One of Sydney’s most notorious traffic bottlenecks is a step closer to being transformed, with work progressing on a $200 million upgrade to the intersection of Homebush Bay Drive, Australia Avenue and Underwood Road at Sydney Olympic Park.

Often dubbed Sydney’s – and even Australia’s – worst roundabout, the multi-lane intersection outside the Direct Factory Outlet (DFO) shopping centre has long been a source of frustration for motorists, particularly during weekday peak periods, weekends and major events at Sydney Olympic Park.

The Australian and NSW governments have jointly committed $200 million to replace the existing roundabout with a signalised intersection designed to improve traffic flow, reduce congestion and enhance safety for motorists, pedestrians and cyclists.

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According to Transport for NSW, the project aims to “ease congestion, increase safety, and improve travel times and connectivity to Sydney Olympic Park and Homebush for all road users”. Investigation work began earlier this year, including utility and geotechnical investigations, soil and groundwater sampling, and drilling at the intersection and surrounding areas.

Transport for NSW says construction planning is continuing following community consultation on proposed designs, with the preferred option featuring traffic lights and additional turning lanes to better manage the heavy traffic volumes.

The intersection carries almost 5000 vehicles every hour during weekday peak periods and has recorded 41 crashes between 2019 and 2023, highlighting longstanding safety concerns.

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A Transport for NSW spokesperson told Yahoo News the project is intended to provide “safer and more efficient travel for all road users” while improving access to Sydney Olympic Park, Homebush and surrounding destinations, with work progressing through the planning and design phases.

As part of the early works program, Transport for NSW carried out up to 15 daytime and 20 night shifts of investigation work between April and June 2026. Temporary lane closures, reduced speed limits and traffic control measures were put in place while crews completed site investigations, with most work scheduled overnight to minimise disruption.

The project represents the latest attempt to fix one of Sydney’s most heavily criticised intersections, which has become synonymous with lengthy queues, difficult lane changes and delays for shoppers, commuters and event traffic alike. Once complete, the upgrade is expected to significantly improve traffic flow through one of western Sydney’s busiest road junctions.