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Australia is a step closer to having its own high-speed rail network, after the Turnbull government hinted at a new funding approach for a "nation building" projects.
On Monday, Malcolm Turnbull gave his strongest indication yet that Australia would follow other leading nations such as France, Japan and China is developing a high-speed rail, something previously thought of as not worth the money for the nation's small population.
Currently, Australia is the only continent not to have a high-speed rail network, but the government has put forward a plan which would justify the project.
News Corp reported on Monday that the rail would likely be built in sections, with priority given to areas which require a "pressure release valve" for major cities.
The venture would be funded through the process known as "value capture", which leverages the increase in the value of nearby land as a result of the vital infrastructure.
"With this type of rail infrastructure, it transforms the value of real estate," Turnbull said on Monday. "It transforms the amenity of cities and it is important to do your planning and analysis carefully so that you maximize the contribution that you can secure from that."
It would be built by a private consortium, to which the government would offer holdings in nearby land, the value of which would be expected to skyrocket thanks to the high-speed rail.
The government told News Corp it would minimize the cost to taxpayers while also getting the project, which has been considered for up to 30 years, off the ground.
A rail line to Sydney's second airport at Badgerys Creek is the Number 1 priority according to the Turnbull government, while a link from Melbourne to regional center Shepparton (two and a half hours by regular rail) is also deemed important.
It is believed that the high-speed rail connections would encourage growth in regional centers, as it would decentralize the population from major cities while maintaining a short commute.
Eventually, the government said, it would connect for a high speed rail network spanning from the southern city of Melbourne, through Canberra, Sydney and eventually up to Queensland capital city Brisbane.
Despite the announcement, the opposition has been quick to label the plan as a pipe dream, while Greens MP Adam Bandt said the proposal was purely for the votes, calling it "the train that only runs in election years".
A 2013 report commissioned by the then-Labor government slated the high-speed rail network between Brisbane, Sydney and Melbourne would cost up to 100 billion U.S dollars.
