THE cost of planned upgrades to the Nepean Highway has been revised, with $15 million promised to the project now expected to be spent elsewhere.
$15 million of a promised $50 million for upgrades to the Nepean Highway and Overton Road intersection is set to be diverted to other Victorian roads. Prime Minister Anthony Albanese promised the money for the Nepean Highway/Overton Road project during the 2025 election campaign.
Last week the federal government announced it had allocated $10 million to Frankston Council for works on the Nepean Highway Precinct, $25 million to the state government to deliver the intersection upgrade, and reallocated the remaining money elsewhere.
“The remaining $15 million will be reinvested in other Road Blitz projects within Melbourne. In addition, the Road Blitz Project is funding upgrades to the McLeod Road, Station Street intersection, and the Thompson Road and Mornington Peninsula Freeway interchange,” a joint media release issued by the federal government, state government, and Frankston Council read.
The media release read that the funding changes had occurred “following a detailed review of updated project costings and in line with the request by Frankston Council at the 2025 federal election for $10 million to support the Nepean Highway Precinct.”
The Times asked Dunkley MP Jodie Belyea if all of the reallocated $15 million would still be spent within the Dunkley electorate. A response from her office read “it has not been confirmed how the $15 million in savings will be allocated.”
“Revised cost estimates were submitted which confirmed that the project will be delivered as promised and under budget,” the response read. “The $15 million in savings will be reinvested through the Road Blitz program, which includes upgrades to McLeod Road, Station Street and the Western Port Highway. Both projects which fall in the Dunkley electorate.”
Belyea said the outcome “demonstrates what strong partnerships between all levels of government can achieve – delivering real, practical outcomes for our local community.”
“The upgrades to the Nepean Highway and Overton Road intersection, at the gateway into Frankston, along with improvements across the Nepean Highway Precinct, Carrum and Patterson Lakes are a major win for the Dunkley community – delivering safer roads, better connections and a more accessible community,” Belyea said.
Frankston mayor Cr Sue Baker said the funding would “deliver important safety upgrades and improved connections along the Nepean Highway corridor. Council looks forward to continuing to work with state and federal governments to build on this investment and deliver the full Nepean Boulevard vision for our community, which is critical to supporting housing growth and shaping Frankston City as a vibrant and connected city centre into the future.” Frankston MP Paul Edbrooke said “upcoming upgrades to the Overton Road/Nepean Highway intersection will significantly improve safety and create a smoother, more efficient flow of traffic throughout the area.”
During a visit to Frankston last year, the Prime Minister confirmed that the federal government would spend $50 million at Nepean Highway and Overton Road, and $25 million at McLeod Road and Mornington Peninsula Freeway. The money for the Nepean Highway and Overton Road project was expected to be used to install traffic signals. (“Road money stumped up before election” The Times 24/3/2025).
First published in the Mornington News – 9 June 2026
