Almost half a billion dollars will go to the publicly-owned corporation rolling out Australia's NBN to better connect rural and regional areas.
The $480 million for NBN Co will permit increased data allowances and products for about 300,000 premises in the coming weeks, with further upgrades to follow.
The funds to upgrade the fixed-wireless network will mean faster internet and better mobile phone coverage, Communications Minister Michelle Rowland said on Monday.
"Our plan will deliver tangible benefits to regional Australians, by improving safety, enhancing connectivity and increasing productivity through cutting-edge broadband connections," she added.