The Government of Australia and Queensland have decided to provide A$500m ($381.6m) road package for Queensland region in Australia.

The road package will be used for six-laning of the Pacific Motorway (M1) between Mudgeeraba to Varsity Lakes, as well as carry out a major upgrade of the M1/Gateway Motorway merge (southbound lanes) at Eight Mile Plains.

The project works also include construction of the Walkerston bypass near Mackay, as well as widening of the Mt Lindesay Highway between Browns Plains and Beaudesert.

"We’ve also committed to the construction of the Walkerston Bypass, this will deliver benefits for the region and more jobs for Central Queensland."

The road package also includes funding for the planning of the M1, Varsity Lakes to Tugun.

Queensland Premier Annastacia Palaszczuk said: “Today we’ve announced more than half a billion dollars in funding for major road infrastructure projects in South East Queensland and Central Queensland which is great for Queensland jobs.

“We have reached an agreement and can now get on with the job of upgrading the M1.

"We’ve also committed to the construction of the Walkerston Bypass, this will deliver benefits for the region and more jobs for Central Queensland.”

Palaszczuk further explained that the Queensland Government is pleased to have reached this outcome following constructive discussions with the Australian Government.

Australia Infrastructure and Transport Minister Darren Chester said: “Although final project costs for the M1 will not be known until the end of April, we have reached an agreement that the Australian Government will keep our money on the table with the State picking up the balance.

“The tender processes are expected to bring the cost down, so the final splits will not be known until then. The important thing is we have broken the impasse and will work together to deliver these important projects.”

Queensland Minister for Main Roads and Road Safety Mark Bailey revealed that early works on the M1 Gateway Merge project are expected to commence in November this year.

It is reported that early works on the M1 Gateway Merge project and M1 – Mudgeeraba to Varsity Lakes project are expected to start in November next year and mid-next year, respectively, with major construction to commence following the Commonwealth Games.

Construction on the A$150m ($114m) Walkerston Bypass, which will extend the pipeline of local jobs in the Mackay region, will start upon completion of the Mackay Ring Road Stage 1 project.