Reforms to Infrastructure Australia
In December 2022, the Australian Government released an Independent Review of Infrastructure Australia (the Review) and Government response.
The purpose of the Review was to ensure that Infrastructure Australia was positioned to achieve its core purpose — to provide quality, independent cross-sectoral advice to the Australian Government on nationally significant infrastructure that supports the economy and addresses the challenges and opportunities of the future.
In December 2023, amendments to the Infrastructure Australia Act 2008 (IA Act) were enacted by Parliament to give effect to the major elements of the Review.
These reforms represent significant change to the way Infrastructure Australia operates and include transitioning IA from a Board to a Commissioner led model. The Australian Government is currently undertaking a rigorous, merit-based selection process to appoint 3 Commissioners. Appointments will be communicated by the Commonwealth Government once finalised.
New agenda for Infrastructure Australia
Under the reforms, we will continue to deliver our core work program of:
- Assessing projects seeking over $250 million of Commonwealth funding
- Developing Infrastructure Audits and Plans
- Delivering our market capacity work program annually
However, there are some significant changes to existing parts of our work program and new additions. Infrastructure Australia is now undertaking a consultation on the following reforms with key stakeholders as we seek to implement our strengthened mandate.
A targeted Infrastructure Priority List (IPL)
The Infrastructure Priority List (IPL) will be reformed to make it a shorter, targeted list of nationally significant infrastructure priorities across transport, water, energy and telecommunications.
We will start detailed consultation with jurisdictions in May to ensure that our advice best reflects Australian, state and territory government priorities.
A new definition of National Significance
IA has developed a draft definition of ‘nationally significant infrastructure’, providing a criteria-based method to determine what infrastructure proposals we will assess; whether proposals will be eligible for inclusion on the IPL, and what topics will be the focus of our Audits, Plans and research.
Annual Statements
IA now has a responsibility to produce two annual statements, to be given to the responsible Minister, and to be tabled in the Australian Parliament.
These annual statements include a budget statement to inform the annual Commonwealth budget process on infrastructure investment; and a performance statement, presented in aggregate, on the outcomes being achieved by Commonwealth funded projects.
Assessment of Greenhouse Gas Emissions
It is now a legislated requirement for IA to consider the country’s emissions reduction targets across our work program, including in our evaluation of infrastructure proposals. This means that all project proposals that are submitted to Infrastructure Australia must demonstrate their impact on greenhouse gas emissions.
The specific information can be found in our updated Guide to Assessing Greenhouse Gas Emissions.
A National Planning and Assessment Framework (NPAF) and peer review process
We will develop a National Planning and Assessment Framework that aims to harmonise business case development processes with jurisdictions and improve the efficiency of assurance processes while maintaining appropriate rigour. This will be developed in close consultation with representatives from state and territory governments who have responsibility for existing state assurance processes.
Post-Completion Reviews (PCRs)
IA will undertake PCRs on a selection of significant projects each year, to assess project outcomes and provide a national view of learnings from project planning and delivery.
Conducting audits & inquiries
IA will conduct regular audits to determine the adequacy, capacity and condition of nationally significant infrastructure. Our new legislation also empowers Commissioners to conduct inquiries into and report on matters relating to nationally significant infrastructure.
Moving Forward
While we finalise the implementation of our revised responsibility, it is business as usual. We will continue to receive, evaluate and respond to proposals according to the pre-existing frameworks and processes.
We will continue to keep you informed as we progress through this reform process. Should you require any further information in advance of consultation please contact engagement@infastructureaustralia.gov.au.
Regards,
Adam Copp
Chief Executive
Infrastructure Australia