The City of Melbourne has redirected funding away from its $316 million Greenline project in the 2025-26 draft budget, handed down on Tuesday night, after the council failed to secure state and Commonwealth funding for later stages. The ABC reported on 11 May that the future of the project was in doubt.
The Budget
The draft budget allocates $18 million to complete the first stage at Birrarung Marr, including the wetlands outside Melbourne’s aquarium. The ABC reported the $18 million figure a day before the budget was handed down. The council’s budget papers state the $18 million package includes $10.25 million from the federal government and $7.75 million from the council.
The first stage covers about 450 metres of boardwalks, promenades and open space along the north bank of the Yarra River, according to the council’s budget papers. The ABC reported the $316 million project was announced in 2022 by then Lord Mayor Sally Capp and drew comparison to New York’s High Line. The ABC reported last year’s budget allocated just $27 million over four years.
Why It Stalled
Lord Mayor Nicholas Reece said the project would continue, and that the council had redirected money it had set aside for matching other governments’ contributions. No state or Commonwealth funding has been secured for the later stages of the project. Cr Reece spoke to the ABC before the draft budget was handed down.
“I’m a greater supporter of the Greenline project and it is going to continue,” Cr Reece told the ABC. “We always said it was a big project and we couldn’t deliver it on our own. We have reallocated some funds in our budget which had been earmarked to be matching funding with other governments, so we can direct those funds to other priority needs across the city.”
The council says its business case showed the project would create thousands of jobs, attract tourists and be worth millions to the local economy. A council spokesperson said it would continue to “advocate strongly” for future stages.
The Reaction
Scott Veenker, chief executive of the Committee for Melbourne, said the money is better spent elsewhere. “We know we’ve got a lot of fantastic events and facilities already within the city that attracts a lot of people,” he said. “Was this one of the real pressing or burning platform initiatives that needed to be delivered? We just didn’t believe that was the case at this point in time.” He said members wanted “a city that’s safe and has really good amenity and is accessible”.
Minister for Development Victoria and Precincts Harriet Shing said: “Any matters around the Greenline are matters that are best directed to the City of Melbourne.” The ABC reported the project was not a priority for the state government.
What Next
Cr Reece said the reallocation would not stop the project. The council says work on the first stage is under way, and that future stages depend on securing more funding from other levels of government and commercial stakeholders.
The money redirected in the draft budget will go to a new North Melbourne community hub and the Southbank library. The draft budget is now open for consultation, and no decision has been taken on the later stages. The $18 million for the first stage is unaffected.
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Sources: ABC News, https://www.abc.net.au/news/2025-05-11/melbourne-city-council-greenline-yarra-river-future-in-doubt/105279472; City of Melbourne, Budget 2025-26 (consultation page, adopted budget), accessed 1 October 2026, https://participate.melbourne.vic.gov.au/budget-2025-26
Photo: -wuppertaler, CC BY 4.0, via Wikimedia Commons.
Illustrative: the Birrarung Marr area on the Yarra River in Melbourne, photographed in February 2023. The photograph is not from the events described in the article.