As a long-standing major commercial area in Sydney's east, a railway line had long been considered to Bondi Junction.

An underground shopping complex was proposed to be constructed at the concourse level of the station (similar to that which exists at Martin Place).

Additionally, an underground walkway would be provided to the then proposed (later constructed) Bondi Junction Plaza shopping centre.

Construction of the Eastern Suburbs Railway generally proceeded from the Erskineville tunnel portals to Bondi Junction.

As a result of an inquiry by an Eastern Suburbs Railway Board of Review, a number of recommendations were made and accepted by the government.

[3] Relevantly these included: As a result of these changes, Bondi Junction became the permanent terminus of the Eastern Suburbs and Illawarra railway lines.

The changes allowed the full line capacity of 20 trains per hour to be turned at Bondi Junction, the prior limit being 14.

Complementing the stabling capacity at the station is the erection of a staff meal and waiting room on the platform level.