Labor Pledges $1 Billion for Rail Corridor in Western Sydney

The Coalition has already hinted at matching the Labor’s billion dollar commitment.

Australian Prime Minister Anthony Albanese introduces Labor leader and Premier elect Chris Minns at the NSW Labor reception in Sydney, Australia, on March 25, 2023. AAP Image/Dean Lewins

As election season heats up, Labor has announced a $1 billion commitment to secure a vital rail corridor between Sydney’s southwest and Western Sydney Airport, ensuring future transport links in the growing region.

The funding will go towards land acquisition and planning but not cover construction. The proposed corridors will connect Leppington, Bradfield, and the Macarthur region with the airport, addressing a critical gap in Sydney’s rail network.

Prime Minister Anthony Albanese pledged the investment at the 2025 Airport City Summit in Sydney, emphasising its importance for a continuous rail link between Sydney and the airport.

“We want to make sure we secure future rail corridors, not just between Leppington and Bradfield at the airport, but also between the Bradfield city centre and all those booming suburbs in the Macarthur region,” he said on March 13.

The timeline for the corridor preservation project will be determined in collaboration with the New South Wales (NSW) government.

Albanese also confirmed that a joint business case is underway to assess a possible extension of the St Marys line further north.

Property Council Welcomes Economic Boost

The Property Council of Australia welcomed the funding, saying it would enhance investor confidence in the region.

Western Sydney regional director Ross Grove said the proposed extension would provide a smoother connection between the airport and Liverpool.

“The South West Rail Link Extension is one of those ‘missing links’ holding back the region’s growth capacity,” he said.

Without this connection, a rail commuter traveling 18 kilometres from the new airport to Liverpool would need to cover over 55 kilometres, switching trains at least twice across three lines.

Coalition to Match Labor’s $1 Billion Rail Corridor Plan

The Coalition is set to match Labor’s $1 billion commitment to acquiring land for future rail corridors in Sydney’s south-west, ensuring primary transport links move forward regardless of the election outcome.

Treasury spokesman Angus Taylor is expected to confirm the pledge soon, solidifying plans for two new rail connections—one between the Bradfield aerotropolis and Leppington and another linking Bradfield to Macarthur.

The announcement comes amid concerns that the Sydney Metro Western Sydney Airport project could be delayed until mid-2027, despite the airport’s scheduled opening in late 2026.

Shadow Minister for Western Sydney, Melissa McIntosh, criticised both federal and state Labor governments for the potential delay, calling it unacceptable.

“It is not good enough that the Albanese and Minns Labor governments are watching over a lengthy delay to the new airport’s Metro opening,” she said.

“This will mean passengers landing at the new airport will not have a Metro to jump on to access the rest of Sydney for many months after the first plane lands.”

Expanding Transport Links Beyond Rail

Alongside its investment in future rail corridors, the NSW government is taking steps to boost aviation capacity at Western Sydney International ahead of its 2026 opening.

A new $8 million Western Sydney International Take-Off Fund—matched by the airport to create a $16 million pool—aims to attract international airlines to establish new routes.

Minister for Jobs and Tourism John Graham said the investment would help ensure the success of Western Sydney International Airport.

“You only get to open a new airport once. That’s why we’re backing Western Sydney Airport to land new routes and ensure this once-in-a-generation opportunity is a runway success,” he said.

The initiative is part of the state’s broader plan to position the airport as a major global gateway, supporting its goal of reaching $91 billion in visitor expenditure by 2035.

Officials expect the funding to bring more than 162,000 international visitors to NSW and generate an estimated $530 million in tourism revenue.

Airline ticket sales for flights are set to begin in late 2025, with the fund helping attract more carriers beyond those already committed, such as Qantas, Jetstar, and Singapore Airlines.

Western Sydney International and Destination NSW will determine airline incentives on a case-by-case basis, offering passenger subsidies and marketing support. The amount allocated to each airline will depend on the number of flights and passengers it brings to the airport in its first three years.

This aviation investment is part of a $10 billion NSW-Federal funding package to improve roads and transport infrastructure connecting the Western Sydney International Airport to Sydney’s transport network.