
Gundaroo Drive is among the list of road projects receiving funding in the 2025/26 Federal Budget. Photo: ACT Government.
The ACT Government has welcomed an injection of $50 million from the Federal Government for the city’s roads, to help make them safer and less congested.
As previously reported, the 2025/26 Federal Budget has committed $846 million for transport projects in the ACT.
Up to $30 million of this will go towards completing the first stage of the Monaro Highway upgrade, and $20 million to start planning for Stage 2.
The first section of Stage 1 was completed back in 2020; a new overtaking lane at Williamsdale Road and Royalla Drive and a new left-hand-turn lane into Old Cooma Road.
The remaining three sections cover construction of a new flyover bridge at the Lanyon Drive intersection (currently underway), upgrades to the Sheppard Street, Mugga Lane and Tralee Street intersections in Hume, and another flyover at the Isabella Drive intersection.
These works are expected to be completed in late 2027.
This year’s budgeted amounts bring the Federal Government’s total contribution to the Monaro Highway project to $165.3 million.
The remaining $3.5 million will go towards the duplication of Gundaroo Drive, bringing the Fed’s total contribution to this project to $30.3 million.
It includes adding a lane to each side of Gundaroo Drive between Ginninderra Drive and the Barton Highway, as well as upgrading the intersections with Dumas Street, Owen Dixon Drive and Chuculba Crescent.
Construction is set to finish early this year.
Federal Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King said this year’s budget was about “investing in the transport infrastructure Canberrans need to support a growing city” and promised to “continue to work with the ACT Government to deliver the roads and rail projects that matter most to Canberra”.

Plans for the Lanyon Drive intersection . Photo: ACT Government.
The ACT Government said the announcement reinforced a “strong partnership” between the two governments.
“This funding injection will support key transport projects across the city, enhancing road safety and easing congestion,” it said in a statement.
At a press conference this week, ACT Treasurer Chris Steel also described the highway as a “pretty big ticket item” which would “improve freight capacity, improve safety on a critical road, supporting the southern part of our city, but also the broader region as well”.
Minister for City Services Tara Cheyne said the government continued to lobby the Commonwealth about “a number of important infrastructure projects to support our city into the future”.
These include a stadium in Bruce and the new National Convention Centre and entertainment pavilion in the city.
In previous budgets, the Federal Government has tipped in funding towards two more of the ACT’s major road projects.
This includes $53.6 million for the duplication of William Hovell Drive in Belconnen between Glenloch Interchange and Drake-Brockman Drive.
A further $46.67 million has been committed for the duplication of two sections of Athllon Drive in Tuggeranong, between Sulwood Drive and Drakeford Drive, and between Hindmarsh Drive and Melrose Drive.

How long has that been there? Photo: David Murtagh.
In an update posted 20 March, the ACT Government said the tender application period for the William Hovel Drive project had closed and the procurement process was underway to engage a contractor.
It said a Environmental Impact Statement (EIS) had been required due to the road’s location between two nature reserves and proximity to areas of “environmental significance”.
“Amendments include changes to road design and associated infrastructure, updates to drainage design, relocation of utilities, traffic control device updates, lighting, landscaping, critter crossings and associated works,” it said.
Construction is expected to take three years to complete.
Meanwhile, planning approvals have been submitted for the southern end of the Athllon Drive duplication project, and “enabling works” – such as new footpath connections, lighting and utility service connections” will continue throughout the year.
The main construction works are anticipated to go out to tender in late 2025.
Design work is still in progress for the northern section, with preliminary designs to be shared for public feedback later this year.