The shape of Australia’s largest infrastructure projects is changing — and that has implications for the country’s broader investment environment.
ANZ Research’s latest Major Projects Report suggests a peak of $A105 billion in major project activity (projects of $A500 million or more) by 2027-28. This is well above the peak of $A80 billion in 2025-26 identified in last year’s report.
In our view, the financial year 2028 will be the first time since 2021 that private sector major project investment outstrips that seen from the public sector.
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Australia’s major project slate includes huge growth in electricity related investment, while transport related and other public-sector activity is slowing down. Demand for hospitals on the public sector side and energy on the private side are among the factors driving activity.
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The recent increase in population growth in Australia is impacting industries differently. The Major Projects Report shows the country’s ageing population is creating more demand for infrastructure in the health sector.
In mining, changing investment reflects growing diversity of resource demand, with increased interest in minerals beyond Australia’s traditional output, including nickel, cobalt and scandium. However, global market conditions for these minerals will be critical in determining whether planned projects proceed.
Adelaide Timbrell is a Senior Economist at ANZ
