Work on a high-speed rail line between Sydney and Newcastle could begin by the end of the decade, but the federal government will spend almost $700 million on the project before the first shovel hits the ground.
A two-year development phase will begin on Tuesday, ensuring 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 NSW's capital 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 Commonwealth's total spend on the development to almost $660 million.
The total cost of the project, including an airport extension, has been estimated at more than $90 billion - making it one of Australia's most expensive infrastructure projects.
Transport Minister Catherine King said should the development phase be successful, a decision on the project would be made by 2028, with construction to start the following year.
"This is getting it ready for a final investment decision. If you think of the way the private sector works, they do a huge amount of work before they actually are ready," she told reporters in Newcastle.
"We want to make it happen. We really want to see it come to Australia finally. We can't be the only populated country in the world without high-speed rail."
The business 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.
Stations would be set up in Sydney, the Central Coast, Lake Macquarie and Newcastle.
Further stages include expanding the high-speed rail to Parramatta in Sydney's west, before heading to the city's second airport.
Plans are being developed for potential expansion to Melbourne and Brisbane.
Ms King said the two-year development process was needed to ensure the project could be as smooth as possible.
"We are going to have to employ a lot of people in this development phase, doing that design work, people who are experts at geotechnical work, at engineering work, at planning work," she said.
"Getting all of the planning and environmental approvals through this, as you'd understand, this new rail line does go through some fairly sensitive areas, so all of that work, this is what that money goes for, getting this ready."
High-speed rail has long been touted as a 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 route linking Melbourne, Sydney and Brisbane.
Australian Railway Association chief executive Caroline Wilkie said the project would transform the east coast.
"High-speed rail has been a dream for decades but, today, we are a step closer to making it a reality," Ms Wilkie said.
"Global experience tells us that high speed rail can achieve urban renewal, housing and other development opportunities that are simply unmatched by other infrastructure investment."
Rail, Tram and Bus Union national secretary Alex Claassens said the development phase would be critical.
"For too long, our transport network has lacked the long-term investment and vision required to keep pace with the growing needs of Australians," he said.
"High-speed rail represents a shift in direction, away from reliance on the airline industry and private vehicles, with the potential to reshape how we move and how our regions grow."
