Federal budget to include new funding for stage 2B of light rail

Finance Minister Katy Gallagher will announce the funding - earmarked for planning of the next stage of works to extend the current light rail line from Commonwealth Park to Woden - with Infrastructure Minister Catherine King on Tuesday.

"Light rail has been a transformative project for the ACT and soon Canberrans on the southside will be able to reap its benefits," Senator Gallagher said.

"The Albanese government is working hand in hand with the Barr government to deliver infrastructure for Canberra."

The ACT government has not put a price tag on stage 2B, which is expected to be built between 2028 and 2033, although the 1.7-kilometre stage 2A has a contract for $577 million. The Commonwealth is paying for half of stage 2A, which is expected to be completed by January 2028.

The ACT government hopes the stage 2B light rail plan funding will be the first in a string of infrastructure projects to receive a boost in the budget.

Asked to comment on a parliamentary inquiry recommendation that the Albanese government upgrade the Australian Institute of Sport, Senator Gallagher said, "We are certainly working pretty closely with the ACT government on their priorities."

"The ACT government's lobbying pretty strongly on a whole range of fronts, not just [the] stadium but transport, national facilities," she told reporters at a press conference in Canberra on Monday.

Senator Gallagher said the government's plans for revitalising the run-down AIS were "coming to conclusion".

The government announced in February that the "national home of sport" would stay in Bruce, rejecting a $1 billion plan to move the high-performance base to south-east Queensland.

Dr Chalmers said ACT voters had "a very determined and very passionate advocate for the people here in the capital" in Senator Gallagher as he put the finishing touches on the budget he will hand down in seven days.

Chief Minister Andrew Barr has been lobbying the Albanese government for a 50/50 funding split on the development of a new convention precinct in Civic, which a parliamentary inquiry into the capital has backed.

The new entertainment and convention precinct in Canberra's city centre would combine multi-use venues for business and live entertainment use.

Mr Barr has also written to Prime Minister Anthony Albanese requesting a 50/50 funding split on the progression of the sports, health and education precinct (including a new stadium) in Bruce.

The federal budget will also establish a new $100 million national Active Transport Fund to upgrade and deliver new bicycle and walking paths.

The scheme, which the ACT will be eligible to apply to, aims to support zero-emissions travel, provide a safer environment for cyclists and pedestrians and promote active and liveable communities.

Infrastructure and Transport Minister Catherine King said the announced budget measures would "drive productivity, boost economic growth, create job opportunities and help to tackle cost of living pressures".

"We want to ensure that Australia is well placed to compete in the new, net zero economy, to revitalise regions and support communities in cities, suburbs and regions," she said.

ACT Transport Minister Chris Steel welcomed "this significant investment from the Commonwealth and their support for the design and approvals for the southside extension of Canberra's mass-transit light rail line".

"Canberra's population is expected to increase from around 460,000 today, to more than 780,000 people by 2060," Mr Steel said.

"Both the Albanese Labor government and the Barr government are investing now to deliver an integrated public transport network fit for our growing city."