Additional $50m funding to further upgrade Monaro Highway

More than $50 million is being invested by the Australian Government to deliver further upgrades to Monaro Highway in Canberra. 

As part of the 2025-26 Federal Budget, another $53.5 million has been allocated to build the infrastructure that the growing Australian Capital Territory (ACT) communities need and deserve. This includes: 

• $30 million to complete the Monaro Highway Upgrade 

• $20 million to complete a final business case and commence detailed investigations for the Monaro Highway Upgrade Stage 2 

• $3.5 million to complete the duplication of Gundaroo Drive 

“Road upgrades are important to ensuring the safety of Canberrans on their commutes, travelling to holidays and everything in between. Upgrades like these to the Monaro Highway will benefit the many Canberrans who use it every day,” Member for Canberra Alicia Payne said. 

The Monaro Highway Upgrade is a long-term series of improvements that are delivering improved safety, freight efficiency as well as faster and smoother commutes for residents. 

The additional $30 million to complete Stage 1 and the $20 million funding for the Stage 2 business case brings the total Australian Government investment into the Monaro Highway Upgrade to $165.3 million. 

The first stage of the upgrade is divided into four sections: 

• A new overtaking lane between Williamsdale Road and Royalla Drive and left hand turn lane into Old Cooma Road – completed in July 2020 

• Layon Drive Intersection upgrade – currently under construction 

• Hume Intersections upgrade (Sheppard Street, Mugga Lane and Tralee Street). Possible features include: 

• • New flyover on the Monaro Highway connecting Mugga Lane and Tralee Street in Hume 

• • Modification of the existing Monaro Highway/Sheppard Street intersection to allow left-in/left-out only movements to and from the Hume Industrial Precinct 

• • Upgraded roundabout at Mugga Lane and associated lanes approaching the new Hume flyover as well as on-ramp access to the Monaro Highway northbound carriageway 

• • Upgrades to local streets and intersection within the Hume Industrial Precinct including Tralee Street approach to the Monaro Highway and the intersection of Tralee Street and Sheppard Street 

• Isabella Drive intersection upgrade. Possible features include: 

• • New flyover on the Monaro Highway over Isabella Drive extension 

• • Extension of Isabella Drive from the existing Monaro Highway roundabout, including a new roundabout connecting to Tralee Street south 

• • Monaro Highway southbound off-ramp and associated lanes connecting to the Isabella Drive extension 

• • New lanes running parallel with the Monaro Highway northbound carriageway between Isabella Drive and Mugga Lane to facilitate traffic entering and exiting Monaro Highway 

Stage 1 works are due to be completed in late 2027. 

Meanwhile, planning for Stage 2 of the Monaro Highway Upgrade will commence in mid-2026 and be completed in mid-2028. 

“This Budget, we’re investing in the transport infrastructure Canberrans need to support a growing city. 

“We’re injecting a further $50 million into the Monaro Highway to continue these critical upgrades, ensuring it’s in good nick for residents and visitors – some of whom drive it every day. 

“We will continue to work with the ACT Government to deliver the roads and rail projects that matter the most to Canberra,” Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King said. 

“I welcome this additional investment into critical infrastructure in the ACT. The Monaro Highway is a main arterial route for local residents and it is important that we get these improvements complete with the ACT Government,” Member for Bean David Smith said. 

Lastly, the $3.5 million funding allocated towards the Gundaroo Drive duplication will ensure the completion of the project – expected early next year. This takes the total Australian Government investment in the project to $30.3 million. 

This project will deliver a dual carriageway between Ginninderra Drive and the Barton Highway alongside intersection upgrades at Dumas Street, Owen Dixon Drive and Chuculba Crescent. 

“Canberra is on the move – and we’re laying the track and paving the way. 

“With investment in light rail, bike paths and roads like the Monaro and Gundaroo upgrades, we’re building a city that’s faster, more efficient, and better connected. 

“After a decade of Canberra being overlooked by the Liberals, these projects are about designing the future; making it easier for Canberrans to get around, connect with each other, and make the most of our growing city,” Member for Fenner Andrew Leigh said. 

Source: Minister for Infrastructure, Transport, Regional Development and Local Government; ACT Government – City Services