13 May 2026
Yesterday, the Australian Government, NSW Government and ACT Government announced a total of $100 million of priority upgrades to rail infrastructure between Sydney and Canberra. The rail upgrades are expected to commence this year and ongoing for up to five years.
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$50 million from the 2026-27 Federal Budget; and matched by
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$25 million from the NSW Government; and
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Matched by $25 million from the ACT Government.
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 Australian Government indicated the funding will likely cover the costs of:
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Funding 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.
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Investigations into new express services
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Station and stabling improvements
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New boom gates and lights at level crossings to improve safety and increase train speeds
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Improvements to track alignments and turnouts
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Planning and design for the next phase of works, which could include passing loops, track recanting and straightening.
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 funding injection will increase the corridor’s passenger/freight 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.
Quote attributable to NSW Minister for Regional Transport Jenny Aitchison:
“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 smoother, more comfortable and more efficient journeys between our two capital cities, and for regional communities between Sydney and Melbourne.”
Quote attributable to Member for Wollondilly, Judy Hannan:
“I welcome the funding announced by the Australian Government in the 2026/2027 Budget and the matched amounts of $25 million to be provided by the NSW and ACT Governments. Whilst the funding sounds enormous, the Sydney to Canberra rail infrastructure is 321 kilometres long and that dollar amount equates to an average spend of about $1 Million per 3km of the rail corridor - on a corridor that has been neglected for decades.”
“The funding needs to be appropriately distributed across the rail corridor and preferably result in more reliable, safer and enhanced passenger priority train services.”
“I urge both levels of government to acknowledge and prioritise upgrades that would restore train commuters’ confidence in the passenger rail services that operate on the ARTC-operated Southern Line. The Southern Highlands Line is the only non-electrified passenger rail service in the Sydney Metropolitan area. My vision is that the Australian and state governments’ investment in rail should increase reliability and frequency of passenger rail services, and in turn increase local and regional public transport trip rates by Wollondilly electorate residents’ and workers to a base level commensurate with other parts of the Sydney Metro and hinterland (Blue Mountains and Central Coast).”