Inland Rail Bypass and Regional Infrastructure Funding Bill 2025

A Bill for an Act to Establish a Federal Funding Mechanism and Guarantee for the Development of an Inland Rail Bypass Around Wagga Wagga

Preamble

Whereas:

1. The Inland Rail project is a nation-building initiative of critical importance to Australia’s freight and logistics network.
2. The current alignment of the Inland Rail through Wagga Wagga presents significant challenges, including disruptions to urban liveability, emergency services, and infrastructure sustainability.
3. It is in the national interest to address these challenges by preserving the long-term liveability of Wagga Wagga while maintaining the efficiency and effectiveness of the Inland Rail project.
4. A hybrid funding model combining multiple federal and state sources is essential to ensure the timely and efficient delivery of a bypass around Wagga Wagga.
5. The bypass must prioritise environmental and social safeguards, emergency response capabilities, and local economic benefits to ensure a sustainable and inclusive outcome.

Part 1: Preliminary

1. Short Title
   

   This Act may be cited as the Inland Rail Bypass and Regional Infrastructure Funding Act 2025.

2. Commencement
   

   This Act commences on the day after it receives Royal Assent.

3. Objects of the Act
   

   The objects of this Act are:
   (a) To establish a hybrid funding mechanism for the planning, design, and construction of an Inland Rail bypass around Wagga Wagga.
   (b) To ensure the bypass is fully funded through a combination of federal and state resources.
   (c) To safeguard the long-term liveability, safety, and amenity of Wagga Wagga while supporting the economic objectives of the Inland Rail project.
   (d) To prioritise emergency access, local job creation, environmental sustainability, and future-proofing of infrastructure.

4. Definitions

   In this Act:

• Bypass means the construction of a new rail corridor around the city of Wagga Wagga.
• Schott Report refers to the findings of the independent Inland Rail review conducted by Dr. Kerry Schott.
• Minister refers to the Federal Minister for Infrastructure, Transport, Regional Development, and Local Government.

Part 2: Funding Mechanism

5. Establishment of the Inland Rail Bypass Fund
   

   (1) The Inland Rail Bypass Fund is established under this Act.
   (2) The purpose of the Fund is to provide financial resources for the planning, design, and construction of the Inland Rail bypass around Wagga Wagga.
   (3) The Fund shall be administered by the Department of Infrastructure, Transport, Regional Development, and Local Government.

6. Hybrid Funding Model
   

   The Inland Rail Bypass Fund shall draw from the following sources:
   1) Consolidated Revenue Fund (CRF):

   • An initial allocation of $500 million from the CRF for project feasibility, design, and initial construction phases.
   • Annual allocations of $150 million until project completion.

2) Fuel Excise Revenue:

• • A specific allocation of 1.5% of annual fuel excise revenue shall be directed to the Fund.

3) Infrastructure Investment Programme (IIP):

• • A grant of $300 million from the IIP shall be dedicated to the bypass.

4) National Freight and Supply Chain Strategy Fund:

• • A targeted grant of $250 million to address freight-related impacts and align the bypass with national logistics objectives.

5) State Contributions:

• • The New South Wales Government shall be invited to co-fund up to $250 million to support land acquisition and preparatory works.

6) Debt Financing:

• • Infrastructure bonds may be issued to cover any funding shortfalls, with repayment tied to Inland Rail freight revenues.

7. Funding Guarantee

(1) The Federal Government guarantees that funding for the bypass shall not be diverted to other projects.

(2) The Fund shall be subject to annual audit by the Australian National Audit Office to ensure compliance with this Act.

Part 3: Project Development

8. Bypass Design and Planning
   

   (1) The Minister shall direct the Australian Rail Track Corporation (ARTC) to prioritise the design and planning of the Wagga Wagga bypass.
   (2) The bypass design must align with the recommendations of the Schott Report, including:
   (a) Identification and preservation of a rail easement.
   (b) Ensuring minimal disruption to the city’s floodplain and existing infrastructure.
   (c) Future-proofing the bypass to accommodate potential electrification and dual-use rail corridors.

9. Public Consultation

   (1) The ARTC shall conduct public consultations with the residents of Wagga Wagga and relevant stakeholders.

   (2) Consultation must include:

   • Local business owners, freight operators, and community organisations.
   • Indigenous groups to address cultural and environmental considerations.

   (3) A comprehensive environmental and social impact assessment shall be undertaken before construction begins.

10. Emergency Response Planning

The bypass design must incorporate emergency response capabilities, including alternative access routes for emergency services during construction and operation.

11. Construction Timeline

(1) The construction of the bypass must commence within three years of the commencement of this Act.

(2) The project must be completed within eight years of the commencement date.

Part 4: Reporting and Accountability

12. Progress Reports

(1) The Minister must table annual progress reports on the bypass project in Parliament.

(2) The reports must include:
(a) Financial expenditure to date.
(b) Project milestones achieved.
(c) Any delays or challenges encountered.

13. Parliamentary Oversight Committee

(1) A Parliamentary Oversight Committee on Inland Rail Infrastructure shall be established to monitor the implementation of this Act.

(2) The Committee shall include representatives from:
(a) Federal, State, and Local Governments.
(b) Relevant industry groups and community stakeholders.

Part 5: Miscellaneous

14. Regulation-Making Powers

The Governor-General may make regulations under this Act as required to implement its provisions.

Explanatory Notes

The Inland Rail Bypass and Regional Infrastructure Funding Act 2025 establishes a hybrid funding model combining federal, state, and targeted resources to ensure the timely and efficient delivery of a bypass around Wagga Wagga. This legislation prioritises local job creation, emergency access, and environmental sustainability while safeguarding the city’s liveability and economic potential for decades to come.