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Politics
Callum Godde

'Back to the future': mega rail line under cash cloud

A rail project is under threat, as a state government's ability to fund it is called into question. (Joel Carrett/AAP PHOTOS)

A rail mega project's future may hinge on the outcome of the federal election, with Peter Dutton heaping more doubt on the delivery of crucial funding.

The federal opposition leader reignited a war of words on Monday over Melbourne's contentious Suburban Rail Loop, a 90km orbital rail line from Cheltenham to Werribee via the airport.

With the federal election fast approaching, Mr Dutton questioned the debt-laden state of Victoria's ability to pay its share to build the $34.5 billion eastern section, and declared a government he led would only invest in "legitimate projects".

A file photo of Peter Dutton
Opposition Leader Peter Dutton cast further doubt on the future of Melbourne's Suburban Rail Loop.

"The problem is that I think this has turned into a cruel hoax," he told Melbourne radio station 3AW.

"I don't think Jacinta Allan has a dollar to her name ... to put to the Suburban Rail Loop, and even (Prime Minister) Anthony Albanese can see that."

Premier Jacinta Allan said the comments were "grossly misinformed" and referenced state Labor's past infrastructure feuds with the Abbott-Turnbull-Morrison governments.

"It's like Peter Dutton has jumped in the Delorean and we've gone back to the future, where we have federal Liberal leaders saying 'we're going to keep dudding you, Victoria'," she said.

"As premier, I will fight every single day to get a fair share of infrastructure funding from federal governments."

A file photo of Jacinta Allan
An unimpressed Premier Jacinta Allan vowed to fight for 'a fair share' of federal funding.

Tunnelling contracts worth $3.6 billion and $1.7 billion were signed by the Victorian government in 2024, with boring machines expected to be switched on in 2026.

The state government has pledged $11.8 billion to build the first stage, with a third of funding expected to come from the federal government and the rest from unexplained "value capture" revenue.

A map of Melbourne's Suburban Rail Loop project.
Melbourne's Suburban Rail Loop project's future could hinge on the outcome of the federal election.

Mr Albanese committed $2.2 billion in federal cash to the project before the 2022 federal election but has made no further pledges, leaving a $20 billion shortfall.

The prime minister last week deflected questions when asked if the funding would be handed over before the federal election, which must be held by May 17.

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