Labor member for Eden-Monaro Kristy McBain has committed $500,000 for a Merimbula skatepark saying that now skateboarding was an Olympic sport, it was important for the community to have a good facility.
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Ms McBain was speaking at Berrambool, at the site of the existing, but rundown, skatepark.
There has been a concerned effort by community members to push for a new skatepark and in particular at Ford Park although there has been some opposition towards the location.
"This is a $500,000 commitment to build a skatepark, it's not a determination on the location, that's up to the community and council," Ms McBain said.
"This isn't just a hobby, a nice-to-have, these skateparks really help people gain confidence and learn to talk to people of all generations," she said.
President of the Sapphire Coast Skatepark Association Peter O'Keefe said it was "the next big step in this project".
"If it comes to fruition, it'll make it easier to get that other $500,000 (to make the skatepark happen)," he said.
"It's massive news. To be recognised that's what's important. It's something that will really benefit the area," he said.
The group has raised $20,000 which will be used on a design. Council has received the group's proposal for the skatepark to be in Ford Park.
A $70,000 traffic study for the area is currently out for tender from council, Mr O'Keefe said. This is expected to be considered alongside the skatepark proposal, by council.
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