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ACT Assembly approves light rail expansion and community hub rezoning for 2027

Canberrans in the north and inner south can expect construction disruption from late 2027 and a new civic facility opening by 2029, following two significant votes at last week's Assembly sitting.

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By Canberra Policy Desk · Published 8 July 2026, 8:55 am

4 min read

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ACT Assembly approves light rail expansion and community hub rezoning for 2027
Photo: Photo via Wikimedia Commons

The ACT Legislative Assembly on 3 July passed two motions with direct consequences for suburban Canberra: a revised funding arrangement for Light Rail Stage 2B between the ACT Government and the federal infrastructure portfolio, and a rezoning approval for a mixed-use community hub on Gungahlin Town Centre's eastern fringe. Neither measure is abstract policy. Both carry firm timelines that will affect daily commutes, local traffic patterns and access to services for tens of thousands of residents across Belconnen, Gungahlin and the inner south.

The timing matters because Stage 2B, the extension running from London Circuit through the parliamentary triangle and eventually to Woden, has been through multiple funding reviews since the 2022 federal election. Infrastructure Australia's 2025 priority list rated the project as a "high priority initiative", and the federal government's current infrastructure forward estimates include $490 million for the ACT's urban rail network over the forward years to 2028-29. The Assembly's vote formalises the ACT Government's acceptance of a 50-50 cost-sharing model with Canberra's three federal seats, Bean, Canberra and Fenner, all returning Labor members whose offices have publicly backed the project's progress through parliamentary questions.

What the Light Rail decision means street by street

For residents in Woden and Tuggeranong, the revised funding split brings the project one step closer to a construction start the ACT Government says is expected in the second half of 2027. That means commuters using Yamba Drive and Adelaide Avenue should plan for changed lane configurations from around mid-2027 onward, based on project staging documents tabled with the Assembly. The government says the tram is projected to be operational between City and Woden by 2030, cutting the trip from Woden Town Centre to Civic to roughly 23 minutes. Current weekday peak bus journeys on Route 6 average 38 to 45 minutes depending on traffic.

Inner-south residents near Kingston and Barton will feel the construction phase most acutely. The route corridor through the parliamentary triangle requires utility relocation work expected to begin in early 2028, according to the project's environmental impact statement published by the ACT Environment, Planning and Sustainable Development Directorate. Residents within 200 metres of the corridor are expected to receive formal notification letters from the project authority 90 days before any works begin on their street segment.

Gungahlin hub rezoning and the community services timeline

The Gungahlin rezoning vote was less contested but carries its own practical timeline. The Assembly approved a change to the Territory Plan that reclassifies a 1.4-hectare parcel on Hibberson Street from commercial zone CZ5 to a mixed-use category that permits a government-funded community services facility alongside retail tenancies. The ACT Government says the hub is expected to house a public library branch, a Medicare-integrated primary health outpost and childcare facilities, with construction projected to start by mid-2028 and the facility open by the end of 2029.

Gungahlin is one of the fastest-growing districts in the ACT. The 2021 Census recorded the Gungahlin district's population at just over 84,000, and the ACT Government's own planning projections estimate that figure will exceed 100,000 by 2031. Local community groups have noted for several years that the district's library and health infrastructure has not kept pace with residential growth. The rezoning removes a regulatory barrier that previously prevented the site's inclusion in the 2024-25 capital works program.

Both decisions now move from the Assembly to implementation phases managed by different directorates. The Light Rail Stage 2B project authority sits within Transport Canberra and City Services, while the Gungahlin hub is coordinated through the Community Services Directorate in partnership with the planning authority. Residents wanting to track progress or register for consultation notifications can do so through the ACT Government's Have Your Say portal. The next formal project update for Stage 2B is scheduled for October 2026, when the procurement tender for civil construction is expected to be released publicly.

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Published by The Daily Canberra

Covering policy in Canberra. This article was generated by AI from the linked sources and was not reviewed by a human editor before publishing. See our editorial standards.

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