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Byron Shire
June 3, 2026

Byron bypass cost blows out to $19m

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The now approved Byron Bay bypass route.
The now approved Byron Bay bypass route.

Hans Lovejoy

While there appears little to no sympathy from councillors for the plight of Butler Street residents facing a bypass, local NSW MP Tamara Smith (Greens) has told The Echo that she ‘supports their right to take the matter as fas as they need to.’

At last week’s Council meeting, unanimous approval was granted for staff to relocate car parking associated with Byron Services Club  in preparation for the bypass.

‘If the costs are continuing to rise, this should be looked at again,’ she says, and believes the council should ‘work more closely with the residents.’

While that position is at odds with Greens mayor Simon Richardson, Cr Paul Spooner confirmed with The Echo that the project’s budget was updated last July to $19m.

The plans are to extend a widened road along Butler Street past the markets, and turn left through wetlands, emerging where Mitre 10 and Byron Music are located.

A Land and Environment Court case against Council, instigated by Butler Street Community Network and headed by Paul Jones, is yet to be heard.

Within expectations

When asked for an explanation of the additional cost, Council’s general mananger Ken Gainger told The Echo, ‘Council, as is common with litigants, refrains from commenting publicly on matters currently before the courts so as not to unduly prejudice its legal position.’

‘While I can advise that progressive cost estimates for the Byron Bay town centre bypass are to date within Council expectations (the final cost will not be known until the outcome of court case is finalised and any further conditions of development consent and their cost implications can be evaluated), it is inappropriate to comment on the other matters raised by Mr Jones until the court litigation is settled.’

Mayor Richardson told The Echo, ‘Costs are changing all the time. They sat at about $19m for a while and have come down a bit.

‘[The] bottom line is that we don’t have the money without the state government stumping up further.

‘The GM, key staff and I had a meeting with the minister a while back. We are waiting until the court case is concluded and then will know more.

‘Of course, if costs continue to rise we need to look at it – not anything outrageous in that statement.’

Warned of cost

The Butler Street Community Network say they warned of the cost blowout a year ago and are highly critical of the mayor’s continual support of the route.

Representative Paul Jones told The Echo, ‘The rail corridor route was costed less than Council’s proposal and now they are facing down very costly development conditions imposed by their own approval.

‘Despite a mountain of objections, Council sees fit to work against its community rather than for it. If there were  no alternative, this may be a defence, but Council doggedly continues this attack in the face of the commonsense rail corridor bypass solution that avoids almost all community concerns and would deliver a safe and secure traffic route.’

Mr Jones also says that while Council claimed the corridor could not be used as a bypass owing to a lack of state government permission, the Rail Corridor Park masterplan promoted its use as a public area, presumably under state-approved council authority.

‘We are outraged. The Town Masterplan refused point blank to discuss the bypass issue as their consultants had been warned off.’

Heritage area

Mr Jones says, ‘Byron Bay has only two intact residential heritage character areas, the Butler Street precinct and the Kingsley Street precinct.

‘Byron Council’s bypass proposal will ensure the commercial transformation of Butler Street and the effective obliteration of its valued character.

‘But worse than this, the new main road funnels through a narrow built-up, highly pedestrianised neighbourhood; it will duplicate the danger and congestion of Bangalow Road – what a model to aspire to!

‘So while you are stuck fuming in this summer’s traffic gridlock, dodging the potholes, think about the real motivations of our council; think about their failure to deliver for so many years; think about their lack of basic problem-solving and management skills in this appalling example of their approach; think about whether you are prepared to throw more of your hard-earned cash into their pockets to waste on destroying what we entrust them to preserve.’

Funds not tied

Remarkably local NSW MP Tamara Smith said she discovered through freedom- of-information requests that the initial $10.5m funding was not tied to the project.

‘This is despite being advised by RMS bureaucrats it was, in the presence of planning minister Rob Stokes.’   

Ms Smith said, ‘Surely there’s a win-win, where a soft neighbourhood with heritage homes and markets can be kept while Council looks at the broader issue of traffic management.

‘Apart from being homes for residents, it’s an iconic space. In my teenage years, I spent a lot of time at Butler Street reserve at the drumming circles.

‘They should scrap the $400,000 legal battle and work more closely with the residents.’



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