The money would help Atwea College, formerly WEA Hunter, improve its rehearsal areas, live performance space and recording studio at The Creative Arts Space on Beaumont Street, Hamilton.

Atwea executive director Rowan Cox said the funds would pay for sound proofing two rehearsal rooms, electrical works, moving the recording studio and new instruments and other equipment.

The college offers a one-year music industry diploma and practice and recording spaces for high school-age performers.

Senator Kristina Keneally, who has emerged as a key figure in Bill Shorten's inner circle during the election campaign, arrived in Hamilton with Labor's "big red bus" to make the funding pledge with federal Newcastle MP Sharon Claydon.

"The facilities will be accessible to community members and disadvantaged young people who don't have access to anywhere they can practise," Ms Keneally said.

"This funding will allow for soundproofing and electrical works, upgraded lighting and a stage extension. It will also fund some fabulous new equipment like speakers, amps and instruments."

Ms Claydon said the project was a perfect fit for Newcastle and would help Atwea replace the youth music programs lost when Newcastle City Council closed The Loft in 2013.

"Live music has long been the lifeblood of Newcastle, but it's getting harder and harder for young people to find the space to hone their skills," she said.

The funding commitment is part of Labor's $28 million Soundtrack Australia policy, which includes supporting performers, setting a cap on ticket resale prices and backing two charities working in music and mental health.

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