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Coalition vows to divert Melbourne rail loop funds for airport rail

written by Jake Nelson | April 1, 2025

A proposed map of Melbourne’s Suburban Rail Loop. (Image: Victorian Government)

The Coalition has announced plans to slash funding for Melbourne’s Suburban Rail Loop (SRL) and instead add more investment to the airport rail link should it win next month’s federal election.

Peter Dutton, leader of the opposition, said a Coalition government would take $2.2 billion pledged to the SRL, which he labelled a “cruel hoax” that will “never be delivered”, as well as $2 billion for upgrades to Sunshine Station, and tip $1.5 billion into the long-delayed airport rail.

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The $1.5 billion airport rail pledge has been matched by Victoria’s state Liberal opposition, and would increase total federal funding for the project from $5 billion to $6.5 billion. It follows the airport signing a memorandum of understanding with the Victorian and federal governments last month.

“The Airport Rail Link is a long overdue piece of transport infrastructure vital to the future growth of Melbourne, and a Coalition government at both levels of representation will make it a reality,” Dutton said.

“Melbourne deserves a world-class gateway and we can provide that in partnership with Melbourne Airport and a willing Victorian government by delivering a first-class rail connection to the CBD.”

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The move has been dismissed by both the Victorian and federal Labor governments, with Prime Minister Anthony Albanese pointing out that the upgrades to Sunshine Station would be essential to the airport rail link project.

“Sunshine Station is about access to the airport — it is about making sure that people in Ballarat and Bendigo and Geelong and parts of Melbourne can get to the airport,” he said.

“It is a part of the Airport Rail Link, which will also be a part of the Suburban Rail Loop as well. It is how it all fits together.”

The rail link, which was last year confirmed to be delayed for at least four years, was the focal point of an extended spat between Melbourne Airport and the Victorian state government over the design, with the airport favouring an underground station and the government preferring an above-ground “sky rail” model.

The airport eventually capitulated on the design, saying in July that it would support plans for an above-ground link after Neil Scales, the federal government’s mediator, sided with the state government. Design and development work subsequently began on upgrading Sunshine Station for the connection to the airport.

The airport rail link will have three stations – the interchange at Sunshine, a new station serving Keilor East and the Airport West precinct, and the airport itself. Passengers will be able to travel straight through from the airport to the city.

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