The Government of Australia has decided to invest $115m in planning and preparation work for the Western Sydney Airport project.
According to Australia Infrastructure and Transport Minister Darren Chester, the Western Sydney Airport would support growth and investment, as well as provide new job opportunities in Western Sydney.
Chester said: "Western Sydney is Australia’s third largest economy and would be our fourth largest city in its own right, but too many of its residents have to travel outside the region for work.
"Work towards an airport commencing operations in the mid-2020s is underway, with buildings being cleared and minor roads within the site closing.
"To ensure a rail connection can be established to the airport site when the time is right, we have allocated $26m in 2016-17 for developing the design for rail access."
The Australian Government will provide $89m to fund preparatory activities for the 1,700ha airport site, including fencing, security management and planning the relocation of the TransGrid power line.
Minister for Major Projects Paul Fletcher said: "The Turnbull Government is working through the steps required for a Western Sydney Airport so that residents of Western Sydney have improved travel options, so that there is additional aviation capacity for Sydney and so that this transformational infrastructure project can generate jobs and prosperity for Western Sydney."
Five years after opening, the new airport will reportedly be able to handle ten million passengers annually, and have generated about 9,000 direct jobs.
Fletcher added: "We are also committed to having the best available noise mitigation arrangements, and a detailed noise management plan would be developed before operations commence."
The owners of Sydney’s Kingsford Smith Airport possess the right of first refusal over the plan to develop and operate Western Sydney Airport.