Home / Business and Economy / Sydney M6 Tunnel Crisis: Project on Verge of Collapse?
Sydney M6 Tunnel Crisis: Project on Verge of Collapse?
5 Jun
Summary
- NSW government secretly considered abandoning the M6 motorway project.
- Construction halted indefinitely since March 2024 due to tunnel sinkholes.
- Dispute over costs for fixing damaged tunnels remains unresolved.

The New South Wales government has explored abandoning the multibillion-dollar M6 motorway project in Sydney's south. Confidential documents reveal that senior Transport officials discussed a scoping study for project abandonment late last year, as a dispute with contractors escalated.
Construction on the four-kilometre underground M6 motorway between Arncliffe and Kogarah has been halted indefinitely since March 2024. This stoppage followed the appearance of sinkholes above the twin tunnels, leading to a stalemate over liability and the cost of repairs.
Transport for NSW issued a default notice and an ultimatum for work to resume by May 1, which was not met. The agency later rejected an offer from contractors to complete the motorway, deeming it inadequate. The project, which has already cost taxpayers at least $2.7 billion, now faces delays beyond its revised 2028 completion target.
Opposition figures have criticized the government's secrecy, demanding transparency regarding discussions about abandoning the M6. Roads Minister Jenny Aitchison stated the government's priority is securing the best deal for NSW, aiming for project completion without incurring excessive costs.