The federal government has committed $137.5 million to upgrading the Williamtown to Bobs Farm stretch of Nelson Bay Road in a budget which will leave the Hunter hoping it can share in new multibillion-dollar clean energy, housing and infrastructure programs.
The budget papers handed down by Treasurer Jim Chalmers on Tuesday night did not specify when the Nelson Bay Road funding would flow, but the allocation will come as welcome news to commuters and holiday-makers nine years after former NSW premier Mike Baird promised the road would be upgraded to dual carriageway.
It will also brighten the re-election prospects of Paterson MP Meryl Swanson, who faces a potentially harmful electorate boundary redraw before the next federal vote.
The Williamtown to Bobs Farm project, which is likely to require a NSW government funding contribution, will bypass Salt Ash through farm land.
The state government said last year that the 11-kilometre road duplication was on hold pending a federal government review of infrastructure projects.
The budget was otherwise light on for new Hunter infrastructure but did mention existing funding for the M1 Motorway extension, planning for high-speed rail from Newcastle to Sydney, and Newcastle Airport's new international-ready terminal.
The government's signature Future Made in Australia program includes a goal of investing $22.7 billion over 10 years to establish the nation as a clean energy and critical minerals "superpower" by attracting international investment, subsidising industry and backing research.
Committee for the Hunter chief executive said the program was an "exciting vision, and we can see the Hunter's place in it".
The Hunter has some of the nation's largest energy users here producing critical materials for the domestic and global economy," she said.
"The region is home to the most innovative clean-tech manufacturers in Australia, striking contracts with international partners, bringing new capabilities here."
"The biggest priority for our global-focused industry is to secure additional clean energy supply and shared infrastructure at the scale and speed required, and that's above replacement of current generation capacity."
The program could benefit the Hunter's proposed green hydrogen industry, which stands to gain from a new $2-a-kilogram tax incentive for renewable hydrogen produced between 2027 and 2040 for up to 10 years per project.
The measure is expected to cost the budget $6.7 billion over the medium term.
The government has previously committed $100 million to Port of Newcastle's proposed hydrogen manufacturing hub on Kooragang Island.
Mr Chalmers said the government would spend an extra $1.3 billion over the next decade on its Hydrogen Headstart program for "early movers" in the fledgling technology.
Two Hunter projects proposed by KEPCO Australia and Origin Energy are among six shortlisted applicants for round one of the Hydrogen Headstart scheme.
Origin received $70 million in federal money last year and $45 million in state funding for a proposed hydrogen plant on Kooragang Island.
The clean energy spending includes $3.2 billion over the next decade to support commercialisation of technologies "critical to net zero", including a new $1.7 billion innovation fund for "priority sectors" such as batteries and "green" metals produced with renewable power.
The Hunter is well placed to produce green aluminium and steel.
The Clean Energy Council said the budget was "biggest clean energy budget in Australia's history" and would unlock tens of thousands of jobs in the sector.
"This is a budget that puts renewable energy at the centre of our economic future," CEC chief executive Kane Thornton said.
"The government and the Australian people should be proud of this budget.
"The support for green hydrogen is another massive step for our nascent green hydrogen industry."
Climate Council chief executive Amanda McKenzie noted that "gas and coal are not part of the budget's vision for a Future Made in Australia, underlining that our next era of prosperity can be built on cleaner foundations".
"This is an essential signal across our entire economy," she said.
The Committee for the Hunter and Business Hunter had hoped for government commitments on training and educating the workforce that will drive a future Hunter renewables sector, but the budget committed $10 million in 2025-26 to establish a National Hydrogen Technology Skills Training Centre in partnership with the Victorian government.
More broadly, the budget commits $91 million over five years to develop a clean energy workforce, including by "addressing vocational education and training sector trainer workforce shortages".
It also allocates $55.6 million over four years to establish the Building Women's Careers program to fund partnerships between training providers, community organisations, employers and unions to improve women's access to male-dominated industries of national priority, including clean energy.
The budget provides $399.1 million over five years from 2023-24 in additional funding for regional economies such as the Hunter shifting away from a reliance on coal exports and power generation.
The government also says it will spend an additional $616.8 million from 2028-29 to 2034-35 and $93.4 million per year ongoing in additional resourcing for the Net Zero Economy Authority, the Department of Employment and Workplace Relations and the Fair Work Commission to "promote orderly and positive economic transformation".
The allocations include $209.3 million over four years from 2024-25, and $53.3 million per year ongoing, to expand the NZEA to coordinate policy, broker investments and support workers affected by the net zero transition.
The Hunter also will hope some of the government's $6.2 billion new investment in housing will trickle down to the region.
The package includes an additional $1.9 billion in loans to help build 40,000 social and affordable homes.
Mr Chalmers told Parliament that the federal-state National Housing Accord target of 1.2 million new houses in five years was "ambitious but achievable".
The High Speed Rail Authority is preparing a business case on the Newcastle-Sydney line this year as part of a previous $500 million commitment to planning for the project.
This budget allocates $51.4 million to the HSRA next financial year and $3.6 million in 2025-26 but nothing in 2026-27 and beyond.
The budget commits $112 million to the 15-kilometre M1 extension over the next 11 years, though the $2.1 billion project has started and is due to be complete by 2028.
"I am proud to be delivering on my commitment to the M1 upgrades through further funding of $112 million, and a further $137.5 million for the long-overdue duplication of Nelson Bay Road, helping locals and tourists with better access while moving in a safe way," Ms Swanson said.
The budget papers do not mention the planned Singleton and Muswellbrook bypasses, the latter of which was paused after a review of projects in the national infrastructure pipeline last year.
Another long-overdue transport project, the Lower Hunter freight rail bypass, also does not rate a mention.
Defence, another key industry for the Hunter, will receive an additional $50.3 billion over 10 years as the government implements the new direction in its 2024 National Defence Strategy and Integrated Investment Program.
Shortland MP Pat Conroy said the budget had "delivered for everyone in the Hunter", including tax cuts worth an average $1551 a year from July 1.
"It's the right and responsible thing to do, and I know this help will make a real difference for local families and businesses in our community who are under the pump," he said.
