"I stood at this intersection in 2007 with Kevin Rudd and Wayne Swan. We went to the 2007 election with a $300 million plan to fix this traffic bottleneck once and for all," he said.

"It is the plan the people of my electorate supported and it is the plan that I am committed to delivering.

"And I'm thrilled to see the $300 million investment detailed in the latest federal Budget."

Long in advance of this Budget announcement, the State and Federal Governments have been working together to refine the design and planning, finalise land and property resumptions, and make the other necessary technical preparations before construction can get underway.

"I know a lot of people - myself included - have been anxious to see this project commence and now we have the money it's full steam ahead," he said.

Mr Perrett said the project would take Kessels Road under Mains Road delivering the best possible outcome for traffic flow, safety, amenity, and community impact.

"People would remember at the last state election the Liberal National Party promised to halt this project and condemn this treacherous intersection to more years of traffic gridlock," he said.

"This has been a tough fight but today we are a step closer to delivering the upgrade southside motorists deserve."