WA gets Metronet funding from commonwealth

Western Australia has emerged from this year's federal budget with an extra $400 million in its infrastructure kitty.

Perth Children's Hospital under construction

WA has emerged from the federal budget with an extra $400 million in its infrastructure kitty. (AAP)

But it already knew that.

The state's new Labor government managed to get the commonwealth to agree to redirect funding from the Perth Freight Link to its preferred project - the Perth Metronet rail network.

Under Labor's funding model, Metronet needed the $416 million the commonwealth had pledged to the previous Liberal National government's Perth Freight Link road project.

The federal government will now give a total of $1.2 billion to the project.

New Premier Mark McGowan dumped that project as quickly as voters dumped the two-term Liberal Nationals government under Colin Barnett on March 11.

Mr McGowan last week said he wanted "a better deal for Western Australia" out of the federal budget, with transport infrastructure high on its agenda.

The Turnbull government announced just that two days before Tuesday's budget, describing the decision to redirect the money instead of fight the state government as "pragmatic".

But it's not that the federal Liberals are fans of the Metronet. They're trying to avoid being wiped out in WA at the next federal election.

Sunday's funding announcement also included extra money for other major road infrastructure projects in the state, including $237 million for the Kwinana Freeway.

The Turnbull government has also moved to smooth anger over the contentious GST distribution issue, by announcing a new Productivity Commission inquiry.

WA's share will languish at 34 cents for every dollar raised this year compared to about or above the 100 cent mark for the rest of the country, with Victoria and NSW around 90 cents.


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Source: AAP


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