While the announcement fell short of the figure needed for stage one of the precinct masterplan, unveiled by Premier Denis Napthine in July, it was a step in the right direction to overhaul the neglected train yards. 

The $5.3 million, which will come through if the Coalition is re-elected at November's election, will include work to prepare the heritage goods shed for private development, resurfacing of station platforms, upgrading of platform lighting, refurbishing the passenger waiting area and upgrading the station toilets. 

Dr Napthine said the funding would go a long way towards the continued upgrade of the railway station in Ballarat. 

"These projects are really important projects to get the masterplan under way and to give people of Ballarat the confidence that a Coalition government is committed to implementing the masterplan," he said. 

"The Coalition is certainly committed to the further development of the masterplan in conjunction with the city council." 

Dr Napthine said he believed the $5.3 million would available in 2015 if elected. 

He described the entire masterplan as an "integral" project for Ballarat 

The masterplan itself is currently undergoing a community consultation period with Dr Napthine saying the government and the City of Ballarat had had very positive feedback. 

The first stage of the masterplan includes moving the bus interchange to the northern side of the train station, improved car parking, a complete refurbishment of the heritage goods shed to turn it into an exhibition space and a public forecourt at the front of the goods shed, which could be used for public markets.

As part of the project an internal road would also be constructed linking Nolan and Lydiard Streets. 

A second stage of the project is also expected to include the potential for a four-and-a-half star hotel at the site, along with other private business opportunities.