The federal government has committed a further $157 million for the Gold Coast light rail taking the total contribution to $269 million.
Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development Michael McCormack said Stage 3A is an absolute priority for the Gold Coast.
The project will involve eight new stations built and an upgraded interchange at Burleigh Heads.
Gold Coast residents and tourists have taken more than 42 million trips on the light rail since it opened five years ago.
The rail system would run 6.7 kilometres from Broadbeach to Burleigh Heads with a journey time of approximately 17 minutes.
It is hoped the extension of the light rail will assist in reducing the amount of cars on the road, while creating a sustainable form of transport for the suburbs.
Construction is expected to start next year and the project is then projected to take two years to complete.
The Australian Government has now committed $269 million, the Queensland Government $351 million and the City of Gold Coast $92 million to fund Gold Coast Light Rail – Stage 3A project.
This announcement comes alongside a $1.9 billion package from the federal government to fast track spending on road and rail projects all over Queensland.