The $14.5 million project, which includes $11.1 million from the NSW Government, means increased capacity for additional domestic services, more retail options and includes infrastructure capable of handling international flights.
The expansion opens up the possibility for future routes to Adelaide, Perth and Cairns as well as international services to New Zealand and South East Asia.
The 2,600m2 expansion of the existing terminal building includes a new arrivals hall providing a dedicated area for permanent customs, immigration and quarantine facilities.
Stage 2 of the expansion is set to begin in the coming weeks and will involve a full refurbishment of the existing terminal, which will be dedicated to check-in and an expansive departure lounge.
The entire project is expected to be complete in late 2015.