The boost comes in the budget announced by Treasurer Wayne Swan, who also announced that an extra $71 million (£43 million) is to be pumped into grassroots sport.

The funding is the Government's long-awaited response to businessman David Crawford's controversial review of Australian sports funding which had recommended Government funding for sports should be maintained at present levels, supplemented by additional money if high-performance targets are reached.. 

Instead, in the biggest cash injection to sport in Australia's history, sport will receive another $324.8 million (£196.6 million) over four years, which includes funding to extend the life of existing programmes and $195.2 million (£118.1 million) in new money.

It takes total investment in the area to $1.2 billion (£726 million) over the forward estimates period, which takes in the 2012 London Olympic Games and Paralympics.

While elite athletes will enjoy around two-thirds of the extra spending, future funding to sporting organisations will hinge on increasing community participation.

The creation of 5,000 new talent identification and athlete development opportunities and 112 national coaches will cost $124 million (£75 million), while the Australian Institute of Sport (AIS) will get $62 million (£37 million) and the Australian Sports Commission's (ASC) high performance programmes will get $52 million (£31 million).

Disabled athletes have not been forgotten, with $16 million (£9 million) dedicated to the Australian Paralympic Committee's elite programmes and to support the broadcast of their 2012 Games.

The publication of Crawford's report last November, which rejected calls for an increase in funding to the country's top athletes, had sparked a storm of protest, led by Australian Olympic Committee (AOC) President John Coates.

Coates labelled the report "disrespectful" and "insulting to Australia's Olympic achievements.

But Coates (pictured) claimed the Government had got got the balance right in the budget, with Australia now able to secure a top five medal ranking at the London Olympic Games in 2012.

He said: "As far as the elite side is concerned, it ticks every box.

"The Government has set aside additional funding for international competition, for direct assistance to athletes, importantly for talent identification and development.

"It will ensure the Australian Olympic team that goes to London and the winter team [at Sochi 2014] will be able to compete on an equal footing with our competitors.

"They've [the Government] taken notice of us.

"We are very pleased."

In line with Crawford's recommendation to channel funding towards the sports most people play, $71 million (£43 million) will see up to 45,000 community sports people get access to coaching and training initiatives.

As part of the new funding package, national sporting organisations' funding agreements with the ASC will soon depend on how well they encourage community participation in sport.

To encourage older Australians to get involved, a national sport volunteer plan will be developed, while high performance scholarship holders will have to give back to the community as coaches, administrators, mentors and managers.

Finally, Crawford's recommendation to separate the AIS from the ASC has been over-ruled, however Labour will appoint a chairperson to the Commission, and look at its board structure.

His suggestion to create a national sports facilities fund was also rejected.


Related stories
December 2009: Call for Australian State Sports Ministers to back Crawford Report
December 2009: Coates and Ellis hold crisis talks over Crawford report
November 2009: Legal action threat by AOC over Crawford Report
November 2009: AOC too used to getting their own way claims Crawford
November 2009: Angry Coates slams Australian Sports Minister