The New South Wales government has given the go-ahead to a planning application for the AUS$41m (US$30.8m, £16.7m, 24.5m euro) expansion of the Australian Museum in Sydney.

The government announced last June that it would be funding the entire project over five years. It is the largest capital works undertaken at the 150-year-old museum in almost 25 years.

The scheme will see the construction of a new Collections and Research Building, the refit of some existing laboratory and work spaces and the refurbishment of two heritage galleries.

“This is the oldest museum in Australia but we need to make sure it has room to expand and can cater for modern exhibitions,” said planning minister Frank Sartor. “This project will cater for the museum’s science collection and storage needs for the future.”

A spokesperson for the museum said: “Since the Australian Museum first opened to the public nearly 150 years ago, the kind of space needed for the museum's staff, collections and public programs has changed dramatically; not just in terms of size, but also in terms of environmental controls, specialist storage, equipment and technological needs.

“The result – a lot of people, objects, laboratories and storage mixed together in increasingly unsatisfactory conditions.”

Gallery refurbishments began in January and the upgrade of the heritage exhibitions spaces began in February. Now that planning permission has been received, work will begin on the new Collections and Research Building later this year. The building is expected to open for staff in 2008.

The museum currently welcomes around 300,000 visitors per year. Details: www.austmus.gov.au