A Bill for an Act to Establish the Federal Regional Roads Assistance Program (FRRAP) and Restore Federal Assistance Grants (FAGs) to 1% of Consolidated Revenue
To provide equitable funding for regional councils to address critical infrastructure needs, enhance safety, and promote economic growth in regional Australia.
- Short Title
This Bill may be cited as the Federal Regional Roads and Assistance Grants Bill 2025.
Commencement
This Bill commences on a day to be fixed by proclamation, but no later than six months after receiving Royal Assent.
Objects of the Bill
The objects of this Bill are to:
- Establish the Federal Regional Roads Assistance Program (FRRAP).
- Ensure equitable allocation of federal funding for road infrastructure based on the unique needs of regional councils.
- Restore Federal Assistance Grants (FAGs) to 1% of consolidated revenue to address long-standing funding shortfalls for local governments.
- Link a significant portion of fuel excise revenue directly to regional road funding.
Definitions
In this Bill, unless the contrary intention appears:
- FRRAP: The Federal Regional Roads Assistance Program established under this Bill.
- Regional Council: A local government entity classified as regional or rural by the Australian Local Government Association (ALGA).
- Metropolitan Council: A local government entity classified as urban or metropolitan by the ALGA.
- Fuel Excise Revenue: Total revenue collected by the Commonwealth from the excise on petrol and diesel.
- Economic Boost Corridor: A road network or project identified as critical to regional economic growth.
- Rural Road Safety Accelerator: A funding stream within FRRAP prioritising road safety upgrades.
Establishment of the Federal Regional Roads Assistance Program (FRRAP)
(1) Program Creation
The Federal Regional Roads Assistance Program (FRRAP) is established as a dedicated funding mechanism within the Commonwealth budget.
(2) Funding Pool
(a) The FRRAP funding pool will comprise:
(i) No less than 50% of Financial Assistance Grants (FAGs) allocated to regional and rural councils.
(ii) 35% of annual fuel excise revenue collected by the Commonwealth Government.
(b) Annual appropriations to the FRRAP must be indexed annually to account for inflation.
(3) Administration
The Department of Infrastructure, Transport, Regional Development, and Local Government shall administer the FRRAP.
Restoration of Federal Assistance Grants to 1% of Consolidated Revenue
(1) FAG Allocation
Federal Assistance Grants will be restored to 1% of consolidated revenue, doubling the current allocation.
(2) Regional Councils Priority
Regional councils shall be allocated no less than 50% of FAGs to address road maintenance and infrastructure backlogs.
Allocation of Funding
(1) Eligibility
(a) Only regional councils, as defined under Section 4, are eligible for funding under FRRAP.
(b) Projects must address:
(i) Road safety.
(ii) Economic productivity.
(iii) Infrastructure maintenance or development.
(2) Distribution Criteria
Funding allocations will consider:
(a) Kilometres of road managed by the council.
(b) Population size and density.
(c) Economic importance of the road network to agriculture, tourism, and freight.
(d) Urgency of safety upgrades based on accident data.
Special Provisions
(1) Rural Road Safety Accelerator
(a) A minimum of 20% of FRRAP funding shall be allocated to the Rural Road Safety Accelerator.
(b) This stream prioritises upgrades to dangerous crossings, bypasses, and high-risk intersections, such as the Bourke Street rail crossing in Wagga Wagga.
(2) Smart Roads Technology Grants
(a) Regional councils may apply for additional grants to implement innovative road maintenance technologies.
(b) The Commonwealth will prioritise projects that utilise AI, drones, or automated grading systems to enhance efficiency.
Reporting and Accountability
(1) Council Reporting
(a) Councils receiving FRRAP funding must submit annual reports detailing:
(i) Expenditure of funds.
(ii) Progress of funded projects.
(iii) Outcomes achieved.
(2) Departmental Oversight
(a) The Department shall conduct an annual audit of FRRAP allocations to ensure compliance and transparency.
(b) Findings must be tabled in Parliament.
Legislative Amendments Required
(1) Fuel Tax Act 2006
Insert provisions allocating 35% of annual fuel excise revenue to FRRAP.
(2) Fuel Indexation (Road Funding) Special Account Act 2015
Amend Section 5 to redirect 35% of total fuel excise revenue to FRRAP.
(3) Local Government (Financial Assistance) Act 1995
Amend Section 6 to harmonize FAGs and FRRAP funding allocations for regional councils.
Review of the Program
The FRRAP and FAG allocations shall be reviewed every five years to assess their effectiveness in meeting the objects outlined in Section 3. The Minister shall present a review report to Parliament, with recommendations for amendments if necessary.
Transitional Provisions
(1) Initial Appropriations
(a) For the first financial year after the commencement of this Bill, an additional $2 billion shall be allocated to FRRAP to address critical road infrastructure backlogs.
(2) Phase-in Period
(a) Metropolitan councils shall continue to receive FAGs under the existing framework for a transition period of two years, after which funding allocations will reflect the separation of regional and metropolitan streams.
Regulations
The Governor-General may make regulations, not inconsistent with this Bill, prescribing matters necessary or convenient for the operation of this Bill.
This Bill guarantees a sustainable funding model for regional infrastructure, combining increased federal grants and dedicated fuel excise revenue to deliver safer, more efficient roads and services for regional Australians.
