Scott Morrison announces additional $1.5 billion towards 'shovel-ready' projects

The prime minister has outlined some of the new projects the government will help fund to revive the economy as the COVID-19 pandemic eases.

Treasurer Josh Frydenberg and Prime Minister Scott Morrison during Question Time in the House of Representatives at Parliament House. Source: AAP

Prime Minister Scott Morrison has unveiled some of the first infrastructure projects he says will help revive the post-COVID economy, while also flagging more action on deregulation.

"I am committing a further $1.5 billion to immediately start work on small priority projects identified by the states and territories," he told the CEDA State of the Nation summit on Monday.

"As part of this package, $1 billion will be allocated to priority projects which are shovel-ready, with $500 million reserved specifically to target road safety works."

The prime minister explained over $100 billion of economic activity has been lost in Australia this year.

Mr Morrison said joint assessment teams would work on accelerating the projects worth more than $72 billion in public and private investment, and supporting more than 66,000 direct and indirect jobs.

The priority list of projects includes the inland rail project from Melbourne to Brisbane; the Marinus undersea electricity link between Tasmania and Victoria; the Olympic Dam extension in South Australia; emergency town water projects in NSW; and road, rail and iron ore projects in Western Australia.

Further announcements on specific projects will be made soon.

"Our number one priority is getting people back into jobs, And they need to be real, productive jobs. Jobs that produce goods and services that people want," he said.

But he is also calling on the states to cut red tape and unions and businsses to work together to increase productivity.

Mr Morrison said the "deregulation task force" would be brought into the Department of Prime Minister and Cabinet.

"All levels of government, business and the community must rethink how these systems can better contribute to our recovery from the pandemic," Mr Morrison said.

"We need to bring the same common sense and cooperation we showed fighting COVID-19 to unlocking infrastructure investment in the recovery."

Mr Morrison said the nation was "weathering the storm" of the coronavirus pandemic and must now look forward to recovery.

"It is now time to gather the momentum and continue to build the confidence that we need to resume this great adventure."