The federal government committed $1.6 billion in Tuesday's budget to build the long-awaited M1 Pacific Motorway extension to Raymond Terrace.
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A Treasury official told the Newcastle Herald on Tuesday that the Commonwealth would provide 80 per cent of the funding for the $2 billion road.
The NSW government would need to contribute the other $400 million for a project widely regarded as one of the most important and overdue infrastructure initiatives in the Hunter.
The official said the government had no clear timeline on when work would start on the extension.
"We are in discussions with the NSW government about how it will fit into their infrastructure program," the official said.
Planning for the extension started 15 years ago.
When built, it will connect the end of the M1 at Black Hill with the Pacific Highway at Raymond Terrace, bypassing the Hexham Bridge bottleneck and cutting travel times, especially during busy holiday periods.
It includes 15 kilometres of dual carriageway around Hexham and Heatherbrae; interchanges at Black Hill, Tarro, Tomago and Raymond Terrace; and a 2.6km bridge over Woodlands Close, the Main Northern Railway, New England Highway and Hunter River.
The NSW government has committed $200 million under its Rebuilding NSW program to get the project ready for construction and allocated $4.3 million for more planning in its 2018-19 budget.
Hunter Business Chamber has repeatedly included the extension on its annual wish lists for funding, and chief executive officer Bob Hawes described its inclusion in the budget as "good news".
The M1 funding was the largest single new road project in Tuesday's budget and the third largest infrastructure commitment, behind only the $3.5 billion first stage of the Western Sydney North South Rail Link and $2 billion for Melbourne to Geelong fast rail.
Other Hunter road funding included $20 million for as-yet unidentified projects on Bucketts Way, $20 million for Clarence Town Road and $140 million for the "Tenterfield to Newcastle corridor".
The budget also includes a previously announced $4.7 million over five years to support University of Newcastle research into per- and poly-fluoroalkyl substances (PFAS).
The budget noted that the NSW government was preparing a business case, due this year, for faster rail between Sydney and Newcastle.
It also allocated another $40 million for five more fast-rail business cases and $14.5 million to set up a National Faster Rail Agency to support quicker trains between capital cities and regional centres.
One of the new business cases to attract funding is for faster rail between Sydney and Wollongong.
Another would investigate a link from Sydney to Parkes via Bathurst and Orange.
Michael Parris
Michael Parris reports on politics for the Newcastle Herald. He started at the Herald in 1994 after working in the ABC Newcastle newsroom. Michael spent much of his career as a sub-editor before moving into political reporting in 2017. He was a finalist in the Sports Australia national media awards for his stories about a male-only tennis club in Newcastle. He has covered NSW and federal elections, state and federal budgets and local politics. He has also written extensively about the COVID-19 pandemic with a special focus on data analysis and the effects of lockdowns on the Hunter community.
Michael Parris reports on politics for the Newcastle Herald. He started at the Herald in 1994 after working in the ABC Newcastle newsroom. Michael spent much of his career as a sub-editor before moving into political reporting in 2017. He was a finalist in the Sports Australia national media awards for his stories about a male-only tennis club in Newcastle. He has covered NSW and federal elections, state and federal budgets and local politics. He has also written extensively about the COVID-19 pandemic with a special focus on data analysis and the effects of lockdowns on the Hunter community.
