Bundanon has been given an extra $33 million over four years to enhance its standing as a national collecting institution.
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Artists Arthur and Yvonne Boyd donated the Bundanon property, just outside Nowra, to the Australian people in 1993.
It has long been home to Australia's largest artist in residence program, and last year opened expanded facilities, featuring an art museum and the spectacular bridge for creative learning.
Federal Member for Gilmore, Fiona Phillips, said the extra funding "will ensure Australia has a strong cultural infrastructure, which is a key pillar of Revive, - the government's new national cultural policy".
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"This funding means that Bundanon will be able to grow and invest for the future, knowing it finally has a government that values it just as the people of the South Coast always have," she said.
Mrs Phillips said Bundanon was "incredibly important both physically and historically".
"It also plays an important role in truth-telling for First Nations people both from the South Coast, and further afield.
"Located in a deep and ancient valley formed by the Shoalhaven River, Bundanon is so important as a place of creativity, both in the past and present," Mrs Phillips said.
