A two-year development phase of a high-speed rail line between Sydney and Newcastle has begun, which will ensure work on the long-awaited transport project can begin.
The development phase will be responsible for the approvals process of the route, awarding contracts and finalising the design.
It's estimated a high-speed rail line would mean travel time of only one hour between Sydney and Newcastle and 30 minutes from Sydney to the Central Coast.
The federal government will pump an extra $229 million into the project, bringing the total spent by the Commonwealth on the development to almost $660 million.
Transport Minister Catherine King said the development phase would be the ground work for construction to finally begin on the rail link.
"Carefully planned, costed and detailed preparation takes time, but it means when construction starts, it is built to last," she said.
A business case for the Newcastle to Sydney stage will also be released on Tuesday.
The case projects a boost of $250 billion to the economy over the next 50 years, with the first stage set to produce about 99,000 jobs.
High-speed rail has been long been touted as a future transport option in Australia, but successive governments over multiple decades have failed to see the thought bubble leave the station.
There's been several proposals for a high-speed rail route linking Melbourne, Sydney and Brisbane.
Nationals leader David Littleproud is among those who have cast doubt over the viability of the latest attempt, saying it risks becoming a white elephant without Australia having more baseload power at its disposal.
"I am not opposed to examining these types of projects. There have been proposals from Toowoomba to Brisbane as well," he said last week.
"But if you are going to build this infrastructure, you need to be able to power it. It is pointless laying track if you cannot run the trains.
"Unless the energy system is fixed, this will not work."
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