National

Billions to go to 'boring but essential' infrastructure

May 10, 2026

New houses in Sydney — Tuesday's budget will deliver an extra $2 billion for critical infrastructure and new housing. -AAP Image

Billions of the dollars will be allocated to the "boring but essential" infrastructure needed to build new homes in the upcoming federal budget.

Hold tight - we’re checking permissions before loading more content

Treasurer Jim Chalmers will deliver his fifth budget for the Albanese government on Tuesday night and is widely expected to try to convince voters the dream of home ownership is still alive.

The government maintains its primary focus in the upcoming budget will be to lift home ownership by boosting supply.

The budget promises to build on state and territory efforts to liberalise planning and zoning laws by removing red tape holding back modern methods of construction, like modular housing.

The latest announcement is an extra $2 billion over four years to be allocated to funding critical infrastructure like roads, water, power and sewerage, without which new houses cannot be built.

Its expected this will help facilitate the construction of up to 65,000 new dwellings.

Local governments and state utility providers are set to receive the money to undertake these projects, with $500 million reserved specifically for regional Australia.

The funding was part of the government's investment in the "boring but essential" work that increases housing supply, Housing Minister Clare O'Neil said.

"This critical investment will literally lay the foundations for our country to build more homes, because more housing supply means more housing affordability," she said.

The government's housing plan was pro-aspiration and it's pro-investment, Dr Chalmers added.

"Right now, it's too hard for too many Australians to get into their own home and get ahead and that's why we're investing in supply," he said.

"We're coming at this housing challenge from every responsible angle, and boosting supply is central to that."

Tuesday's fiscal blueprint will also set aside more than $387 million for the CSIRO.

The investment, over four years, is aimed at ensuring Australia is at the forefront of public research in science and technology.

However the funds can't take away from the fact the nation's leading research agency has undergone severe staff losses, according to the Community and Public Sector Union.

"Since February 2024, 1150 jobs have been cut from CSIRO, CPSU secretary Susan Tonks said.

"While this funding boost will not change the reality for those scientists who have lost their jobs or facing immediate job cuts, it will be crucial in stemming further job losses."