Robert 'Dutchy' Holland Oval at Awaba would benefit from a $274,000 upgrade if Labor won the federal election on May 18.
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Member for Hunter, Joel Fitzgibbon, visited the facility (formerly Awaba Oval) on Saturday to announce the funding commitment.
He said the money would be used to install floodlights on the sports field, to resurface the futsal courts, and to build a dressage arena at the equestrian grounds next to the oval.
President of Robert 'Dutchy' Holland Oval Community Operating Committee, Cec Gavenlock, said the money would make a profound difference to the community.
"This would help us to take this facility to the next level," he said.
Having floodlighting would open the oval to more user groups, particularly in winter, he said.
The oval is currently home to junior and senior cricket clubs, and a junior football club.
Committee secretary Simone Palfreyman said the planned upgrade would "probably double" the number of users at the oval, and improve their safety.
"The pony club grounds haven't been aerated or top dressed for 10 years. If you're riding and you come off, it's like hitting concrete," she said.
"And when it's wet, it's like riding on slippery concrete."
She said the many young members of Toronto Pony Club would welcome a softer and safer surface.
The funding commitment was celebrated on Saturday when locals gathered at the oval to share in a community barbecue with Mr Fitzgibbon and to take part in sporting demonstrations.
"This project ensures that the Awaba community will have greater access to sporting facilities which will have many flow-on benefits to the community, families and individuals," Mr Fitzgibbon said.
"Sport is important for social inclusion. The area of Awaba already has a passionate sporting community so this investment in the oval will only create more opportunity for people to come together.
"It's wonderful to see this announcement so enthusiastically welcomed by our local Awaba sporting groups. I thank all the volunteers who give their time to ensure people of all ages can experience the social and physical benefits of sport."