Queensland is set for a multibillion-dollar road and rail building blitz over the next four years as the government funds shovel-ready projects and puts money down for states to "use or lose".

Placing infrastructure projects at the heart of the Government's plans to create jobs, Treasurer Josh Frydenberg said the building pipeline would "set Australia up for the future".

"We know that building more infrastructure now means more jobs now," he said.

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It includes $1.3bn in projects revealed on Monday by The Courier-Mail and a new national road safety program as well as $1bn for local councils to upgrade transport infrastructure.

Since the start of the pandemic the Morrison Government has pledged $2.2bn to new and accelerated projects in Queensland over the next four years.



Of $18bn in total committed to Queensland projects over the next decade, $13bn has been earmarked for spending over the next four years.

Mr Frydenberg has unveiled a $2bn investment in road safety upgrades for "shovel ready projects" provided to states as a "use it or lose it" deal.

"If a state drags its feet, another state will get the money," he said.

"We need works to start, not stall."

The safety program and $1bn for local councils to immediately upgrade local roads, footpaths and street lighting are set to support 10,000 direct and indirect jobs.

More than $320m from the programs will be spent in Queensland, including $126.4m for a regional economic enabling fund and $120.0m for targeted safety works Major Queensland projects funded under the new $1.3bn allocation include building stage one of the long-awaited second M1, which will eventually link Loganholme to Nerang, the Centenary Bridge duplication and $76 for Townsville's Riverview Drive stage two.

An additional $10m is being brought forward for further planning for the Port of Brisbane and $4.2m for the Brisbane to Gold Coast faster rail business case.

Other projects include $23m towards the new Rockhampton Stadium, $3m over two years to accelerate planning of water infrastructure and agricultural opportunities in North Queensland.

Nearly $11m in funding for the Hinkler Regional Deal will support projects at the Port of Bundaberg, including the construction of new common use infrastructure

And $270m has been set aside over three years for projects under the Townsville City Deal, including the a channel capacity upgrade in the port.

And the government will push to progress the CopperString 2.0 project, which would connect the North West Minerals Province near Mount Isa to the National Electricity Market near Townsville, to a final investment decision, potentially creating up to 400 jobs.

The North Bowen and Galilee basins were included in $28.3m gas-fired recovery plan to unlock and accelerate development of "vast" gas reserves.

The Morrison Government's signature economic response to the COVID crisis, JobKeeper has pumped $10.7bn into the Queensland economy since May, according to the Budget.

And a further $5.4bn in cash flow boosts have gone to Queensland residents up to mid-September.

Despite the roll back of JobKeeper and economic supports, a further $2.3bn is set to flow to Queenslanders across the forward estimates.

But the slumping economy has smashed the national GST intake, meaning Queensland will only receive $12.7bn in 2020-21, down from the $14.213bn projected in 2019-20 before the pandemic hit.

The national GST take slumped as consumers stopped buying discretionary items such as clothing and footwear in favour of categories such as fresh food, which is not subject to GST.

That GST pattern is expected to continue through 2020-21 before rebounding the following year.

Health and hospital funding was set to jump by $609m in Queensland in 2020-21, taking total funding to $5.6bn.

Funding for education and skills in Queensland is set to reach $5.4bn in 2020-21 including $4.8bn to quality schools.

Resources were also set to continue propping up the Queensland economy powered by an expected 0.5 per cent growth in national mining exports this year followed by a 4 per cent jump in 2021-22.

Robust iron ore demand from China will charge short-term export but "gradual recovery" in other key export partners is predicted as "COVID-19 restrictions ease and industrial production recovers".

Coal export volumes were expected to be subdued due to lower global demand however price assumptions for metallurgical and thermal coal remained steady at US$108 per ton and US$51 per ton respectively.

"Some market and industry participants have highlighted that coal prices may increase as the global economy recovers," according to Budget papers.

New Projects: $1.122bn

Beams Road Open Level Crossing: $50m

Bruce Highway Upgrade Strategy: $20m

Centenary Bridge Upgrade: $112m

Coomera Connector Stage 1 (Coomera to Nerang): $750m

Currumbin Creek Road-Bienvenue Drive Intersection Upgrade: $2m

M1 Pacific Motorway Upgrade Program - Exit 45: $10m

Mt Lindesay Highway Upgrade, Johanna Street to South Street: $42.4m

Riverway Drive Stage 2 (Allambie Lane - Dunlop Street): $76m

Cooktown to Weipa Corridor Upgrade - Cape York Community Access Roads: $38m

Cairns to Northern Territory Border Upgrade - Gulf Development Road: $17.2m

Townsville to Roma Corridor Upgrade - Dawson Highway (Banana-Rolleston): $4.8m

Additional Funding for Existing Projects: $188.8m

Bruce Highway, Babinda Intersection Upgrade: $2.6m

Bruce Highway, Cairns Southern Access Corridor Stage 4: $15.7m

Bruce Highway, Caloundra Road to Sunshine Motorway: $95.2m

Bruce Highway, Rockhampton Northern Access Upgrade: $29.6m

Bruce Highway, Burdekin Bridge Upgrade: $38m

Cunningham Highway, Eight Mile Intersection Upgrade: $2.4m

Second M1 (Coomera Connector) Business Case: $5.3m

New Commitments $1.311bn

Investment Roads: $1.052 billion

Roads of Strategic Importance: $60 million

Additional for existing projects: $188.8 million

Originally published as What Federal Budget delivers for Queensland

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