Kingsley MLA Andrea Mitchell welcomed the $250,000 allocation as part of the 2015-16 State budget announcement on Thursday.
The Public Transport Authority will use the funds to extend the shelter about 120m, constructing a 3m wide, 360sq m awning over the western platform (to Butler).
�This outcome will provide a better environment for passengers who use this station in both wet and hot weather,� Ms Mitchell said.
The Greenwood station has more than 2000 boardings on an average weekday.
The Budget also provided $1.14 billion for 300 new C-series railcars to be delivered over the next 10 years, starting in 2019.
They will be configured as 50 six-car trains, as opposed to the current three-car configurations, and will have four doors either side of each railcar.