Parramatta Light Rail Stage 2 is one of the largest transport infrastructure projects currently underway in Western Sydney. As construction progresses, property owners along the corridor should understand what the project involves, whether their land may be affected, and how to protect their position when it comes to compensation.

Parramatta Light Rail Stage 2 will connect Stage 1 and the Parramatta CBD to Sydney Olympic Park, passing through Camellia, Rydalmere, Ermington, Melrose Park and Wentworth Point. The project will link communities on both sides of the Parramatta River and support the NSW Government's vision of a "30-minute city."

Construction is being delivered in phases. The Enabling Works package, the first 1.3km of new light rail alignment, is already underway and includes a new public and active transport bridge over the Parramatta River between Wentworth Point and Melrose Park. This will be the first major bridge to cross the Parramatta River since the Ryde Bridge was completed almost 40 years ago. The works also include upgrades to surrounding public spaces, including Archer Park.

In January 2026, the NSW Government announced that construction would begin on Stage 2a, the extension from Camellia to Wentworth Point. Stage 2a will deliver 4.5km of new dual track, an active transport bridge connecting Camellia and Rydalmere, nine stops, an expanded Stabling and Maintenance Facility, and additional light rail vehicles. The procurement process for a contractor is currently underway.

Will There Be Compulsory Acquisitions for Parramatta Light Rail Stage 2?

Transport for NSW has confirmed that some property acquisitions will be needed for a project of this scale. As with Stage 1, the light rail alignment is designed to sit primarily within existing road corridors, and whole or partial acquisition will only occur where there is no feasible alternative.

Personal Relationship Managers have been appointed by Transport for NSW to work directly with affected property owners and tenants as the project progresses. If your property falls within or near the Stage 2 corridor, particularly around Camellia, Rydalmere, Ermington, Melrose Park or Wentworth Point, it is worth understanding your rights early, well before any formal notice is received.

What This Means for Affected Landowners

If your property is acquired, whether in full or in part, you are entitled to compensation under the Land Acquisition (Just Terms Compensation) Act 1991 (NSW). This can include the market value of the land, compensation for any reduction in the value of your remaining property, disturbance costs, and other losses arising from the acquisition.

Navigating this process can be complex, and the compensation initially offered does not always reflect the full value of what has been lost. Having the right legal and valuation advice from the outset can make a significant difference to the outcome.

The compensation first offered by Transport for NSW is a starting point, not the final word. Landowners who take the following steps early tend to be in a stronger position to receive a fair outcome:

FM Legal acts exclusively for landowners affected by compulsory acquisition and property compensation matters across NSW, including major transport corridor projects like Parramatta Light Rail. As an experienced compulsory acquisition lawyer, our team can help you understand the process, review any correspondence from Transport for NSW, and ensure your interests are properly represented throughout negotiations so you receive fair compensation for your loss.

Legal costs in compulsory acquisition matters are often recoverable, though this is assessed on a case by case basis depending on your individual circumstances.

If you own property along the Parramatta Light Rail Stage 2 corridor and want to understand how to maximise your compensation, book a consultation with our principal solicitor Flo Mitchell here: https://calendly.com/flo-16

Text FM Legal: +61 437 628 382
Email: law@fmlegal.com.au