Premier Daniel Andrews said works have "started in earnest" after six electricity transmission towers in the city's west were relocated to free up space for a rail bridge over the M80 Ring Road.
On Sunday Mr Andrews announced a $143 million upgrade to Sunshine Station so it could become a major interchange along the rail line for regional Victoria.
"It's going to be just as significant as Southern Cross Station, arguably even more so," Mr Andrews told reporters on Sunday.
He said the funding was a government announcement and not an election commitment.
Opposition leader Matthew Guy committed to following through with the development at Sunshine if he wins the upcoming election.
Major works on the rail link are set to begin next year, which would eventually be connected to the Suburban Rail Loop project (SRL).
The SRL has become a major issue heading into the November poll, with the opposition vowing to scrap the $35 billion first stage of the project if it wins government and redirect money towards health instead.
Meanwhile Mr Guy announced all Victorian students would become eligible for free lunches at school if he wins government.
The $300 million election promise covers a two-year pilot program in selected state primary schools, before expanding to other schools after that.
He expected the program to cost $800 million over the forward estimates if fully implemented across all year levels.
The policy is designed to support student wellbeing, provide cost of living relief for families and support small to medium sized catering businesses.
It would be an opt-in program and non-government schools would have the option to take up the program.
Mr Guy said the average family would save $5000 a year.
"It's worked in New Zealand and it's worked in other jurisdictions, we believe it can work in Victoria, no doubt about it," he said on Sunday.
The existing breakfast program run by Foodbank Victoria would remain in place.
In a statement Education Minister Natalie Hutchins said the last time the Liberal Party was in power the government cut a free fruit program which left "thousands of Victorian kids hungry."
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