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Inland Rail’s final stages shelved after shock $45 billion price tag revealed

Independent analysis found the full line would cost more than $45 billion, prompting the government to redirect $1.75 billion to existing freight upgrades.

  • On Wednesday, Transport Minister Catherine King confirmed the federal government will scale back the Inland Rail project, ending the 1600km line at Parkes in central New South Wales after costs tripled to more than $45 billion.
  • Independent analysis by economics consultants ACIL Allen prompted the decision, revealing the project's cost soared from $16.4 billion in 2020 to more than $45 billion, King said.
  • Instead of completing the full route, the government will pour an extra $1.75 billion into the Australian Rail Track Corporation network to upgrade tracks, improve signalling, and extend passing loops.
  • Opposition transport spokeswoman Bridget McKenzie labelled the plan a "road to nowhere," while Member for Parkes Jamie Chaffey called the decision a "direct hit" for regional communities.
  • While the government will retain land for the corridor north of Parkes, officials indicated the 23km section through Moree will only be considered for future upgrades alongside other national freight network components.
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ABC Australia broke the news in Australia on Tuesday, May 5, 2026.
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