Newcastle and the Hunter will be eligible for a share in $100 million of of Commonwealth cash over the next two years, set aside to relieve parts of regional Australia stricken by drought, bushfire and the coronavirus pandemic, as well as areas primed for economic diversification.
Deputy Prime Minister Michael McCormack was expected to announce on Wednesday a new regional recovery fund, part of $135 million in spending to be outlined in next week's budget.
AAP reports that the Hunter-Newcastle region has been earmarked to benefit alongside the NSW Snowy Mountains and Parkes regions.
Mr McCormack said the money would be used to support recovery and growth through projects co-ordinated with other levels of governments.
"These partnerships will support existing regional plans by developing a package of targeted initiatives to deliver jobs, economic recovery and economic diversification," the Nationals leader said.
Labor leader Anthony Albanese, however, has accused the government of not doing enough to fuel regional job creation in the aftermath of the horror summer.
"We need to have a plan as well in terms of immediate jobs for issues like land care and for looking after areas that were impacted by the bushfires," he told Triple M radio on Tuesday.
He said none of the $200 million earmarked in for an emergency response fund flowed during the last financial year.
"That could have been spent supporting those areas and resilience, but also creating jobs," Mr Albanese said.
The deputy prime minister will outline the new measures in a speech to the Regional Australia Institute on Wednesday.
The package also includes an extra $30 million for telecommunications projects outside of national broadband network fixed-line areas.
That will make the Regional Connectivity Program worth $83 million.
A further $5 million will be spent on developing local leaders in the regions, including councillors, volunteers, members of community organisations and industries.
"These measures are all part of our economic plan for a more secure and resilient Australia, helping the regions bounce back and then thrive, to drive Australia's economic recovery," Mr McCormack said.
Victoria's Gippsland region is included, along with Cairns, Gladstone, Mackay-Isaac-Whitsunday and the tropical north in Queensland.
All of Tasmania, South Australia's Kangaroo Island and Western Australia's South West are covered.
Australian Associated Press