Delivering the Suburban Rail Loop
Overview
Why this is important
The Suburban Rail Loop (SRL) is a planned 90-kilometre orbital rail loop that will link Melbourne's eastern and western suburbs via Melbourne Airport. The Suburban Rail Loop Authority (SRLA) is responsible for planning and delivering the SRL, which in 2022 the Parliamentary Budget Office estimated will cost $125 billion.
In addition to being a significant infrastructure project, the SRL is intended to transform land use across suburban Melbourne with a particular focus on delivering housing and employment outcomes in the precincts surrounding SRL stations. The SRL business case estimates that the precinct development will deliver an additional 47,500 households and 165,000 jobs in SRL East and SRL North precincts.
Our 2022 Quality of Major Transport Infrastructure Project Business Cases audit found that planning and approval processes for the SRL had not followed usual government protocol, with the costs associated with developing these precincts not having been fully explored.
The process for planning SRL precincts commenced in mid-2023 with the release of the SRL Precincts: Discussion Paper, followed by the release of the Draft Precinct Vision in November 2023. SRLA released the draft structure plans, planning scheme amendments and supporting documents for the SRL East precincts in March 2025 for public consultation.
In the context of realising the wider economic benefits anticipated by the SRL business case, it is vital that the precinct planning process for SRL precincts is undertaken in a manner that can achieve the projected population and employment estimates. Failure to do so will reduce the benefits associated with SRL and add to the costs borne by the community.
Construction on the SRL East (from Cheltenham to Box Hill) began in June 2022 with planned completion in 2035. State budget papers indicate that this decade-long project is expected to cost between $30 billion and $34.5 billion.
What we plan
to examine
We plan to examine whether SRL East precincts planning and project delivery is proceeding as planned to enable realising the benefits identified in the SRL business case.
Who we plan
to examine
Suburban Rail Loop Authority, Department of Transport and Planning, Department of Treasury and Finance and selected local councils.