New South Wales Premier Kristina Keneally has announced a $A152 million funding boost for the Sydney Opera House.
Ms Keneally announced the funding on Sunday before the New South Wales budget is released on Tuesday.
The ABC reports the work involves building an underground tunnel and loading dock to reduce traffic on the forecourt and a new lift to move heavy sets and scenery.
The upgrade will be the biggest building works to take place at the site since it opened in 1973.
There have been reports the Opera House is in such severe financial straits it could be closed.