Government investment in infrastructure has reached record levels in response to the COVID-19 pandemic. The sector has been stretched to deliver the future project pipeline.
This strong focus on delivery has delayed or limited the reform of existing assets and markets, because the need for change has been masked by a thriving sector.
Transport: One example is transport network pricing reform. The 2016 Plan recommended the Australian Government initiate an inquiry into the potential benefits and impacts of road market reform, with a view to transitioning to a fairer and more efficient user-pays approach.
Energy: Australia's electricity sector has undergone a series of reforms over the past three decades. Public sector monopoly assets have been progressively separated into corporatised generation, retail and network components. Some state assets have been transferred to private ownership.
The 2016 Australian Infrastructure Plan found that reform of the electricity sector in Australia was incomplete and needed to continue.
Water: The 2016 Plan recommended that stronger market characteristics should be developed in the urban water sector to meet significant challenges over coming decades.