The Albanese government will provide an additional $3.8 billion in federal funding for Melbourne’s Suburban Rail Loop (SRL) East, taking its total contribution to the project to $6 billion as part of the 2026 Federal Budget.
Prime Minister Anthony Albanese said the project would change how people move across the city, arguing it would reduce congestion and improve access to jobs and services outside the CBD.
“Ensuring Victorians can get into Greater Melbourne and across suburbs, rather than having to go into the CBD then back out, helps speed up travel times, get cars off the road and increases opportunities for businesses in Melbourne’s east,” he said, adding the Commonwealth was “proud to partner” with the Victorian government on the project.
The funding boost supports construction of a 26-kilometre underground orbital rail line through Melbourne’s eastern and south-eastern suburbs, designed to link major employment, education and health precincts and ease pressure on the city’s radial rail network.
The project will connect four key interchange points at Cheltenham, Glen Waverley, Box Hill and Clayton, linking existing rail corridors in multiple directions, including regional services on the Gippsland line.
The federal government says the rail line is intended to improve cross-suburban travel, reduce reliance on CBD transfers and support development in Melbourne’s middle eastern corridor.
The federal funding builds on an earlier $2.2 billion contribution for land acquisition and early works, with tunnelling expected to begin before the end of the year. Tunnel boring machines are currently being assembled on site, and the project is scheduled for completion in 2035.
Victorian Premier Jacinta Allan said the project was essential for managing population growth in Melbourne, which she said would reach the scale of London by the 2050s.
“The Suburban Rail Loop will slash travel times and cut congestion for busy families.”
Federal Infrastructure Minister Catherine King said the investment formed part of a broader push to expand nationally significant transport infrastructure, including Melbourne Airport Rail and the North East Link.
She said the SRL East would improve integration across transport modes and deliver a “future-ready transit network” for Melbourne’s fastest-growing areas.
Victorian Suburban Rail Loop Minister Nick Staikos said the project would underpin long-term growth and housing development along the corridor, arguing it would support tens of thousands of additional homes and jobs.
He also noted the opposition had indicated it would cancel the project, a claim used by the government to underline the political divide over its future.
The SRL East is expected to support about 3,000 construction jobs and up to 8,000 ongoing jobs once operational, while enabling development around new precincts across Melbourne’s east and south-east.
Support our Journalism
No-nonsense journalism. No paywalls. Whether you’re in Australia, the UK, Canada, the USA, or India, you can support The Australia Today by taking a paid subscription via Patreon or donating via PayPal — and help keep honest, fearless journalism alive.
