Tasmania is set to receive more than $100 million in road infrastructure upgrades as part of the 2026–27 federal budget, with major construction on two Hobart corridor projects expected to begin within the next year.
The federal government has approved funding for two significant road projects in Hobart’s south and east, aimed at cutting congestion and improving safety on some of the state’s busiest routes.
The Rokeby Road – South Arm Road upgrades will receive $44 million from the federal government, along with $11 million from the Tasmanian government.
The project includes road duplication, intersection upgrades and improved bus, pedestrian and cycling infrastructure across Hobart’s eastern corridor, connecting Lauderdale, Rokeby, Oakdowns and Hobart.
It will also deliver safety improvements around Lauderdale Primary School.
Major construction is expected to start in October 2026, with completion anticipated in late 2027.
The second project, the Algona Road Grade Separated Interchange and duplication of the Kingston Bypass, has attracted $61.12 million in federal funding and $15.3 million from the state government.
That work will include a roundabout upgrade at the intersection of Algona Road and the Channel Highway, plus duplication of the Kingston Bypass from Algona Road to the Huon Highway.
Construction is expected to begin in early 2027 and wrap up by mid-2028.
Federal Franklin MP Julie Collins said the projects would tackle growing demand on key corridors.
“This is about strengthening connections between surrounding residential suburbs, local industry and key highway corridors, while helping to accommodate continued population and employment growth in Hobart’s south and east,” she said.
“By addressing current congestion, these works will improve network efficiency and provide more consistent journey times for commuters, freight and public transport.”
Collins said both projects were “critical projects aimed at improving capacity, reducing travel times and enhancing safety for some of Tasmania’s busiest transport corridors.”
The budget also includes broader national programs that’ll flow to Tasmania, including $500 million for the Active Transport Fund to build new bicycle and walking pathways, $750 million across the Thriving Suburbs and Growing Regions programs and $22.5 million for the next round of the Stronger Communities Program.
The federal government’s total infrastructure commitment to Tasmania over the next 10 years now sits at $2.2 billion, including $1.8 billion for major road and rail projects and close to $400 million for smaller programs.
