2021 Reform Priority List - 2021 Australian Infrastructure Plan August 2021

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2021 Reform Priority List - 2021 Australian Infrastructure Plan August 2021
August 2021

2021 Reform
Priority List
2021 Australian Infrastructure Plan
2021 Reform Priority List - 2021 Australian Infrastructure Plan August 2021
Introduction
2021 Australian Infrastructure Plan                                                                     2021 Reform Priority List

Infrastructure Australia™ is an independent statutory body that is the leading source of research and

                                                                                                                                        Results
advice for governments, industry and the community on nationally significant infrastructure needs.
Infrastructure Australia has a mandate to prioritise and progress nationally significant infrastructure
investments. It leads reform on key issues including means of financing, delivering and operating
infrastructure and how to better plan and utilise infrastructure networks.

                                                                                                                                        1. Place
Infrastructure Australia has responsibility to strategically audit Australia’s nationally significant
infrastructure, and develop 15-year rolling infrastructure plans that specify national and state
level priorities.

Online

                                                                                                                                        2. Sustainability
ISBN: 978-1-925352-58-0

Ownership of intellectual property rights in this publication
Unless otherwise noted, copyright (and any other intellectual property rights, if any) in this publication
is owned by the Commonwealth of Australia (referred to below as Infrastructure Australia).
© Infrastructure Australia 2021

                                                                                                                                        3. Industry
Disclaimer
The material contained in this publication is made available on the understanding that the
Commonwealth is not providing professional advice, and that users exercise their own skill and
care with respect to its use, and seek independent advice if necessary.

                                                                                                                                        4. Transport
The Commonwealth makes no representations or warranties as to the contents or accuracy of
the information contained in this publication. To the extent permitted by law, the Commonwealth
disclaims liability to any person or organisation in respect of anything done, or omitted to be done,
in reliance upon information contained in this publication.

                                                                                                                                        5. Energy
Creative Commons licence
With the exception of the Coat of Arms, the copyright in this publication is licensed under a Creative
Commons Attribution 3.0 Australia Licence.
Creative Commons Attribution 3.0 Australia Licence is a standard form licence agreement that allows
you to copy, communicate and adapt this publication provided that you attribute the work to the

                                                                                                                                        6. Water
Commonwealth, clearly identify any changes or adaptations you have made to the work, and abide
by the other licence terms. A summary of the licence terms is available from http://creativecommons.
org/licenses/by/3.0/au/deed.en
The full licence terms are available from

                                                                                                                                    7. Telecommunications
http://creativecommons.org/licenses/by/3.0/au/legalcode

                                                                                                                                           and digital
This publication should be attributed in the following way:
© Infrastructure Australia 2021

Acknowledgements
Infrastructure Australia would like to acknowledge and thank the contributors to the 2021 Plan.
                                                                                                                                    infrastructure
                                                                                                                                       8. Social

David Tang, Helen Machalias, Inaara Jindani, James Robertson, Jim Chesterfield, Jonathan Cartledge,
Mark Merrick, Matthew Faber, Nadeia Romanovski, Peter Colacino, Robert Glennon, Rory Butler,
Sarah Holdsworth, Steve Brogan, Suzie Carruthers, Tim Mumford.
                                                                                                                                        9. Waste
                                                                                                                                        Icon glossary
                                                                                                                                        References

                                                                                                                               2
2021 Reform Priority List - 2021 Australian Infrastructure Plan August 2021
Introduction
2021 Australian Infrastructure Plan                                                              2021 Reform Priority List

                                                                                                                                 Results
                                                                                                                                 1. Place
                                                                                                                                 2. Sustainability
                                                                                                                                 3. Industry
                                                                                                                                 4. Transport
                                                                                                                                 5. Energy
                                                                                                                                 6. Water
Acknowledgement of Country                                  Note on the artwork
Infrastructure Australia acknowledges the Traditional       The artwork Moving Along Pathways was created by
Custodians of Australia, and pays respect to their Elders   Kamilaroi/Gamilaraay artist Dennis Golding, specifically
past, present and emerging. We pay respect to their         for Infrastructure Australia’s first Reconciliation Action

                                                                                                                             7. Telecommunications
continuing connection to land, and the continuation of      Plan. The artwork depicts examples of Australia’s first

                                                                                                                                    and digital
their cultural, spiritual and educational practices.        infrastructure.
In preparing for the future of our infrastructure, we       Pathways and river systems are prominent in the
acknowledge the importance of looking beyond the            artwork and reference the pathways First Nations
immediate past to learn from Aboriginal and Torres Strait   peoples formed on land and water for transport and
Islander people’s unique history of land management         communication of knowledge and stories. Images
                                                                                                                             infrastructure
                                                                                                                                8. Social

and settlement, art, culture and society that began over    of waterholes, campsites and boomerangs within the
65,000 years ago.                                           artwork acknowledge First Nations cultural practices,
                                                            technology and places for gathering that continue to be
                                                            operated today.
                                                                                                                                 9. Waste
                                                                                                                                 Icon glossary
                                                                                                                                 References

                                                                                                                         3
2021 Reform Priority List - 2021 Australian Infrastructure Plan August 2021
Introduction
2021 Australian Infrastructure Plan            2021 Reform Priority List

Table of contents

                                                                               Results
I. Introduction                           5

                                                                               1. Place
II. How we assessed reform impacts        8

III. Reform recommendations              19

                                                                               2. Sustainability
IV. Results and prioritisation           21

V. Reform impact summaries               35
1. Place-based outcomes for communities   36

                                                                               3. Industry
2. Sustainability and resilience          40
3. Industry productivity and innovation   43
4. Transport                              48

                                                                               4. Transport
5. Energy                                 52
6. Water                                  55
7. Telecommunications and digital         57
8. Social infrastructure                  60

                                                                               5. Energy
9. Waste                                  63

Icon glossary                            65

                                                                               6. Water
                                                                           7. Telecommunications
                                                                                  and digital
                                                                           infrastructure
                                                                              8. Social
                                                                               9. Waste
                                                                               Icon glossary
                                                                               References

                                                                      4
2021 Reform Priority List - 2021 Australian Infrastructure Plan August 2021
Introduction
2021 Australian Infrastructure Plan                                                                  2021 Reform Priority List

I. Introduction

                                                                                                                                     Results
                                                                                                                                     1. Place
   At a glance
   •   The 2021 Reform Priority List is a new publication      •   With the impacts of COVID-19 yet to be fully
       from Infrastructure Australia and is designed to            realised, and with increasing global uncertainty
       support the 2021 Australian Infrastructure Plan             and rapid change, recommendations are also

                                                                                                                                     2. Sustainability
       (2021 Plan).                                                assessed against future development scenarios
                                                                   informed by 2019 Audit future trends and findings
   •   Multi-criteria analysis has been used to
                                                                   in Infrastructure beyond COVID-19.2
       qualitatively assess the expected impacts of
       each of the 29 recommendations from the                 •   Reforms to Transport, Telecommunications
       2021 Plan against a consistent set of criteria that         and digital, Social infrastructure, Energy,

                                                                                                                                     3. Industry
       examine their impact on infrastructure services             and Sustainability and resilience perform
       for users, community sustainability, ease of                highly against future scenarios. Water, Waste,
       implementation and risks to success.                        Place-based outcomes for communities, and
                                                                   Industry productivity and innovation reforms
   •   These criteria were chosen, and weighted, by
                                                                   also perform well.
       1800 people and 200 businesses. They represent

                                                                                                                                     4. Transport
       the community’s priorities for areas of reform.         •   All 29 recommendations feature in the top 5
                                                                   listing of at least one of the 13 assessments,
   •   Multi-criteria analysis has identified Place,
                                                                   demonstrating the breadth of impact expected
       Industry and Water reforms as having the
                                                                   from implementing all of the 2021 Plan’s
       largest positive impact on outcomes that matter
                                                                   recommendations.
       to the community.

                                                                                                                                     5. Energy
                                                               •   Water reforms feature in the top 5 listings more
   •   In addition to the community the recommendations
                                                                   frequently than any of the other reforms.
       were assessed against 5 Australian Government
       policy priorities, 6 future scenarios and for the       •   Each recommendation’s detailed assessment,
       simplicity of deliverability.                               and its supporting evidence base, will be
                                                                   included in detailed plans that will be released for
   •   Reforms to support infrastructure Industry

                                                                                                                                     6. Water
                                                                   each of the six infrastructure sectors and three
       productivity and innovation and Water
                                                                   cross-sector themes.
       performed most consistently against the
       Australian Government policy priorities as
       outlined in Infrastructure Australia’s Statement of

                                                                                                                                 7. Telecommunications
       Expectations.1 Sustainability and resilience, Energy,

                                                                                                                                        and digital
       Telecommunications and digital, Transport and
       Place reforms also performed strongly.

                                                                                                                                 infrastructure
                                                                                                                                    8. Social
                                                                                                                                     9. Waste
                                                                                                                                     Icon glossary
                                                                                                                                     References

                                                                                                                            5
2021 Reform Priority List - 2021 Australian Infrastructure Plan August 2021
Introduction
2021 Australian Infrastructure Plan                                                                 2021 Reform Priority List

The Reform Priority List is designed                           Every recommendation in the Plan is subject to impact

                                                                                                                                    Results
                                                               assessment through multi-criteria analysis, as well as
to help guide decision-makers                                  theory of change, which has been used to identify
The 2021 Plan, supported by the 2021 Reform Priority           reform pathways and articulate the activities that build
List and 2021 Implementation Pathway, provides a               towards this change.
detailed evidence-based plan for governments to                Theory of change articulates how the activities in each

                                                                                                                                    1. Place
implement reforms that will create meaningful outcomes         recommendation will lead to the intended outcomes by
for all Australians.                                           linking the logical steps together over the 2021 Plan’s
The 2021 Reform Priority List assesses the relative            15-year timeline. Multi-criteria analysis identifies the
impact of proposed reforms. It is intended to help             expected impacts of each recommendation.

                                                                                                                                    2. Sustainability
policymakers understand the positive impacts,
trade‑offs and implementation challenges through a             A pathway to reform that is
wide‑ranging set of criteria and is supported by analysis
in the detailed plans.
                                                               pragmatic and practical
                                                               Infrastructure Australia has developed the 2021 Plan
To help inform government prioritisation and
                                                               using a user-centred design process, as shown in
planning, the 2021 Reform Priority List also:

                                                                                                                                    3. Industry
                                                               Figure 1.
•   identifies where reforms align with stated
    Australian Government policy priorities                    The 2021 Plan is founded on the discovery and definition
                                                               of issues and evidence set out in the 2019 Audit, which
•   indicates where reforms would be expected to have          describes Australia’s infrastructure challenges and
    greater impact under different future scenarios.           opportunities.

                                                                                                                                    4. Transport
                                                               The first phase of the 2021 Plan developed a
The right tools for policy development                         vision for Australia in response to these challenges
The 2021 Plan draws on established policy development          and opportunities by engaging and partnering
frameworks to identify deliverable reforms that support        with stakeholders with deep knowledge of the
quality of life for all Australians, including theory of       required changes.

                                                                                                                                    5. Energy
change and multi-criteria analysis.                            The potential reforms were then refined and prioritised
The 2021 Reform Priority List employs multi-criteria           by applying a theory of change approach. This
analysis to identify the expected impacts of each reform       resulted in the 29 recommendations in the 2021 Plan.
recommendation.                                                Reforms have been defined by recommendations,
                                                               outcome and activities, with each assigned a time
Multi-criteria analysis is a tool used in policy and project

                                                                                                                                    6. Water
                                                               period, a geographic impact and a change agent.
prioritisation processes to assess and compare options.
                                                               Change agents are categorised into:
It is often used to complement and target quantitative
analyses such as cost–benefit analysis and regulatory          •   proposed sponsor: facilitate, coordinate and
impact statements, which should be undertaken by                   champion the recommendation

                                                                                                                                7. Telecommunications
agencies implementing a recommendation.                        •   proposed lead: deliver specific activities or lead

                                                                                                                                       and digital
For the 2021 Plan, Infrastructure Australia has used               related outcomes
multi-criteria analysis to assess:                             •   support: share ownership, contributions or
•   the trade-offs between beneficial impacts for                  knowledge to enable the reform process.
    community sustainability and services for users,           Multi-criteria analysis has been used to assess the
                                                                                                                                infrastructure

    against the ease and risk of implementation
                                                                                                                                   8. Social

                                                               impact of reforms. These assessments are included
•   the impact of reforms against a set of criteria            in the 2021 Reform Priority List.
    designed to identify these benefits, risks and
    challenges
•   alignment of recommendations with a set
                                                                                                                                    9. Waste

    government policy priorities
•   the recommendations that are likely to be resilient to
    a set of future scenarios.
In addition to using multi-criteria analysis to assess
                                                                                                                                    Icon glossary

the recommendations in the 2021 Plan, Infrastructure
Australia has recently included multi-criteria analysis
guidance in the refreshed 2021 edition of the
Infrastructure Australia Assessment Framework.3
                                                                                                                                    References

                                                                                                                           6
2021 Reform Priority List - 2021 Australian Infrastructure Plan August 2021
Introduction
2021 Australian Infrastructure Plan                                                                                                                                                                                                                       2021 Reform Priority List

Figure 1: User-centred design makes the reforms in the 2021 Plan relevant and actionable

                                                                                                                                                                                                                                                                                                                                         Results
                                                                                                                                                                              Activities
 Issue                    Evidence                                                                                                            Stakeholders                                 Outputs             Outcomes                                            Impacts
                                                                                                                                                                              and input

                                                                                                                                                                                                                                                                                                                                         1. Place
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                                                                                                                                                                                                                    Australia’s future
                                                                                                                                                                                                                    infrastructure needs                                     2021 Australian Infrastructure Plan

                                                                                                                                                                                                                    2021 Australian Infrastructure Plan

         Discover           Define         Infrastructure beyond COVID-19
                                           A national study on the impacts of the pandemic on Australia

                                           An Interim Report for the 2021 Australian Infrastructure Plan
                                                                                                                                                                          Develop          Deliver
                                           December 2020                                                     Produced in collaboration with                     1

                                                                                                                                                                                                                                                          Priorities and
                                                                                                                                                                                                                                                          Reforms for our
                                                                                                                                                                                                                                                          nation’s future    Version no. 01

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                                                                                                                                              opportunities
                                                                                                                                              for Australia’s
                                                                                                                                              infrastructure
                                                                                                                                              services

                                                                                                                                                                                                                                                                                                                                         4. Transport
                                           Challenges and                                                                                                                                                             Reform     Impact assessment
                                            opportunities                                                                                                                                                        recommendations     of reforms

Subsequent detailed work should inform implementation

                                                                                                                                                                                                                                                                                                                                         5. Energy
Together, the 2021 Plan and the 2021 Reform Priority                                                                                                                            These assessments will then be the basis for
List present an evidence-based plan for achieving                                                                                                                               policy assessment processes such as regulatory
better outcomes for all Australians. These documents                                                                                                                            impact statements and cost–benefit analyses, and
should inform subsequent detailed assessments                                                                                                                                   should be used to drive the subsequent design and
of the activities and options required to implement                                                                                                                             implementation of reforms.
the recommendations.

                                                                                                                                                                                                                                                                                                                                         6. Water
                                                                                                                                                                                                                                                                                                                                     7. Telecommunications
                                                                                                                                                                                                                                                                                                                                            and digital
                                                                                                                                                                                                                                                                                                                                     infrastructure
                                                                                                                                                                                                                                                                                                                                        8. Social
                                                                                                                                                                                                                                                                                                                                         9. Waste
                                                                                                                                                                                                                                                                                                                                         Icon glossary
                                                                                                                                                                                                                                                                                                                                         References

                                                                                                                                                                                                                                                                                                                                 7
2021 Reform Priority List - 2021 Australian Infrastructure Plan August 2021
Introduction
2021 Australian Infrastructure Plan                                                                  2021 Reform Priority List

II. How we assessed reform impacts

                                                                                                                                     Results
                                                                                                                                     1. Place
Assessing the impact of policy recommendations
Multi-criteria analysis is often used in policy and            It provides a strategic framework for qualitatively
project prioritisation processes to complement                 assessing the potential impact and implementation
and target quantitative analyses (for example,                 challenges of each reform. Our aim is to help inform,

                                                                                                                                     2. Sustainability
cost–benefit analyses) that should be undertaken before        rather than replace, a quantitative assessment such as a
implementing significant reform.                               business case or regulatory impact statement before a
                                                               decision is made.
Infrastructure Australia has used multi-criteria analysis as
a framework for qualitatively identifying the impacts and      This qualitative analysis is particularly important in
trade-offs for the recommendations in the 2021 Plan.           the context of policy recommendations, where it is

                                                                                                                                     3. Industry
We have also recently included best-practice guidance          essential to consider impacts that are difficult or costly to
on its use in the Infrastructure Australia Assessment          monetise. These include:
Framework.4
                                                               •   impacts related to governance or social equity
This multi-criteria analysis framework identifies the              issues, such as service availability across different
impacts of the recommendations across benefits for                 places

                                                                                                                                     4. Transport
service users and community sustainability, risk and
                                                               •   challenges, such as governance capacity
ease of implementation.
                                                               •   risks, such as community acceptance, that could not
                                                                   be captured in a quantitative analysis.

                                                                                                                                     5. Energy
                                                                                                                                     6. Water
                                                                                                                                 7. Telecommunications
                                                                                                                                        and digital
                                                                                                                                 infrastructure
                                                                                                                                    8. Social
                                                                                                                                     9. Waste
                                                                                                                                     Icon glossary
                                                                                                                                     References

                                                                                                                            8
2021 Reform Priority List - 2021 Australian Infrastructure Plan August 2021
Introduction
2021 Australian Infrastructure Plan                                                                                                                               2021 Reform Priority List

                                                                                                                                                                                                    Results
    Where else is multi-criteria analysis used?
    Multi-criteria analysis is used frequently by                                                      •   The Victorian Guide to Regulation, which identifies
    government agencies to assess projects and policies.                                                   multi-criteria analysis as an appropriate tool for
    Examples include:                                                                                      assessing policy effects that cannot easily be
                                                                                                           monetised, such as social equity outcomes.7

                                                                                                                                                                                                    1. Place
    •     Transport for NSW’s Principles and Guidelines for
          Economic Appraisal of Transport Investment and                                               •   The Queensland Government’s Smarter
          Initiatives, which describes multi-criteria analysis                                             Solutions: Multi-criteria Analysis Tool, which
          as an evaluation tool used for decision-making                                                   provides decision-makers with a framework
          between a range of projects or options that are                                                  for undertaking multi-criteria analysis, ensuring

                                                                                                                                                                                                    2. Sustainability
          not easily quantifiable.5                                                                        that a consistent approach is applied and that
                                                                                                           the structure of decision problems effectively
    •     The North East Link Business Case Options
                                                                                                           captures the benefits and impacts of low-cost and
          Assessment, which used multi-criteria
                                                                                                           non‑infrastructure solutions.8
          analysis to test the strategic merit of options
          before quantitative cost–benefit analysis

                                                                                                                                                                                                    3. Industry
          was undertaken.6

                                                                                                                                                                                                    4. Transport
        Principles and Guidelines for Economic Appraisal
        of Transport Investment and Initiatives
        Transport Economic Appraisal Guidelines

                                                                                                                Victorian Guide to Regulation

                                                                                                                           A handbook
                                                                                                                           for policy-makers
                                                                                  Appendix D
                                                                 C

                                                                                                                           in Victoria
                                                                 M

                                                                 Y

                                                                          Options Assessment
                                                                CM

                                                                MY

                                                                CY

                                                                CMY

                                                                                                                                                                                                    5. Energy
                                                                 K

                                                                                       February 2018
                                                                      B

                                                                                                                                                Smarter solutions
                                                                                                                                                Multi-Criteria Analysis Tool – User Guide
                                                                                                                                                June 2019

                                                   March 2016

                                                                                                                                                                                                    6. Water
    Source: Transport for NSW (2016), Victorian Government (2016, 2018), Queensland Government (2019)

                                                                                                                                                                                                7. Telecommunications
                                                                                                                                                                                                       and digital
Impact criteria focus on what matters to the community
The multi-criteria analysis framework contains                                                         •   Ease of implementation, which helps governments
33 criteria in 13 impact categories, against which                                                         understand the potential delivery challenges and
                                                                                                                                                                                                infrastructure

each recommendation has been assessed.                                                                     trade-offs across the costliness and complexity
                                                                                                                                                                                                   8. Social

                                                                                                           of the reform, and the capacity of government and
The criteria were selected through specialist input
                                                                                                           industry to deliver it.
and by empowering 1,800 people and 200 businesses in
a focused engagement process to prioritise criteria that                                               •   Risks to success, which indicate risks for the
are most meaningful to the community.                                                                      implementation of policy recommendations across
                                                                                                           community and stakeholder acceptance, the level
                                                                                                                                                                                                    9. Waste

As shown in Table 1, these criteria provide a framework
                                                                                                           of confidence in the analysis of impacts, and the
for qualitatively assessing impacts across:
                                                                                                           extent of government control over the success of the
•   Service users, categorised into impacts on quality,                                                    reform.
    access and affordability of services, which was the
    framework applied by the 2019 Audit.
                                                                                                                                                                                                    Icon glossary

•   Community sustainability, assessed through a
    quadruple-bottom-line approach to economic,
    environmental, social and governance impacts for
    community sustainability, as outlined in Infrastructure
    Australia’s Sustainability Principles.9
                                                                                                                                                                                                    References

                                                                                                                                                                                            9
2021 Reform Priority List - 2021 Australian Infrastructure Plan August 2021
Introduction
2021 Australian Infrastructure Plan                                                                             2021 Reform Priority List

Table 1: Each recommendation is assessed against 33 impact criteria

                                                                                                                                                Results
 Impact themes             Impact categories   Impact criteria

 Service users             Quality             1. Provides a fast service that is easy to use

                                                                                                                                                1. Place
                                               2. Services available with minimal disruption and variance in quality

                                               3. Enhanced safety and security for users

                           Access              4. Comparable services across all places

                                                                                                                                                2. Sustainability
                                               5. Services on demand when users need them

                                               6. Improved access for disadvantaged groups

                           Affordability       7. Pricing reflects usage and costs to deliver the service

                                               8. Affordability for an average Australian household

                                                                                                                                                3. Industry
                                               9. Costs distributed fairly based on users’ ability to pay

 Community                  Economic           10. Improved efficiency
 sustainability
                                               11. Improved access to a higher-quality workforce

                                                                                                                                                4. Transport
                                               12. Increases national employment or Gross Domestic Product (GDP)

                            Environmental      13. Supports waste reduction and circular economy

                                               14. Reduced harmful air and water pollution

                                                                                                                                                5. Energy
                                               15. Reduced greenhouse gas emissions

                            Social             16. Opportunities for education and employment

                                               17. Reduced anti-social behaviour and crime

                                               18. Improved health outcomes

                                                                                                                                                6. Water
                            Governance         19. Improved planning and decision-making within government

                                               20. Transparency of decision-making

                                                                                                                                            7. Telecommunications
                                               21. Consideration of the needs of local communities and businesses

                                                                                                                                                   and digital
 Ease of                    Costliness         22. Minimises upfront and ongoing costs
 implementation
                                               23. Minimises financial burden on the taxpayer

                            Complexity         24. Minimises time to implement
                                                                                                                                            infrastructure
                                                                                                                                               8. Social

                                               25. Minimises complexity of implementation

                            Capacity           26. Capability of government to implement

                                               27. Capacity of industry to deliver

 Risks to success           Acceptance         28. Community acceptance
                                                                                                                                                9. Waste

                            Confidence         29. Expected impacts are clear

                                               30. Confidence that benefits will be achieved

                                               31. Confidence that reform will be successful during COVID-19 recovery
                                                                                                                                                Icon glossary

                                               32. Quality and availability of supporting evidence

                            Control            33. Extent of government control over success of reform
                                                                                                                                                References

                                                                                                                                      10
Introduction
2021 Australian Infrastructure Plan                                                                           2021 Reform Priority List

Impacts assessed on a five‑point scale

                                                                                                                                                Results
Each recommendation is scored against the 33 criteria               It shows the extent to which the suggested
as having a high negative, low negative, neutral, low               recommendation minimises the upfront and ongoing
positive or high positive impact, as shown in Table 2.              costs of implementation.
Scoring is a qualitative assessment of the impact, based            The scoring and evidence for each of the 33 criteria

                                                                                                                                                1. Place
on available evidence and supported by specialist                   will be included in the detailed plans for each sector
judgement.                                                          or cross-sectoral issues.
As an example of how the five-point scale is applied, the           Infrastructure Australia will also be releasing a guidance
table includes the intended qualitative meaning of each             note on how impacts have been assessed against the

                                                                                                                                                2. Sustainability
score for an example criterion.                                     five-point scale in each criterion. This will be available
                                                                    on the Infrastructure Australia website.

Table 2: Each criterion is graded on a five‑point scale

                                                                                                                                                3. Industry
 Qualitative           Score                      Description                                      Example criterion: ‘minimises
 rating                                                                                            upfront and ongoing costs’

                                                                                                   Large reduction in the total
 High                                         5   High positive support for meeting the criteria   costs from what would

                                                                                                                                                4. Transport
                                                                                                   otherwise be spent

                                                                                                   Small, or potential, reduction
 Low                                      4       Low positive support for meeting the criteria    in financial cost, compared to
                                                                                                   business as usual

                                                                                                                                                5. Energy
                                                                                                   No net change to financial cost,
 No impact                            3           No support for meeting the criteria (N/A)
                                                                                                   compared to business as usual

                                                                                                   Requires some further investment,
 Low negative                  2                  Low negative support for meeting the criteria
                                                                                                   above business as usual

                                                                                                                                                6. Water
                                                                                                   Requires substantially more
 High negative          1                         High negative support for meeting the criteria   financial resources than would
                                                                                                   otherwise be spent

                                                                                                                                            7. Telecommunications
                                                                                                                                                   and digital
                                                                                                                                            infrastructure
                                                                                                                                               8. Social
                                                                                                                                                9. Waste
                                                                                                                                                Icon glossary
                                                                                                                                                References

                                                                                                                                       11
Introduction
2021 Australian Infrastructure Plan                                                                                 2021 Reform Priority List

Evidence-based qualitative assessment

                                                                                                                                                      Results
While the impact assessment scores are qualitative, they                   Evidence for long-term reforms is often qualitative or
are evidence-based.                                                        circumstantial, but we encourage and support change
                                                                           agents to undertake more detailed and quantitative
Our analysis is complemented by examining detailed
                                                                           assessments as part of implementing the reforms.
studies, pilots and deployments of the proposed reforms

                                                                                                                                                      1. Place
domestically and in other jurisdictions. This evidence                     Table 3 shows how the scoring and use of evidence will
is set out in the forthcoming detailed plans for each                      be presented in the detailed plans.
sector and cross-sector, which will be released after the
2021 Plan to provide further evidence to support our
case for reform.

                                                                                                                                                      2. Sustainability
Table 3: C
          riteria are supported by justifications and evidence

 Impact criteria              Score                Justification                                  Evidence

                                                                                                                                                      3. Industry
 ‘Minimises upfront and       Qualitative scale,   Provides a qualitative justification for the   References as evidence that supports the
 ongoing costs’               as per Table 2       impact assessment score that draws on          assessment of the criterion
                                                   relevant evidence where appropriate

                                                                                                                                                      4. Transport
Making impact assessment work for policymakers
To help inform policy decision-making, we have used                        These survey results also helped us to understand the
multi-criteria analysis to be able to compare the reforms.                 relative importance of each criterion relative to each

                                                                                                                                                      5. Energy
We prioritised reforms in 13 different ways, in order to                   other. We used the average of the importance ratings
indicate how they deliver on the Australian community’s                    (out of 5) to produce weightings for each criterion,
priorities, align well with Australian Government policy                   adding to a total of 100%. By using this to produce
priorities, and impact under potential future scenarios.                   aggregate scores for each reform, we were able to
                                                                           determine which reforms have the greatest impact on
Identifying which reforms best                                             the balance of community priorities.

                                                                                                                                                      6. Water
deliver on community priorities                                            We found that the community placed high importance
                                                                           on most criteria, which meant that most criteria
To understand how the Australian community                                 contributed equally to the total. In summary, for

                                                                                                                                                  7. Telecommunications
prioritise costs, risks and benefits of infrastructure,                    assessing reforms against community priorities, we
we conducted a 2,000-member community survey

                                                                                                                                                         and digital
                                                                           used these community priorities weightings:
conducted in June 2020.10 We asked individuals and
businesses to rank and rate the importance of four                         •   service user impacts: 25.6%
impact themes (service user impacts, community                             •   community sustainability impacts: 25.6%
sustainability impacts, ease of implementation and
risk), as well as a long list of impact criteria that                      •   ease of implementation: 23.8%
                                                                                                                                                  infrastructure
                                                                                                                                                     8. Social

were relevant to them (service user and community                          •   risks to success: 25.0%
sustainability impacts). We used these results to inform
which criteria were most important to the community,                       The 6 ease of implementation and 6 risk criteria were
resulting in the 33 impact criteria shown in Table 1.                      equally weighted within their impact theme, while we
                                                                           used the survey results to set the weightings of the 21
                                                                           service user and community sustainability criteria.
                                                                                                                                                      9. Waste
                                                                                                                                                      Icon glossary
                                                                                                                                                      References

                                                                                                                                             12
Introduction
2021 Australian Infrastructure Plan                                                                             2021 Reform Priority List

Reforms can align with different policy priorities

                                                                                                                                                Results
As the successful implementation of these                           •   provides or underpins services that deliver economic
recommendations depends on government action over                       and social benefits to Australians
a long time, recommendations have been assessed
                                                                    •   has an important role in shaping cities that are
for their alignment to the explicit policy priorities of the
                                                                        productive and liveable
Australian Government.

                                                                                                                                                1. Place
                                                                    •   provides connectivity to regional and remote parts of
Infrastructure Australia’s Statement of Expectations
                                                                        Australia.
provides a useful reference point for understanding
these priorities.11                                                 These have been translated into five policy priorities
                                                                    against which to assess the impact of recommendations,

                                                                                                                                                2. Sustainability
As well as the community-weighted baseline assessment,
                                                                    as shown in Table 4.
we assessed recommendations against the stated
Australian Government objectives that infrastructure:

Table 4: How policy priorities translate from the Statement of Expectations

                                                                                                                                                3. Industry
    Policy priority                       Description

                                          Recommendations most likely to provide economic benefits to Australians, including

                                                                                                                                                4. Transport
            Economic benefits
                                          increased national employment or GDP

                                          Recommendations most likely to increase quality of life to Australians, including improved
            Social benefits              access for disadvantaged groups, health outcomes, affordability, and opportunities for
                                          education and employment

                                                                                                                                                5. Energy
                                          Recommendations most likely to make cities more productive, through efficiency benefits,
                                          higher-quality workforce or greater services on demand
            Productive cities
                                          Only recommendations relevant to Fast-growing Cities or Smaller Cities and Regional Centres
                                          are considered

                                                                                                                                                6. Water
                                          Recommendations most likely to make cities more liveable, through addressing social,
                                          environmental and governance outcomes
            Liveable cities
                                          Only recommendations relevant to Fast-growing Cities or Smaller Cities and Regional Centres

                                                                                                                                            7. Telecommunications
                                          are considered

                                                                                                                                                   and digital
                                          Recommendations most likely to increase connectivity and equality of outcomes between
            Connected regions            regions
                                          Recommendations that only impact Fast-growing Cities are not considered
                                                                                                                                            infrastructure
                                                                                                                                               8. Social

A multi-criteria analysis framework allows weighting                •   de-weight or ignore criteria that are not relevant to
adjustments to reflect different priorities. This has been              it (for example, ‘increases national employment or
applied to the five policy priorities. Adjusting weightings             Gross Domestic Product’ is ignored in the ‘social
for priorities maintains the evidence-based impact                      benefits’ policy priority weighting profile).
assessments in the 33 criteria while increasing or
                                                                                                                                                9. Waste

                                                                    Changing the weightings still draws on the same
decreasing the weighting of the impact according to
                                                                    evidence-based impact assessment scoring as the
what aligns with each policy priority.
                                                                    community-weighted baseline.
We assessed the impact against each policy priority by
                                                                    To determine performance against the policy priorities,
re-weighting the 33 criteria to either:
                                                                    the reforms were assessed against the same criteria
                                                                                                                                                Icon glossary

•     increase the weighting of criteria that support               with new weightings.
      the priority (for example, ‘improved access for
                                                                    Table 5 explains how criteria have been re‑weighted
      disadvantaged groups’ is strongly weighted
                                                                    under each policy priority
      under the ‘social benefits’ policy priority
      weighting profile); or
                                                                                                                                                References

                                                                                                                                       13
Introduction
2021 Australian Infrastructure Plan                                                                         2021 Reform Priority List

Table 5: Each policy priority emphasises specific criteria through weightings

                                                                                                                                            Results
 Impact              Impact           Impact
 themes              category         criteria

                                                                         Economic   Social     Productive Liveable     Connected

                                                                                                                                            1. Place
                                                                         benefits   benefits   cities     cities       regions

 Service users       Quality          1. Provides a fast service that
                                         is easy to use                                                      High          Low

                                                                                                                                            2. Sustainability
                                      2. Services available with
                                         minimal disruption and                                              High          High
                                         variance in quality
                                      3. E
                                          nhanced safety and
                                         security for users                            Low                   High

                     Access           4. Comparable services

                                                                                                                                            3. Industry
                                         across all places                             Low                                 Max

                                      5. S
                                          ervices on demand when
                                         users need them                                          High       High          Low

                                      6. Improved access for
                                          disadvantaged groups                         Max

                                                                                                                                            4. Transport
                     Affordability    7. Pricing reflects usage
                                         and costs to deliver the           Low                   High
                                         service
                                      8. Affordability for an
                                         average Australian                 Low        High                  Low

                                                                                                                                            5. Energy
                                         household
                                      9. Costs distributed fairly
                                         based on users’ ability                       High
                                         to pay
 Community           Economic         10. Improved efficiency
 sustainability                                                             Low                   Max

                                                                                                                                            6. Water
                                      11. Improved access to a
                                           higher‑quality workforce         Low                   High

                                      12. Increases national
                                                                            Max                   Low

                                                                                                                                        7. Telecommunications
                                           employment or GDP

                                                                                                                                               and digital
                     Environmental    13. Supports waste reduction
                                          and circular economy                                               Low

                                      14. R
                                           educed harmful air and
                                          water pollution                                                    High

                                      15. Reduced greenhouse
                                                                                                                                        infrastructure

                                                                                                             Low
                                                                                                                                           8. Social

                                          gas emissions

                     Social           16. O
                                           pportunities for
                                          education and                                High                  High
                                          employment
                                      17. R
                                           educed anti-social
                                          behaviour and crime                          Low                   High
                                                                                                                                            9. Waste

                                      18. Improved health
                                      outcomes                                         High                  High

                     Governance       19. Improved planning and
                                           decision-making                                        Low
                                                                                                                                            Icon glossary

                                      20. Transparency of
                                          decision‑making

                                      21. C
                                           onsideration of the
                                          needs of local communities                   High                  Low           High
                                          and businesses
                                                                                                                                            References

                                                                                                                                  14
Introduction
2021 Australian Infrastructure Plan                                                                                                  2021 Reform Priority List

                                                                                                                                                                        Results
 Impact                Impact               Impact
 themes                category             criteria

                                                                                Economic         Social          Productive Liveable              Connected
                                                                                benefits         benefits        cities     cities                regions

                                                                                                                                                                        1. Place
 Ease of               Costliness           22. Minimises upfront and
 implementation                                 ongoing costs                       High

                                            23. Minimises financial
                                                burden on the taxpayer               Low

                                                                                                                                                                        2. Sustainability
                       Complexity           24. M
                                                 inimises time to
                                                implement

                                            25. Minimises complexity
                                                of implementation

                       Capacity             26. Capability of government

                                                                                                                                                                        3. Industry
                                                 to implement                        Low

                                            27. Capacity of industry to
                                                 deliver                             Low

 Risks to              Acceptance           28. Community acceptance
 success                                                                                              Low

                                                                                                                                                                        4. Transport
                       Confidence           29. Expected impacts are
                                            clear                                    Low

                                            30. Confidence that benefits
                                                will be achieved                     Low

                                                                                                                                                                        5. Energy
                                            31. C
                                                 onfidence that reform
                                                will be successful during           High             High
                                                COVID-19 recovery
                                            32.Quality and availability of
                                               supporting evidence

                       Control              33. E
                                                 xtent of government

                                                                                                                                                                        6. Water
                                                control over success of
                                                reform

Note: Only the criteria that are most relevant for addressing the policy priority retains a weighting. The relevant weightings are then redistributed from the

                                                                                                                                                                    7. Telecommunications
community priorities weightings, according to a tiered hierarchy of their relevance. In order of importance, the tiers are Max, High and Low, and the weightings
by policy priority sum to 100%.

                                                                                                                                                                           and digital
                                                                                                                                                                    infrastructure
                                                                                                                                                                       8. Social
                                                                                                                                                                        9. Waste
                                                                                                                                                                        Icon glossary
                                                                                                                                                                        References

                                                                                                                                                               15
Introduction
2021 Australian Infrastructure Plan                                                                                 2021 Reform Priority List

Some reforms may be easier                                             Different future developments could

                                                                                                                                                     Results
to implement                                                           affect these impacts
The risks and ease of implementation impacts were                      Infrastructure Australia’s Statement of Expectations also
included in the multi-criteria analysis to allow for                   asked Infrastructure Australia to consider a range of
consideration of the challenges and trade-offs of                      possible future developments.12

                                                                                                                                                     1. Place
implementing the recommendations.
                                                                       We developed five scenarios depicting possible futures
It is also useful to consider the deliverability of                    to consider their potential effects on recommendation
recommendations. This helps policy-makers consider                     impacts (see Table 6).
which reforms are likely to face the lowest barriers
                                                                       In line with the qualitative nature of multi-criteria analysis,

                                                                                                                                                     2. Sustainability
to implementation, and those reforms that could be
                                                                       scenarios describe how the world could be qualitatively
accelerated.
                                                                       different to our current baseline assumptions.
The reforms assessed through the multi-criteria analysis
                                                                       The assumptions used in the baseline assessment were
as having a relatively high-ease, low-risk implementation
                                                                       drawn from the Australian Government 2021–2022
are identified as ‘low-hanging fruit’.
                                                                       Budget Paper No. 1.13 The scenarios were qualitatively

                                                                                                                                                     3. Industry
This assessment only considers the 12 criteria within the              defined using the seven future trends identified in the
impact themes of ‘risks’ and ‘ease of implementation’.                 2019 Audit, as well as COVID-19 recovery scenarios,
                                                                       as identified in Infrastructure Beyond COVID-19
                                                                       (see Table 7).

                                                                                                                                                     4. Transport
Table 6: Five future Australian scenarios that could affect the impacts of recommendations

 Future state                         Description

                                                                                                                                                     5. Energy
                                      Budget 2021–22 Outlook.14 Recent record rates of economic growth are expected to moderate but
             Baseline
                                      remain higher than global averages, and COVID-19 vaccines are fully available by the end of 2021.

             Bounce back to           Faster global and local recovery from the COVID-19 pandemic. Fast population growth, greater

                                                                                                                                                     6. Water
             rapid recovery           centralisation in cities, trend economic growth and greater return to cities and offices.

                                      Longer-lasting global pandemic and additional domestic outbreaks. Slower population growth,

                                                                                                                                                 7. Telecommunications
             Slow recovery from
                                      below trend economic growth for the medium-term, significantly less international movement of
             a sustained pandemic
                                      people and some trade effects.

                                                                                                                                                        and digital
                                      Faster population growth in regions. Lower demand for inner city business and residential locations
             Regionalised Australia
                                      and significantly more working from home.                                                                  infrastructure
                                                                                                                                                    8. Social

                                      Faster adoption of digital technologies by consumers and society. A higher rate of digital
             Digital Australia
                                      transformation, faster-closing digital divide, greater digital and technological literacy.
                                                                                                                                                     9. Waste

                                      Increased risk and impacts of disaster. Greater incidence of natural disasters, increased political
             Destabilised world
                                      instability, increased cyberwarfare and cybercrime.
                                                                                                                                                     Icon glossary
                                                                                                                                                     References

                                                                                                                                            16
Introduction
2021 Australian Infrastructure Plan                                                                                     2021 Reform Priority List

Table 7: T
          he five future scenarios are qualitatively defined

                                                                                                                                                         Results
  Future trend           Baseline                           Future scenario

                                                                                                                                                         1. Place
                                                            Bounce back Slow                   Regionalised Digital                Destabilised
                                                            to rapid    recovery               Australia    Australia              world
                                                            recovery    from a
                                                                        sustained

                                                                                                                                                         2. Sustainability
                                                                        pandemic

 Quality of life        Household consumption               Faster rising     Greater                                              Shocks reduce
 and equity             returns to trend in 2022. Greater   quality of life   inequality;                                          quality of life
                        impacts on young and female                           lower quality
                        Australians.15                                        of life

                                                                                                                                                         3. Industry
 Cost of living         Wage growth remains low until       Higher income     Lower income     Lower cost of
 and incomes            at least 2022. CPI moderate.        growth            growth           living pressure
                        Unemployment 5.5% 2021 to                                              in cities, but
                        4.5% 2024.16                                                           higher in
                                                                                               regional areas

                                                                                                                                                         4. Transport
 Community              Trust in government highest in      Higher trust in   Lower trust in                     Greater           Lower trust in
 preferences and        13 years at 55%.17                  government        government                         participation     government
 expectations                                               due to            due to                             and               due to
                                                            successful        ongoing                            transparency      ongoing crises
                                                            response          issues                             through
                                                                                                                 technology

                                                                                                                                                         5. Energy
 Economy and            GDP expected to grow by             Faster growth;    Slower                             Higher            Shocks reduce
 productivity           4.25% in 2021–22 then               higher            growth; lower                      productivity      productivity
                        moderate to 2.5%. Slow              productivity      productivity                       growth due        and GDP
                        productivity growth.18              growth            growth                             to technology     growth
                                                                                                                 adoption

 Population and         Population growth is expected       Faster            Slower           Population

                                                                                                                                                         6. Water
 participation          to fall to 0.1% in 2020–21 and      population        population       growth
                        0.2% in 2021–22, the slowest        growth and        growth and       centred in
                        growth in over a century.19         net overseas      net overseas     regions rather
                                                            migration         migration        than cities

                                                                                                                                                     7. Telecommunications
 Technology             No unexpected step changes                                                               Faster change

                                                                                                                                                            and digital
 and data               in adoption. Technology                                                                  and adoption;
                        changes with trends over time,                                                           higher literacy
                        with Australia behind global
                        best practice.

 Environment            Some increased recurrence           Faster            Slower           Greater           Faster            Faster climate
                                                                                                                                                     infrastructure

 and resilience         of natural disasters,               consumption       consumption      exposure of       change and        change;
                                                                                                                                                        8. Social

                        environmental degradation           growth            growth           population        adoption of       bigger
                        continuing.                         increases         reduces          to natural        low-emissions     disasters;
                                                            degradation       degradation      disasters         technologies      more frequent
                                                                                                                                   shocks

  COVID-19               Localised outbreaks occur          Faster            Slower
                         but are largely contained.         return to         return to
                                                                                                                                                         9. Waste

                         A population-wide Australian       international     international
                         vaccination program fully in       mobility;         mobility;
                         place by end 2021. 20              faster global     slower
                                                            economic          global
                                                            recovery          economic
                                                                              recovery
                                                                                                                                                         Icon glossary
                                                                                                                                                         References

                                                                                                                                                17
Introduction
2021 Australian Infrastructure Plan                                                               2021 Reform Priority List

Different future developments may alter the assumptions      This analysis is only intended as an indicative

                                                                                                                                  Results
that underpin scoring in a multi-criteria analysis, so       exploration of how the evidence-based assessment
have not been re-weighted in the baseline scorings to        could change under different potential future
account for future developments. Our analysis therefore      developments, and can be used to inform more detailed
reconsiders individual scoring.                              analysis during implementation.
We indicatively scored each recommendation

                                                                                                                                  1. Place
against the 33 criteria to determine whether its impact      Some reforms maintain their impact
would be better, worse, or unchanged if each scenario        across all different versions of the future
eventuated.                                                  These five scenarios represent different versions of the
Using the baseline weightings, the more criteria that        future, which may or may not come to fruition. In light of

                                                                                                                                  2. Sustainability
were assessed as better or worse for a recommendation        this uncertainty, recommendations that remain impactful
under a scenario, then the better or worse that              regardless of what manifests have also been identified.
recommendation ranked under the future scenario.             This ‘no regrets’ assessment has been made where a
We undertook this process separately from re‑weighting       recommendation’s impact is only better, or unchanged,
the evidence-based baseline assessment and based it          across all five scenarios. The overall impact of the
                                                             recommendation is considered for this assessment. This

                                                                                                                                  3. Industry
on the judgement of sector specialists.
                                                             means that while a recommendation’s impact may be
It would not be feasible to compile a full evidence base     reduced for one or two criteria, it can still be considered
like the community-weighted baseline assessment for          no regrets if this is outweighed by more improvements
another five future scenarios, within the 2021 Plan. It is   in impacts for other criteria.
therefore important that further evidence is gathered to

                                                                                                                                  4. Transport
guide final decision-making and implementation.

                                                                                                                                  5. Energy
                                                                                                                                  6. Water
                                                                                                                              7. Telecommunications
                                                                                                                                     and digital
                                                                                                                              infrastructure
                                                                                                                                 8. Social
                                                                                                                                  9. Waste
                                                                                                                                  Icon glossary
                                                                                                                                  References

                                                                                                                        18
Introduction
2021 Australian Infrastructure Plan                                                          2021 Reform Priority List

III. Reform recommendations

                                                                                                                             Results
                                                                                                                             1. Place
Table 8: L
          ist of all recommendations

 Rec     Theme                                               Chapter                                          Page

                                                                                                                             2. Sustainability
                                                             Place-based outcomes for
 1.1     Rethinking our Fast-growing Cities                                                                      36
                                                             communities

                                                             Place-based outcomes for
 1.2     Strengthening Smaller Cities and Regional Centres                                                        37
                                                             communities

                                                                                                                             3. Industry
         Lifting access in Small Towns, Rural Communities    Place-based outcomes for
 1.3                                                                                                             38
         and Remote Areas                                    communities

         Unlocking opportunity in Northern Australia         Place-based outcomes for

                                                                                                                             4. Transport
 1.4                                                                                                             39
         and Developing Regions                              communities

 2.1     Infrastructure planning for an uncertain future     Sustainability and resilience                       40

                                                                                                                             5. Energy
 2.2     Technology-led sustainability                       Sustainability and resilience                        41

         Transparency and collaboration build trust
 2.3                                                         Sustainability and resilience                        42
         in decisions

                                                                                                                             6. Water
                                                             Industry productivity and
 3.1     Improving planning, portfolios and pipelines                                                             43
                                                             innovation

                                                                                                                         7. Telecommunications
                                                             Industry productivity and
 3.2a    Enhancing project outcomes                                                                               44
                                                             innovation

                                                                                                                                and digital
                                                             Industry productivity and
 3.2b    Enhancing project outcomes                                                                              45
                                                             innovation
                                                                                                                         infrastructure

                                                             Industry productivity and
 3.3     Digital by default                                                                                      46
                                                                                                                            8. Social

                                                             innovation

                                                             Industry productivity and
 3.4     Next generation infrastructure investment                                                                47
                                                             innovation
                                                                                                                             9. Waste

 4.1     Getting the most out of our transport investments   Transport                                           48

 4.2     Connecting regional and remote Australia            Transport                                           49
                                                                                                                             Icon glossary

 4.3     Mobility choice made possible                       Transport                                           50
                                                                                                                             References

                                                                                                                   19
Introduction
2021 Australian Infrastructure Plan                                                                                            2021 Reform Priority List

                                                                                                                                                                 Results
 Rec      Theme                                                        Chapter                                                                  Page

 4.4      A fairer price for every journey                             Transport                                                                       51

                                                                                                                                                                 1. Place
 5.1      Putting customers first                                      Energy                                                                          52

 5.2      A smart, affordable, reliable grid                           Energy                                                                          53

                                                                                                                                                                 2. Sustainability
 5.3      Powering a cheaper, cleaner future                           Energy                                                                          54

 6.1      Securing our water future                                    Water                                                                           55

                                                                                                                                                                 3. Industry
 6.2      Valuing water to create liveable communities                 Water                                                                           56

          Improving the resilience of Australia’s

                                                                                                                                                                 4. Transport
 7.1                                                                   Telecommunications and digital                                                  57
          telecommunications

          Putting customers at the heart of digital
 7.2                                                                   Telecommunications and digital                                                  58
          infrastructure

                                                                                                                                                                 5. Energy
 7.3      Enabling Australia’s digital future                          Telecommunications and digital                                                  59

          Transforming social infrastructure to enhance
 8.1                                                                   Social infrastructure                                                           60
          quality of life

                                                                                                                                                                 6. Water
 8.2      Partnerships to build communities                            Social infrastructure                                                           61

                                                                                                                                                             7. Telecommunications
 8.3      Social infrastructure is economic infrastructure too         Social infrastructure                                                           62

                                                                                                                                                                    and digital
 9.1      Valuing resources to enable a circular economy               Waste                                                                           63

                                                                                                                                                             infrastructure

 9.2      Waste data to drive innovation                               Waste                                                                           64
                                                                                                                                                                8. Social

 Community-
 weighted baseline       Policy priorities
                                                                                                                                                                 9. Waste

 Community priorities     Economic benefits         Social benefits       Productive cities    Liveable cities     Connected regions
                                                                                                                                                                 Icon glossary

 Deliverability          Future scenarios

   Low-hanging fruit        Bounce back to      Slow recovery from a        Regionalised       Digital Australia   Destabilised world     No regrets
                            rapid recovery      sustained pandemic            Australia
                                                                                                                                                                 References

                                                                                                                                                        20
Introduction
2021 Australian Infrastructure Plan                                                            2021 Reform Priority List

IV. Results and prioritisation

                                                                                                                               Results
                                                                                                                               1. Place
What the results mean
Infrastructure Australia has assessed the impact of each   We expect the anticipated impact of each reform to vary
recommendation using multi‑criteria analysis. We have      in response to the changing infrastructure environment,
used the theory of change methodology to ensure the        so the resilience of reforms has been considered.

                                                                                                                               2. Sustainability
recommended reforms are structured to deliver impact.
                                                           We have not attempted to identify the single strongest
The multi-criteria analysis has been applied at            performing reform, but rather reforms aligning with the
the recommendation level, incorporating the                community’s priorities and a series of scenarios that
recommendation alongside its supporting outcomes           warrant further planning.
and activities.
                                                           The results highlight the reform recommendations that

                                                                                                                               3. Industry
The results of the multi-criteria analysis highlight       do well under certain criteria and scenarios. However,
which of the 29 recommendations proposed by the            while these assessments highlight relative performance,
2021 Plan are most impactful under a range of future       every reform included in the 2021 Plan is critical to a
developments and against the infrastructure policy         particular sector or issue.
priorities of the Australian Government.

                                                                                                                               4. Transport
                                                                                                                               5. Energy
                                                                                                                               6. Water
                                                                                                                           7. Telecommunications
                                                                                                                                  and digital
                                                                                                                           infrastructure
                                                                                                                              8. Social
                                                                                                                               9. Waste
                                                                                                                               Icon glossary
                                                                                                                               References

                                                                                                                     21
Introduction
2021 Australian Infrastructure Plan                                                                              2021 Reform Priority List

Reforms that deliver on the community’s priorities

                                                                                                                                                 Results
                        Community priorities
                        Recommendations with the most beneficial impact on community priorities.

                                                                                                                                                 1. Place
In the Australian Government 2021–2022 Budget                         •   Governments should strive to act as a model client

                                                                                                                                                 2. Sustainability
Outlook,21 recent record rates of economic growth are                     providing a clear and consistent long-term direction
expected to moderate but remain higher than global                        on next generation infrastructure investment. This
averages, and COVID-19 vaccines should become                             reform supports the increased alignment of the various
fully available by the end of 2021. Under this outlook,                   levels of Australian Government to ensure increased
the five recommendations that have the strongest                          capability, alignment and collaboration. This will involve
impact against the balance of community priorities                        the identification of a common vision for infrastructure

                                                                                                                                                 3. Industry
share commonalities in meeting the needs of the next                      and the sector that supports it.
generation through infrastructure planning that keeps
                                                                      •   Driven by water-literate communities, Australia must
them in mind (see Table 9).
                                                                          enter a new phase of water efficiency to adapt to
•         The COVID-19 pandemic provides an opportunity                   an unpredictable future and to ensure urban, rural,
          to rethink the role of our Fast-growing Cities, to              environmental and cultural users have secure, long-

                                                                                                                                                 4. Transport
          embed the positive behaviour changes associated                 term water supply. A consistent approach to measuring
          with COVID-19 and to reshape the planning of                    water security risk enables stronger planning to support
          cities for the future. Collaborative governance                 better health and environmental outcomes, with
          aligns investment priorities to improve economic                reduced frequency and intensity of water shortages.
          development and support future employment
                                                                      •   In addition to being critical to the health of people, the
          patterns.

                                                                                                                                                 5. Energy
                                                                          environment and communities, water is a key driver of
•         The infrastructure industry is large and globally it            economic prosperity. It transforms urban environments
          does not have endless capacity. Improved planning,              into desirable places to live, work and visit. All
          portfolios and pipelines enable Australia to remain             Australians have a right to high-quality water for
          an attractive market for investment. Investing in               healthy communities. This is essential to strengthen
          governance will improve affordability, unlock significant       outcomes for health, wellbeing, economic prosperity

                                                                                                                                                 6. Water
          economic productivity gains and lift industry capacity.         and sustainable development.

Table 9: Community priority reforms

                                                                                                                                             7. Telecommunications
                                                                                                                                                    and digital
    Rec.           Theme                                                  Chapter                                                 Page

    1.1            Rethinking our Fast-growing Cities                     Place-based outcomes for communities                       36

    3.1            Improving planning, portfolios and pipelines           Industry productivity and innovation                       43      infrastructure

    3.4            Next generation infrastructure investment              Industry productivity and innovation                        47
                                                                                                                                                8. Social

    6.1            Securing our water future                              Water                                                      55

    6.2            Valuing water to create liveable communities           Water                                                      56
                                                                                                                                                 9. Waste
                                                                                                                                                 Icon glossary
                                                                                                                                                 References

                                                                                                                                       22
Introduction
2021 Australian Infrastructure Plan                                                                     2021 Reform Priority List

Reforms aligning with the Australian Government’s infrastructure priorities

                                                                                                                                        Results
Infrastructure Australia has assessed reforms against        •   has an important role in shaping cities that are
the Australian Government’s three objectives                     productive and liveable
for infrastructure, as defined in our Statement of
                                                             •   provides connectivity to regional and remote parts of
Expectations.22 Namely, that infrastructure:
                                                                 Australia.

                                                                                                                                        1. Place
•     provides or underpins services that deliver economic
                                                             We translated these objectives into five policy priorities then
      and social benefits to Australians
                                                             assessed the impact of recommendations against them.

                                                                                                                                        2. Sustainability
                    Economic benefits
                    Recommendations most likely to provide economic benefits to Australians, including
                    increased national employment or GDP.

                                                                                                                                        3. Industry
Under the conditions detailed in the Australian              and innovation in the infrastructure sector recognises
Government 2021–2022 Budget Outlook, reforms the             the strong focus on the sector to supporting recovery
reforms most likely to strongly increase Australia’s         and continuing to operate during potential COVID-19
economic performance are reforms to the functioning of       outbreaks. Access to water and clean, affordable and
the infrastructure sector, as well as the energy and water   reliable energy is also critical to Australian businesses

                                                                                                                                        4. Transport
sectors (see Table 10). The strong focus on productivity     and households.

Table 10: Reforms to deliver economic benefits

    Rec.      Theme                                              Chapter                                                 Page

                                                                                                                                        5. Energy
    3.2b      Enhancing project outcomes                         Industry productivity and innovation                       45

    3.3       Digital by default                                 Industry productivity and innovation                       46

    3.4       Next generation infrastructure investment          Industry productivity and innovation                        47

                                                                                                                                        6. Water
    5.3       Powering a cheaper, cleaner future                 Energy                                                     54

    6.1       Securing our water future                          Water                                                      55

                                                                                                                                    7. Telecommunications
                                                                                                                                           and digital
                                                                                                                                    infrastructure
                                                                                                                                       8. Social
                                                                                                                                        9. Waste
                                                                                                                                        Icon glossary
                                                                                                                                        References

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Introduction
2021 Australian Infrastructure Plan                                                                               2021 Reform Priority List

                    Social benefits

                                                                                                                                                  Results
                    Recommendations most likely to increase quality of life for Australians, including
                    improved access for disadvantaged groups, health outcomes, affordability, and
                    opportunities for education and employment.

                                                                                                                                                  1. Place
Reforms to support the quality of life of Australians are                seen as central. So too, enhancements to infrastructure
fundamental to the 2021 Plan. Reforms in many sectors                    resilience and supporting growth in Northern Australia
are impactful against this vision, however hold a common                 and Developing Regions are priorities. This assessment
thread of supporting community choice and flexibility                    assumes economic conditions consistent with those

                                                                                                                                                  2. Sustainability
in access to infrastructure (see Table 11). Enhanced                     detailed in the Australian Government 2021–2022
customer-centricity, both business and household, in                     Budget Outlook.
telecommunications and digital, water and transport are

Table 11: R
           eforms to deliver social benefits

                                                                                                                                                  3. Industry
 Rec.         Theme                                                        Chapter                                                 Page

              Unlocking opportunity in Northern Australia and
 1.4                                                                       Place-based outcomes for communities                       39
              Developing Regions

                                                                                                                                                  4. Transport
 2.1          Infrastructure planning for an uncertain future              Sustainability and resilience                              40

 4.3          Mobility choice made possible                                Transport                                                  50

 6.2          Valuing water to create liveable communities                 Water                                                      56

                                                                                                                                                  5. Energy
 7.2          Putting customers at the heart of digital infrastructure     Telecommunications and digital                             58

                                                                                                                                                  6. Water
                                                                                                                                              7. Telecommunications
                                                                                                                                                     and digital
                                                                                                                                              infrastructure
                                                                                                                                                 8. Social
                                                                                                                                                  9. Waste
                                                                                                                                                  Icon glossary
                                                                                                                                                  References

                                                                                                                                        24
Introduction
2021 Australian Infrastructure Plan                                                                   2021 Reform Priority List

                    Productive cities

                                                                                                                                      Results
                    Recommendations most likely to make cities more productive, through efficiency
                    benefits, higher-quality workforce, or greater services on demand.
                    Only recommendations relevant to Fast-growing Cities or Smaller Cities and Regional
                    Centres are considered.

                                                                                                                                      1. Place
The Australian Government has prioritised supporting         should be given to managing the pipeline of large
the productivity of Australia’s cities. The reforms to       infrastructure projects, electricity transmission rule

                                                                                                                                      2. Sustainability
support the productivity of cities, is closely aligned to    changes and supporting the electricity distribution grid
enhancing the economic performance of the country            to cope with rapid electricity system decentralisation if
as a whole (see Table 12). However, added emphasis           city productivity is to be prioritised.

Table 12: Productive cities reforms

                                                                                                                                      3. Industry
 Rec.         Theme                                            Chapter                                                 Page

 3.1          Improving planning, portfolios and pipelines     Industry productivity and innovation                       43

 3.3          Digital by default                               Industry productivity and innovation                       46

                                                                                                                                      4. Transport
 3.4          Next generation infrastructure investment        Industry productivity and innovation                        47

 5.2          A smart, affordable, reliable grid               Energy                                                     53

 6.1          Securing our water future                        Water                                                      55

                                                                                                                                      5. Energy
                                                                                                                                      6. Water
                                                                                                                                  7. Telecommunications
                                                                                                                                         and digital
                                                                                                                                  infrastructure
                                                                                                                                     8. Social
                                                                                                                                      9. Waste
                                                                                                                                      Icon glossary
                                                                                                                                      References

                                                                                                                            25
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