Last week Member for Kiama Gareth Ward and Fire and Rescue NSW Illawarra duty commander Inspector John Hawes inspected the site where earthworks have started for the $2.5 million project.

Inspector Hawes said the station would be relocated from the "tiny little box" on the Princes Highway at Albion Park Rail to Russell Street.

"It's been there for over 40 years and it's getting worn out - it's too small, the size of the trucks are getting bigger therefore it's getting harder to fit the trucks in," he said.

"Because the population of Albion Park is more centralised this way, this fire station is going to be more central to the service of the people of Albion Park."

The station will feature work spaces for four staff, a larger engine bay, locker rooms, a kitchen, a gymnasium equipment storage and shower and servicing facilities.

Inspector Hawes said a larger facility would be able to accommodate more staff and six new staff members would be brought from Sydney.

Currently, Albion Park Rail is served by paid-by-call retained firefighters only.

"So what we're going to support that with is full-time staff," he said. "There will be a station officer and three firefighters on four separate shifts, plus the paid-by-call staffing."

Mr Ward said it was a great investment in front line services.

"One of the things I said I would do when I stood for election is go to parliament and ensure that we brought back money for investments like this and we've done that today."