The carpark would be located at Stanford Road, just off the Hunter Expressway.

The location is currently a common spot for commuters to park and carpool to work.

Labor candidate for Paterson Meryl Swanson said along with using the current carpark, people had also been parking in front of residents homes.

Ms Swanson said the carpark would improve safety and encourage carpooling.

“This funding will improve the quality of life for residents and improve accessibility for commuters and travellers,” she said.

Hunter MP Joel Fitzgibbon said the carpark was “a missing link from the Hunter Expressway project.”

The funding would be made available to Cessnock City Council to undertake works.

Cessnock mayor Bob Pynsent was pleased with the announcement.

He said the carpark would be tar-sealed but did not yet have details on how many car spaces would be allocated.