The Victorian Government has announced a $5 billion “public transport blitz” in its 2025-26 Budget.
The announcement includes funding to activate the long-awaited Melbourne Metro Tunnel, increase train frequencies across several lines, and redevelop Sunshine Station as a “superhub” – a step toward the Melbourne Airport Rail project.
The package includes $727 million to launch the Metro Tunnel, a 9-kilometre twin-tunnel system beneath Melbourne’s CBD, connecting the Sunbury, Cranbourne, and Pakenham lines. The tunnel is expected to relieve congestion in the City Loop and enable turn-up-and-go services for the three lines.
Another $98.7 million is set to boost train frequencies across seven metropolitan and regional lines.
The Werribee line will see two additional trains per hour during peak periods, while the Sandringham line will offer a service every 10 minutes between peak periods. The Craigieburn and Upfield lines will have trains at least every 20 minutes, including late nights and weekends. The Gippsland line’s Traralgon route will gain interpeak services every 40 minutes once the line upgrade is complete. The Bendigo line will feature longer trains on more weekend services, while the Seymour line will add a peak service each morning and afternoon.
The centrepiece of the package is the $4 billion redevelopment of Sunshine Station into a “superhub”, part of the Melbourne Airport Rail project. The funding includes $2 billion previously allocated to the stalled Airport Rail project.
The revamped station should be able to support over 40 trains per hour, providing a major interchange for metropolitan, regional, and future airport services.
Transport Infrastructure Minister Gabrielle Williams described the plan as a congestion-cutting measure, while Premier Jacinta Allan framed it as a win for commuters.
The timing – a week before the Budget – and the repurposed Airport Rail funding have drawn questions, highlighting the government’s struggle to balance ambitious rail upgrades with cost control.
The Metro Tunnel is set to open later this year, with new services to be added in stages. Some will start before the tunnel’s launch, while others will align with the opening.
