The Albanese Government will provide $50 million for priority upgrades to rail infrastructure between Sydney and Canberra as part of the 2026-27 Federal Budget.

This funding will be matched by $25 million from the NSW Government and $25 million from the ACT Government, securing $100 million to undertake this project.

Upgrades are expected to commence this year and be ongoing for up to five years, and will likely include:

  • Investigations into new express services

  • New boom gates and lights at level crossings to improve safety and increase train speeds

  • Improvements to track alignments and turnouts

  • Station and stabling improvements

Planning and design for the next phase of works, which could include passing loops, track recanting and straightening.

The 321-kilometre corridor includes the Sydney Trains-operated line between Sydney Central station and Macarthur, the ARTC-operated Southern Line through the Southern Highlands to Goulburn, and the UGL Regional Linx-operated Country Regional Network (CRN) branch line into Canberra.

The Government will work with network operators and transport departments to determine the most cost-effective interventions, with an immediate focus of improvements to the line between Goulburn and Canberra, to complement trackwork already underway on the ARTC Southern Highlands line between Goulburn and Sydney.

This investment will also fund a business case, to map out network upgrades and timetable improvements, to help to improve efficiency and travel times for passenger services over the coming years.

The funding will increase the corridor’s capacity, reliability and efficiency, complementing the NSW Government’s investment in new Regional Rail Fleet trains, which will start serving the line once testing and commissioning is complete.

This investment builds on the Albanese Government’s almost $2.8 billion investment to improve the resilience of the ARTC’s freight rail network and its commitment to deliver High Speed Rail between Newcastle and Sydney.

Quotes attributable to Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King:

“The NSW and ACT Governments have worked together to identify ways we can quickly implement timetable improvements and quick infrastructure fixes to speed up travel times between Sydney and Canberra. Now we’re ready to work with them to deliver these improvements.

“More than 3,000 people travel between Sydney and Canberra by air or coach every day, with tens of thousands more driving down the Federal Highway. So many of these regular commuters have consistently called for a more frequent and faster rail alternative.

“I am pleased to be working with my State and Territory colleagues to get shovel-ready works underway while we also plan for long term improvements that will make a real difference.”

Quotes attributable to Minister for Finance and Senator for the ACT Katy Gallagher:

“Improving the Sydney-Canberra rail line will make train travel between the two cities faster and a more attractive option for travellers.

“This is an example of the Federal Government working with the ACT and NSW Governments to invest in our region and in the national interest.”

Quotes attributable to Chief Minister Andrew Barr:

“Canberrans deserve a modern rail link between the ACT and Sydney that’s faster, reliable and comfortable.

“It’s something I’ve advocated for for the best part of a decade. It’s a promise we took to the ACT election. And finally, today we have a funding commitment that will make faster rail a reality and that recognises the importance of this project for our region.

“This investment will deliver practical improvements to rail travel between the two capitals while supporting the growth of our region. We will continue working closely with the NSW Government and the Commonwealth to deliver these improvements.”

Quotes attributable to NSW Minister for Regional Transport Jenny Aitchison:

““This investment by the Federal, NSW and ACT Labor Governments demonstrates a real and shared commitment to improving regional travel options.

“Working collaboratively with rail operators and NSW TrainLink, this investment will improve travel times between Canberra and Sydney, as well as communities like Queanbeyan, Goulburn and also those in the Southern Highlands line.

“In addition to the significant investment by the NSW Government in the new Regional Rail Fleet, currently in testing, passengers can soon look forward to having have smoother, more comfortable and more efficient journeys between our two capital cities, and for regional communities between Sydney and Melbourne.”