Lithgow Council demands millions in compensation over major highway closure
By Chloe · Published 04 Nov 2026 · Updated 04 Nov 2026
Lithgow, NSW
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Lithgow Council demands millions in compensation over major highway closure - Lithgow, NSW
Smart summary
Lithgow City Council calls on NSW and federal governments to establish a compensation fund as road closures continue to affect local businesses, workers and residents.
Lithgow City Council has called on the New South Wales and Australian governments to provide additional financial support to communities affected by the ongoing closure of the Great Western Highway at Victoria Pass.
The demand was reported on 4 November 2026 as local businesses, families and workers continued to experience disruption caused by increased traffic and detours. The highway closure has created significant challenges for residents and businesses across Lithgow and surrounding communities.
The westbound lane of Chifley Road at Clarence was also closed on Monday after asphalt work around a pothole deteriorated into a damaged section measuring approximately 30 metres. The additional closure has increased pressure on alternative routes already carrying traffic diverted from the Great Western Highway.
Lithgow Mayor Cassandra Coleman has called for the establishment of a dedicated, multimillion-dollar Lithgow Community Detour Compensation and Support Fund. The proposed fund would provide assistance to businesses, families and workers dealing with the ongoing consequences of the road disruptions.
The council believes the community should receive additional support because local roads are carrying traffic that would normally travel along the Great Western Highway. The increased vehicle movements have affected everyday travel and created additional challenges for businesses that depend on reliable road access.
Small businesses are among those facing difficulties. Longer journeys and changes to normal traffic patterns can affect customer visits, deliveries and the movement of goods. Businesses that depend on visitors and passing motorists may also experience changes in customer activity.
Workers and families have faced additional travel considerations when commuting between local communities and other regional centres. Increased traffic on detour roads can make journeys less predictable, particularly during busy periods.
The NSW Government has responded by pointing to financial assistance already committed to affected communities and small businesses. A government spokesperson said $23.5 million had been allocated to support those experiencing the effects of the closure.
This package includes $21.2 million for small business grants, with eligible businesses able to apply for grants of up to $25,000.
The existing funding is intended to help businesses manage the financial impact of the disruption and maintain their operations while road restoration work continues.
The Great Western Highway closure at Victoria Pass has been a significant infrastructure issue for the region. The highway is an important transport connection between Sydney and communities in western New South Wales, including Lithgow and Bathurst.
Transport for NSW has been coordinating repair work and alternative traffic arrangements. The NSW Government's published project information indicates that construction is expected to be completed in the second quarter of 2027, subject to site conditions and construction progress.
The council's latest demand highlights the continuing financial and practical pressures facing regional communities when major transport routes remain unavailable.
The proposed compensation fund would provide additional assistance beyond existing government commitments. Discussions about further support are important for local residents and businesses as they continue adapting to the extended closure.
BusinessesClosureHighwayAdditionalCommunities
Lithgow City Council has called on the New South Wales and Australian governments to provide additional financial support to communities affected by the ongoing closure of the Great Western Highway at Victoria Pass.
The demand was reported on 4 November 2026 as local businesses, families and workers continued to experience disruption caused by increased traffic and detours. The highway closure has created significant challenges for residents and businesses across Lithgow and surrounding communities.
The westbound lane of Chifley Road at Clarence was also closed on Monday after asphalt work around a pothole deteriorated into a damaged section measuring approximately 30 metres. The additional closure has increased pressure on alternative routes already carrying traffic diverted from the Great Western Highway.
Lithgow Mayor Cassandra Coleman has called for the establishment of a dedicated, multimillion-dollar Lithgow Community Detour Compensation and Support Fund. The proposed fund would provide assistance to businesses, families and workers dealing with the ongoing consequences of the road disruptions.
The council believes the community should receive additional support because local roads are carrying traffic that would normally travel along the Great Western Highway. The increased vehicle movements have affected everyday travel and created additional challenges for businesses that depend on reliable road access.
Small businesses are among those facing difficulties. Longer journeys and changes to normal traffic patterns can affect customer visits, deliveries and the movement of goods. Businesses that depend on visitors and passing motorists may also experience changes in customer activity.
Workers and families have faced additional travel considerations when commuting between local communities and other regional centres. Increased traffic on detour roads can make journeys less predictable, particularly during busy periods.
The NSW Government has responded by pointing to financial assistance already committed to affected communities and small businesses. A government spokesperson said $23.5 million had been allocated to support those experiencing the effects of the closure.
This package includes $21.2 million for small business grants, with eligible businesses able to apply for grants of up to $25,000.
The existing funding is intended to help businesses manage the financial impact of the disruption and maintain their operations while road restoration work continues.
The Great Western Highway closure at Victoria Pass has been a significant infrastructure issue for the region. The highway is an important transport connection between Sydney and communities in western New South Wales, including Lithgow and Bathurst.
Transport for NSW has been coordinating repair work and alternative traffic arrangements. The NSW Government's published project information indicates that construction is expected to be completed in the second quarter of 2027, subject to site conditions and construction progress.
The council's latest demand highlights the continuing financial and practical pressures facing regional communities when major transport routes remain unavailable.
The proposed compensation fund would provide additional assistance beyond existing government commitments. Discussions about further support are important for local residents and businesses as they continue adapting to the extended closure.
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