovative public-private partnerships, integrated water resource management, and sustainable urban planning and development. The country's experience and expertise in infrastructure are highly relevant to its partner countries, to which Australia provides aid and support.
Infrastructure Australia, a NSW-based independent statutory body, provides independent research and advice to all levels of government and industry on projects and reforms relating to investment in Australian infrastructure. It maintains the Infrastructure Priority List, which ensures a single pipeline for the evaluation and prioritisation of nationally significant infrastructure projects. In its 2024 Industry Confidence Survey, Infrastructure Australia found that while companies rated their current productivity levels as "good", there were calls for a more balanced approach to risk allocation in contracts, citing issues such as overly complex and litigious contract models and governments' low tolerance for risk.
Australia's Strategy for Investments in Economic Infrastructure guides official aid expenditure and supports program teams in making informed investment choices. The strategy prioritises investment in transport, energy, large-scale water and sanitation, urban, and ICT infrastructure. Australia's approach to delivering infrastructure programs focuses not only on physical infrastructure but also on the governance and policy arrangements needed to provide safe, sustainable, affordable, and reliable infrastructure.
Despite Australia's strong reputation in infrastructure development, there are some challenges. For example, there is a recognised need for a "transformational change" in how infrastructure is planned and delivered in the country, with a focus on better outcomes for the community and businesses through a more productive, innovative, and sustainable infrastructure sector. Additionally, Australia faces labour shortages in certain sectors, with engineering, scientists, and architects being in high demand, particularly for energy projects.
Overall, while Australia is recognised as a leader in certain areas of infrastructure development and has mechanisms in place to support and prioritise infrastructure projects, there are also acknowledged challenges and a need for continued improvement in specific areas.
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Infrastructure Australia's role
Infrastructure Australia is a New South Wales-based independent statutory body that provides independent research and advice to all levels of government and industry on projects and reforms relating to investment in Australian infrastructure. It was established in July 2008 to advise the Australian Government under the Infrastructure Australia Act 2008.
The body advocates for reforms on issues including financing, delivering and operating infrastructure and how to better plan and use Australia's infrastructure networks. It also maintains the Infrastructure Priority List, which is a prioritisation process intended to ensure that there is a single pipeline for the evaluation and prioritisation of nationally significant infrastructure projects.
Infrastructure Australia's website hosts the Infrastructure Workforce Skills Supply Dashboard, which presents detailed insights on infrastructure workforce supply, demand and shortages. The dashboard is an interactive tool that allows users to view the workforce broken down by state and territory, specific roles, age and gender. The data is refreshed annually by Infrastructure Australia.
In addition to its research and advisory role, Infrastructure Australia also undertakes various initiatives to support the development and improvement of Australia's infrastructure. For example, it conducts surveys and analyses, such as the 2024 Industry Confidence Survey, to understand industry perceptions and market responses to workforce challenges. It also works with other organisations, such as Engineers Australia, to address skills shortages and connect employers with the skills they need.
Infrastructure Australia also plays a role in negotiating agreements between the Australian Government and state and territory governments, such as the Federation Funding Agreement Schedule, which sets out shared objectives and responsibilities for delivering land transport infrastructure.
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Transport infrastructure
Australia's transport infrastructure is generally considered to be of good quality. The country has a well-developed road network, with the government investing in the maintenance and rehabilitation of existing roads, as well as the construction of new ones. This has improved regional connectivity and enhanced the movement of goods and people within the country.
In addition to roads, Australia also has a vast rail network, with trains being a popular mode of transport for both passengers and freight. The country's major cities, such as Sydney, Melbourne, and Brisbane, also have well-developed public transport systems, including buses, trams, and in some cases, metro trains. These cities also have efficient road networks, with parking facilities, although there are concerns about the longevity of some of this infrastructure, with suggestions that much of it is reaching the end of its lifespan.
Australia's transport infrastructure also includes a number of ports and airports, which facilitate trade and travel. The country has a number of major international airports, including Sydney Airport and Melbourne Airport, which are both among the busiest in the world. These airports have modern terminals and efficient runway systems, allowing for the smooth movement of passengers and cargo. Australia has also committed to constructing an undersea telecommunications cable to Papua New Guinea and the Solomon Islands, which will provide faster and more reliable internet connectivity, boosting economic growth and development.
Despite the overall positive assessment of Australia's transport infrastructure, there are some challenges. For instance, the country has been criticized for its complex and litigious contract models, as well as the government's low tolerance for risk in infrastructure projects. There is also a perceived need for a more balanced approach to risk allocation in contracts, with concerns about the impact of extreme weather events on project delivery.
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Energy infrastructure
Australia's energy infrastructure is at a crossroads. The country's two main electricity markets, the National Electricity Market (NEM) and the South West Interconnected System (SWIS), are facing challenges due to a rapidly evolving energy landscape. While Australia has been the world's largest exporter of coal and liquefied natural gas, its domestic energy infrastructure has suffered from a lack of long-term investment and planning. This underinvestment has impacted both the NEM and the SWIS, affecting their ability to balance reliability and the integration of renewable energy sources.
The NEM, serving the eastern and southern states, is the largest interconnected power system globally. It is witnessing a boom in renewable energy sources like solar and wind power. However, this rapid expansion of renewables has unveiled difficulties in managing grid stability and preventing blackouts due to the intermittent nature of renewable energy and inadequate storage solutions. Similar trends are observed in the SWIS, which serves Western Australia, albeit on a smaller scale.
Australia's energy infrastructure needs to transition from an outdated coal-dominated system to a modern, renewable energy-friendly setup. This shift requires substantial investment in energy infrastructure, which will have significant benefits for the economy and Australian businesses. However, it also necessitates policy changes and market reforms to encourage and facilitate this transition.
The Australian Renewable Energy Mapping Infrastructure (AREMI) is a valuable resource, providing a data catalogue of electricity infrastructure, including wind power generation connected to the NEM. Additionally, the Clean Energy Council maintains a national list of renewable energy projects under construction or expected to commence soon. These resources offer insights into the ongoing developments in Australia's renewable energy landscape.
To address the labour shortage in energy projects, the Northern Territory Government has funded a initiative through their Flexible Workforce Solutions Fund, successfully onboarding 17 government and private organisations. This initiative aims to connect employers with the skills they need in the energy sector and is a step towards addressing the workforce demands of the growing renewable energy industry.
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Australia's infrastructure assistance
Australia has a range of infrastructure assistance programs in place, both domestically and internationally.
Domestic Infrastructure Assistance
Infrastructure Australia is an independent statutory body that provides research and advice to the government and industry on investment in Australian infrastructure. It advocates for reforms on issues including financing, delivering, and operating infrastructure, with a focus on better planning and use of the country's infrastructure networks. The body also maintains an Infrastructure Priority List, which aims to ensure a single pipeline for the evaluation and prioritisation of nationally significant infrastructure projects.
The Infrastructure Australia Board, formed in 2014, brings together expertise from business, academia, and the public and private sectors. It works to address issues such as risk allocation in contracts, complex contract models, low government risk tolerance, and the impact of extreme weather events on project delivery.
International Infrastructure Assistance
Australia has a history of providing infrastructure assistance to developing nations, particularly in the Asia-Pacific region. This assistance takes various forms, including policy and project preparation support, grants, and loans to build physical assets.
One notable example is Australia's support for transport infrastructure in Indonesia, Papua New Guinea, and Vietnam. These programs focus on road and rail infrastructure, improving regional connectivity, and supporting the maintenance and rehabilitation of existing infrastructure, as well as the construction of new roads.
Australia has also committed to constructing an undersea telecommunications cable connecting Australia to Papua New Guinea and the Solomon Islands, which will enhance internet connectivity and facilitate economic growth in the region.
Another key area of focus for Australia's infrastructure assistance is water and sanitation. In Indonesia, Australia supports the Water and Sanitation Hibah, which encourages local governments to invest in their own water utilities through an output-based payment mechanism.
Australia's Strategy for Investments in Economic Infrastructure guides official aid expenditure, prioritising investments in transport, energy, water and sanitation, urban development, and ICT infrastructure. This strategy recognises the role of infrastructure in driving economic growth, improving trade and investment, creating employment, and providing access to basic services.
Through these domestic and international initiatives, Australia strives to enhance its own infrastructure networks and contribute to global development by sharing its expertise and resources.
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Frequently asked questions
Australia is acknowledged as a world leader in key areas such as innovative public-private partnerships, integrated water resource management, and sustainable urban planning and development. Australia's infrastructure is highly regarded, with some people expressing amazement at how good it is.
Australia has a well-functioning system for cleaning up after people, and many things are provided for free or at a low cost. For example, parking is abundant and affordable, and public venues are cheaper than private ones. Australia also has good road and rail infrastructure, which improves regional connectivity.
There are concerns about stagnant levels of industry multifactor productivity growth and issues with risk allocation in contracts. There is also a need for a more balanced approach to risk allocation and a more sustainable infrastructure sector. Additionally, some infrastructure built after the Melbourne Olympics is reaching the end of its lifespan, and there may not be enough funding for repairs.
Infrastructure Australia, an independent statutory body, provides research and advice to the government on infrastructure investment projects and reforms. They advocate for reforms in financing, delivery, and operation of infrastructure to better plan and use Australia's infrastructure networks. Australia also has an Infrastructure Priority List to evaluate and prioritise significant infrastructure projects.
Australia's experience and expertise in infrastructure are highly relevant and beneficial to its partner countries. Australia has supported infrastructure projects in Indonesia, Papua New Guinea, Vietnam, the Mekong, and the Pacific. They have also committed to constructing an undersea telecommunications cable to improve internet connectivity in Papua New Guinea and the Solomon Islands.
