$20m upgrade for Port Macquarie's round-a-bout involves "unavoidable" impacts on koala habitat

With a growing population and mounting traffic pressure, Transport for NSW has committed $20 million to upgrade “The Donut”, a Port Macquarie round-a-bout at the Oxley and Pacific Highway interchange. The project promises smoother traffic flow for drivers – but upgrades will result in the removal of native vegetation and koala habitat.

🍃 Habitat impacts

Upgrades to the Oxley Highway and Pacific Highway interchange at Port Macquarie include changing the roundabout to two lanes, adding approach and slip lanes and exit ramps, and installing traffic lights at all approaches to the roundabout. 

Environmental impacts were regarded as the largest issue generated by the proposal, as the construction would require the removal of about 7.19 hectares of vegetation, including 2.73 hectares of native vegetation and koala habitat.

Field assessment of the proposed site confirmed the presence of two primary koala food trees – Tallowwood and Flooded Gum. In the Port Macquarie-Hastings Council Draft Koala Plan the proposal site has been mapped as core koala habitat.

The proposal site also occurs within an Area of Regional Koala Significance (DPIE 2019). Given the presence of primary koala food trees, alongside numerous Koala records both within the study area and the broader locality, the vegetation has the potential to function as a corridor for the species – providing Koala movement between known core areas of larger patches of suitable habitat nearby. According to the report, the proposal site is unlikely to support resident koalas due to its small size.

The report also states the removal of native vegetation is unable to be avoided given its location in the road corridor immediately adjacent to the proposed road infrastructure.

The vegetation at the proposal site is also potential habitat for nine other threatened fauna species, including three microbat species, three frog species and two bird species. And almost five hectares of the vegetation proposed for removal comprises exotic grassland and a small farm dam. 

The report states mitigation measures have been recommended to minimise the impacts on biodiversity values, but the proposal still triggers the need for biodiversity offsets for impacts on potential koala habitat. 

➡️ The project

The NSW Government has allocated $20 million toward the project, to be delivered by Transport for NSW. Development consent from Port Macquarie-Hastings Council is not required.

The proposed upgrade will be split into two stages: the western side of the interchange to Billabong Drive (stage one) and, subject to available funding, the eastern side of the interchange to Port Macquarie Service Centre (stage two).

Construction of stage one is expected to commence in mid-2026 and would take around 24 months to complete.

✍🏻 Feedback on environmental factors

Transport for NSW is currently seeking community feedback on the Review of Environmental Factors.

The project team will be available to answer questions at two community information sessions being held this month:

🗓️ Monday 11 August, 4pm - 6pm at Sovereign Place Town Centre
15 Chancellors Drive, Thrumster

🗓️ Tuesday 12 August, 10am - 12pm at Wauchope Library
53 High Street, Wauchope

📧 How to  make a submission 

Online: Have Your Say via transport.nsw.gov.au/oxleyinterchange 
Email: [email protected] 
Post: Oxley Interchange Upgrade, PO Box 576, Grafton, NSW 2460

The public can provide feedback on the Review of Environmental Factors (REF) by filling in a submission form by midnight, Monday 1 September 2025.

Thumbnail: current Pacific Highway and Oxley Highway interchange. Picture: NSW Government