Australia’s transport infrastructure construction sector is entering a period of contraction after four years of strong growth. From 2020/21 to 2023/24, the sector expanded by 42%, peaking at $50.3 billion (in constant 2022/23 prices). However, activity declined by 2.7% in the year to March 2025, with a further 2.9% drop forecast for 2025/26. This downturn is being driven by project completions, tighter budgets, and ongoing supply-side pressures. A recovery is projected to begin in 2026/27, with construction activity expected to rebound to around $50 billion in 2027/28 (in constant 2022/23 prices).

This report provides a concise explanation of the nature and magnitude of the impacts in the various transport construction segments – road, rail, bridges and harbours. It also provides a fully revised set of forecasts, and corresponding project list, for all segments of transport infrastructure construction looking ahead ten years.