Prime Minister Anthony Albanese has opened the door for a joint funding deal for a new stadium in Canberra, saying he will "consider proposals on their merit" after committing $10 million to a Bruce precinct master plan.
The ACT government and Australian Sports Commission will work together to develop a vision for the massive parcel of land, which encompasses the AIS, CIT, the North Canberra Hospital and a potential new stadium near Haydon Drive.
The development of a masterplan for Bruce was a direct recommendation of a review into the future of the AIS, which also suggested the existing stadium should be "closed and demolished" if it can't be divested to the ACT government or a private consortium.
The overarching view is to make better use of underutilised land at the AIS campus, which could be sold to generate revenue and ease the housing pressure in Canberra. And the government's willingness to pursue the Bruce plan, and give the AIS a much-needed $250 million injection, signal Mr Albanese's intent for significant investment in the capital.
"We'll always consider proposals on their merits," Mr Albanese said.
"What we know is we've got the order right [with the AIS first]. This needs to be done in order to set us up for the future ... in many ways this facility has been allowed to decay.
"This facility is a national asset and you can't allow a national asset to just not be kept up to speed. This national asset will be of enormous quality and something we can be proud of.
"That will benefit not just Canberra, but will benefit the entire nation."
A new stadium in Canberra - slated to be built by 2033 - is expected to cost at least $500 million. Mr Barr has asked Mr Albanese to pay 50 per cent of the costs.
The federal government owns the existing Canberra Stadium, which was built in the 1970s and has had minimal upgrades for 24 years.
More than 50 per cent of participants in a Canberra Times survey, which will be published on Saturday, want a new stadium to be built in Civic.
Mr Barr revealed the site of the old Raiders headquarters as the government's new preferred location earlier this year.
Mr Albanese dodged questions about committing to pay 50 per cent of the stadium bill. "I'm surprised any state or territory government only ask for 50 per cent," Mr Albanese said.
"I think you're wrong. What every state and territory government wants is for the Commonwealth government to pay 100 per cent."
A.I.S LAND PACKAGE
Divesting land at the 65-hectare site in Bruce would likely help cover some of the infrastructure costs for the institute - a federal government agency - and the ACT government as both pursue significant projects.
If Mr Barr successfully plans a stadium for the corner of Haydon Drive and Battye St, the land surrounding the existing stadium would be available for development.
Australian Sports Commission chief executive Kieren Perkins said: "It's appropriate to have a conversation about making all of these things work together."
ACT senator and Finance Minister Katy Gallagher said the option to use land for housing would be raised as part of the Bruce masterplan.
"There is a recognition that there's mixed views on this," Ms Gallagher said.
"There's a lot of land here, some of it underutilised. What are the best options, including once we've done the new buildings, what are the other needs of the site and where does a stadium fit in?
"That's why we wanted a say [in the master plan] ... we want to have a stake in that because we have a view on it.
"I drive around and it is a lot of land in a central location. If you were designing the AIS today as opposed to 40 years ago, would you do it differently?
"We have no set view, we haven't banked anything on sale of land. It's really about optimising the site."
CANBERRA GAME-CHANGER
Ms Gallagher hailed the federal government commitment for the AIS as a massive moment for Canberra.
The $250 million will be used to build an indoor multi-purpose dome for all sports, a practice and testing facility and new accommodation for athletes.
Those three elements were earmarked as the most urgent areas that needed addressing at the ageing AIS facilities, which have been underfunded for more than 20 years.
The federal government commissioned a review into the AIS last year, which rejected a $1 billion option to move the campus to Queensland.
"We need a first-class facility that reflects the first-class sports people we have in this country," Mr Albanese said.
The review was made public for the first time on Friday. Canberra and sporting figures, including Mr Barr, federal Canberra MPs Andrew Leigh, Alicia Payne and David Smith, independent ACT senator David Pocock, and former Australian Olympics boss John Coates, campaigned against the move to Queensland.
The review made 12 recommendations to make the AIS a world's-best facility again after years of neglect.
The recommendations included the decision to stay in Canberra, build new athlete accommodation and training facilities, ensure AIS infrastructure funding does not impact on athlete funding, decommission unused assets and create a commercial division at the AIS to promote its services and facilities.
"This place has a lot of meaning for the ACT," said Deputy Chief Minister Yvette Berry.
"It will create jobs in construction, jobs for the people who work here. Importantly, a first-class facility for our elite athletes who are training for the Olympics right now in facilities that unfortunately have been left to rot and decay."
Ms Gallagher added: "I just want to acknowledge what it is to have a Prime Minister who cares about Canberra. It makes a difference to this town to have someone who lives here, who believes in the role of the national capital, and who has spent time as Prime Minister investing in the city."
