High-speed rail hoped to ease housing crisis as government throws $230 million more at plan

The rail union hopes high-speed rail could ease the housing crisis as the federal government throws an additional $230 million to plan the rail link between Sydney and Newcastle two years ahead of its proposed construction start.

The massive infrastructure development would connect Newcastle to the Sydney CBD in one hour, link the Central Coast to the capital in half an hour and add billions to the economy, according to a business case spruiked by the government.

Infrastructure, Transport, Regional Development and Local Government Minister Catherine King today announced the next steps in a project the Albanese government says will reshape the Newcastle, Hunter and Central Coast regions.

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"High Speed Rail between Newcastle and Sydney will change the way people live, work and travel in our country's most populous region," she said.

"It will connect the Newcastle and Central Coast communities to Sydney in a way that has never been done before."

Prime Minister Anthony Albanese began teasing an announcement last week, arguing  high-speed rail connecting the most heavily populated parts of the country "absolutely makes sense".

"We have a small population relatively for a big nation, island continent. We're the only inhabited continent on earth that doesn't have high-speed rail," he told the ABC. 

"And certainly Newcastle to Sydney to Canberra to Melbourne makes absolute sense. It's where most of our population is along that corridor. 

"And what makes it financially viable is the economic development along the route as well that regional economic development."

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The government said today's announcement would involve "detailed planning work" for a link from Sydney to Newcastle, costing $229.6 million, taking the government's total investment to $659.6 million for the development phase.

"The High Speed Rail Authority will go metre by metre, to lock in the design, approvals process, scope and cost of the future rail line," the government said.

"At the end of this two-year process, the project will be shovel-ready."

The government said it was "the detailed work required to lock in the design, approvals process, scope and cost to ensure major construction contracts can be awarded".

It also unveiled a business case for the project, showing it would boost the Australian economy by $250 billion over the next 50 years and produce more than 99,000 new jobs.

The Rail, Tram and Bus Union said the announcement is a "significant step forward" that could kickstart "a new era", adding that high-speed rail could also meaningfully ease housing pressures by ensuring people are not locked out of jobs and essential services.

"Soaring prices in our major cities has forced many Australians to relocate to regional communities, but they risk making unsafe commutes to work," RTBU National Secretary Alex Claassens said.

"High-speed rail will open up genuine opportunities for people to live in regional areas while maintaining access to secure employment in metropolitan areas.

"This can help ease housing pressure in our capitals while supporting sustainable regional development."

While there has been some support for a high-speed rail network, some think tanks and experts, including the Grattan Institute, believe such a project is not suitable for Australia.

"While a bullet train may be a captivating idea, it's not realistic for Australia," think tank transport program head Marion Terrill wrote in a 2020 report, suggesting rail renovations to improve speed more modestly as a better alternative.

"Our population is small and spread over vast distances; the countries most like us – Canada and the US – don't have bullet trains either."

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Albanese used his first term as prime minister to establish the High Speed Rail Authority to plan to build a network connecting Brisbane, Sydney, Canberra and Melbourne, as well as Newcastle and Central Coast regional lines.

An evaluated business case has proposed construction start by 2027 and completion by 2042.

The HSRA is also looking into potential public and private financing options.

King said the development phase would lay the foundations for the rail link, "ensuring we secure the rail corridor and undertake detailed planning before we start building".

"Carefully planned, costed and detailed preparation takes time, but it means when construction starts, it is built to last," she said.

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