Sydney Airport announces $130M upgrade for T2 Domestic Terminal

Among the improvements is a new bag drop facility designed to increase baggage processing capacity from 1,500 to 1,800 bags per hour by 2026. Additionally, new security technologies and state-of-the-art CT scanners will allow passengers to move through security without unpacking liquids or laptops. This advancement is expected to more than double the current screening rate from 235 passengers up to 500 per hour.

The updated security area will feature seven lanes in total, including specific lanes for families and those needing assistance. Two new lifts are also planned just after security. Over the past year, T2 has seen several updates, including new food and retail options and Australia's first domestic airport department store.

Originally built in the 1990s to handle approximately 8 million passengers annually, T2 now processes around 17 million each year. If it were an independent airport, it would rank as Australia's fourth-largest. Renovation work is set to begin in 2025, with potential temporary disruptions anticipated during construction.

In addition to domestic upgrades, Sydney Airport plans enhancements for its international terminal (T1) by late 2025. This includes installing next-generation scanners across 15 new screening lanes—boosting passenger throughput by 30%. These upgrades aim to comply with Australian Government mandates requiring "standard three" security equipment by late next year.

The airport has already implemented two of these upgraded lines and expects a third by year's end. Furthermore, additional inbound border processing E-gates operated by the Australian Border Force (ABF) are scheduled for rollout.