Inland Rail Project Gets State Funding Boost for Toowoomba Freight Routes

The Queensland Parliament passed the Inland Rail Acceleration Bill in June 2026, directing state resources to the construction phase of the $10 billion national inland rail project between Melbourne and Brisbane.

The bill comes into force as crews work on the 126 kilometre section that passes through the Western Downs and near Toowoomba, a route used by local grain growers and beef producers to move produce to ports and markets.

Changes to transport access for residents

Toowoomba residents who rely on the rail corridor for work or business will see altered crossing times at level crossings between Oakey and Dalby once upgraded track is laid. The legislation requires construction crews to maintain at least two daily windows for road vehicles between 6 am and 8 pm during the 2026-2027 financial year.

Farmers in the Western Downs renewable energy zone who currently truck grain to Toowoomba for rail loading can apply for permits to use the new intermodal facility at Charlton once it opens. The government says the policy will reduce average road kilometres travelled by 15 per cent for those growers by the end of 2028.

Budget figures and expected timeline

Budget papers tabled with the bill list $340 million in state spending for local earthworks and bridge upgrades on the Toowoomba range section. The Productivity Commission has found similar rail investments in regional Queensland have cut freight costs by between 8 and 12 per cent once full sections open.

Work on the Toowoomba bypass tunnel is scheduled to finish in late 2027. Local councils will receive quarterly progress reports on traffic management and dust controls from the project office starting in August 2026.