But is it enough?
Bicycle NSW is extremely pleased that the Australian Government has made an ongoing commitment to a National Active Transport Fund.
$500 million over 10 years has been allocated in the 2026/27 Budget to support the construction of bicycle and walking paths across the nation.
Why this is a win?
In just the last 2 years, the Australian Government has announced investment of $600 million into making the choice to walk and ride for local trips easier, safer and more convenient.
This is a significant turn-around after the previous 15 years when there were zero dollars allocated to active transport in federal Budgets.
"Although the funding is less than the $100 million a year we requested in our pre-Budget submission, there is still a lot to celebrate," says Bicycle NSW CEO Peter McLean.
“It is a big success in a fiscally-tight budget. There has never been a federal commitment like this. It represents a million dollars of investment every week for the next 10 years.
"This predictable flow of federal funds will deliver game-changing upgrades to the walking and cycling networks in Australian towns and cities.
“It also sends a positive investment signal to local government and reflects the strong community demand for transport options that don’t involve driving.”
Celebrating new active transport infrastructure! Bicycle User Group Illawarra Ramblers crosses the recently completed bridge over President Avenue in Kogarah on its 10 Sydney Bridges ride (Image: Bicycle NSW)
What is the National Active Transport Fund?
In 2024, Minister for Infrastructure and Transport Catherine King announced a National Active Transport Fund of $100 million. It was a hugely successful initiative. The fund was meant to be spent over 4 years, but it was exhausted in the first year due to the strong demand from across Australia.
430 projects with a total value of around $1 billion applied for a share of the fund. 81 projects were approved by the Minister in June 2025. Co-funding by the local or state government applicant was required, so the first National Active Transport Fund will support around $200 million-worth of walking and cycling.
New South Wales projects are listed on the Department of Infrastructure’s website and include substantial stretches of new shared path in Bellingen Shire, Blue Mountains, Brewarrina, Sutherland Shire and Lake Macquarie, as well as $2.9 million towards the construction of Transport for NSW’s Wilson Street West Cycleway in Sydney.
Minister for Infrastructure and Transport Catherine King (right) exploring a new section of shared path on Macarthur Street, Ballarat with City of Ballarat Mayor Cr Tracey Hargreaves (Image: Evie Lamb)
What inspired the Australian Government to invest again in 2026?
Minister King now recognises that councils and state government have billions of dollars’ worth of shovel-ready projects.
At the 2025 ALGA National Roads Congress in Bendigo, the Minister gave a keynote speech. She spoke about the Government’s 10-year, $120 billion infrastructure investment, aligned with Infrastructure Australia’s principles of productivity, liveability and sustainability.
When asked what was planned for active transport, the Minister answered that the $100 million National Active Transport Fund demonstrated strong national demand, with “I think, a billion dollars-worth of applications. I'm acutely conscious that it's really, critically important. We're seeing real benefits from the projects that are being funded through that program.”
She then hinted that more money could be allocated: “We're still considering whether we'd go and do an additional amount there, but that $100 million was something I was pretty proud of. It really was massively oversubscribed, so we're well aware that there is significant demand for that.
“So really that's a matter for our next budget next year, as to whether we do that, and if I can convince colleagues of that as well.”
A co-ordinated Australia-wide advocacy campaign
On hearing this response, peak bodies from across Australia quickly developed a campaign to persuade Minister King to establish an annual $100 million Federal Active Transport Fund for each of the next 4 years.
Bicycle NSW included this as the main ask in our pre-budget submission, and encouraged as many mayors and MPs as possible to write to, email or call the Minister to express their strong support for a major active transport program.
We don't know how many did, but we heard that a lot of correspondence arrived at Minster King's office!
“We believe that the letters, emails and phone calls received by Minister King following our campaign were absolutely instrumental in getting $500 million program over the line,” says Bicycle NSW CEO Peter McLean.
"I want to say a huge thank to the many NSW councils who wrote to the federal government as a result of our advocacy, and the countless community members who echoed the call for a National Active Transport Fund.
"We are also very grateful to our advocacy colleagues at Australia's peak bicycle organisations for their hugely collaborative approach to our joint Budget campaign."
Bicycle NSW CEO Peter McLean spends a major chunk of each working week working with politicians at all three levels of government to influence funding and policy for active transport (Image: Bicycle NSW)
A step in the right direction
After 80 years of designing our towns and cities around cars, every corner of Australia needs significant investment to knit together walking and cycling networks so that they are inviting and accessible for more daily trips.
“Of course, we need much more money to make a dent in the backlog of projects. However, the reinstated National Active Transport Fund has opened up the possibility of a bigger allocation next time,” says Peter McLean. “We in a better position as we are now arguing for more money, not arguing for some money.”
And that next time might be well before 2036!
The Australian government has announced that new allocation of the $500 million will be front loaded to maximise its impact in the first three years. $90.2 million for 2026-27, $75.3 million for 2027-28 and $68.8 million the year after means that around $270 million will be spent by 2029.
“If demand remains high,” says Peter McLean, “I am optimistic that the bicycle groups will be a very good position to request an expansion of the fund for future years.”
How much is actually invested in active transport in Australia?
Although the Australian Government investment in the National Active Transport Fund is underwhelming - particularly when the current Fuel Excise Discount is costing $2.55 billion in lost revenue in just 3 months - it is important to note that there are more pots of money for walking and cycling in Australia.
The Bicycle NSW team has been digging into council, state and federal expenditure and budgets to better understand what is currently spent and what is needed to create a ‘Cycle-friendly NSW’.
Stay tuned for an upcoming blog article exploring this topic in detail!
Have you joined Bicycle NSW yet?
Bicycle NSW has been campaigning for a better environment for bike riding for almost 50 years. It is the only bicycle advocacy group based in NSW with full time staff advocating every day for all riders. Each year we write more than 60 submissions and letters to councils, ministers, government bodies and Transport for NSW. This is more than all the other state peak bodies combined!
But did you know that we are funded only by membership fees and donations?
With the End of Financial Year (EOFY) 2026 approaching, there is a fantastic opportunity to make your support go even further.
Every donation over $2 is fully tax-deductible. Please donate before 30 June 2026! You will ensure that Bicycle NSW can keep up its advocacy work - while reducing your taxable income.