We are still waiting on Peter Dutton’s first press conference of the day, but AAP has an update on how Victoria’s state Labor government has reacted to the news he would scrap federal funding for the suburban rail loop (Jacinta Allan’s pet project)

A coalition plan to scrap federal funding for a contentious Victorian rail project in favour of an airport link would devastate thousands of workers, the state’s premier says.

Opposition Leader Peter Dutton has made an election campaign pledge to pump an additional $1.5 billion into Melbourne’s airport rail if the coalition wins government on May 3.

This would shorten travel from the city to half an hour and reduce congestion on the arterial Tullamarine Freeway, the coalition says.

Leader of the Opposition Peter Dutton enters a mine cruiser during a visit to the Cougar Mining Equipment facility in Tomago in the Hunter Valley on day 3 of his 2025 Federal Election Campaign in the seat of Paterson, Monday, March 31, 2025.

The additional $1.5 billion – which would take the Commonwealth share to $6.5 billion, or half of the estimated cost – would be matched by a future Victorian coalition government, Mr Dutton said.

However, the next state election isn’t until November 2026.

The other catch is that the money will come from the axing of federal Labor’s $2.2 billion commitment to the suburban rail loop.

That would likely be the final nail in the coffin of the contentious project, as the debt-laden state struggles to find funding.

The contentious suburban loop is a major 90km orbital rail project running from Melbourne’s southeast to the outer west via the Tullamarine airport, with the first stage due to open in 2035.

Victorian Premier Jacinta Allan said the coalition’s plan amounted to a cut, rather than a redirection of funding.

“It’s April Fools’ Day but Peter Dutton’s cuts are no laughing matter,” she told reporters at state parliament on Tuesday.

“His cuts will cut thousands of jobs, but those job cuts also mean cuts to the pay packets of those workers.”

She deflected questions about whether Victoria would go it alone to fund the Suburban Rail Loop if the federal coalition won government, saying that was a hypothetical prospect.

“The Australian community is voting in the coming weeks to determine the outcome of the next federal election,” Ms Allan said.