Member for Calare, Andrew Gee, was in Bathurst on Tuesday to announce the funding.

Mr Gee said the $500,000 is being allocated to Bathurst Regional Council for the Bathurst Aerodrome Taxiway Modifications Project under the Australian Government's Regional Airports Program.

The proposed program of works includes construction of a new taxiway, flood management works and taxiway lighting. These upgrades will enhance the aerodrome's safety and workability.

Mr Gee said the upgrade will enable aircraft to land and leave the aerodrome more efficiently, especially during peak use periods, like the Bathurst races, when planes are trying to land every two to three minutes.

"When Bathurst holds its major events, the airport is absolutely packed," Mr Gee said.

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"This funding will enhance the airport's capacity to handle aircraft movements through a new taxiway, and also improve safety through vital flood management works and taxiway lighting.

"It's a crucial investment in the future of the airport but also for the Bathurst region and follows $2.5 million in funding that the Australian Government has already given to the airport," he added.

Mayor of Bathurst, Bobby Bourke welcomed the funding saying it was an opportunity to do much needed work at the aerodrome.

"Badgerys Creek airport is really going ahead, so there will be more people coming out here.

"Council needs to be prepared for this... the airport is just as important as the railway coming in and out of the city.

"We have great bus and rail services, we also need to make sure airport is up to par."

Cr Bourke said the airport had lacked attention for a couple of years.

"Working with Andrew Gee we've been able to talk with him about what's needed out here, and now with the stimulus package we can do that work.

"This is not something we can sit back and wait another four or five years to do."

Cr Bourke said while most people catch a train or drive to Sydney, we can't under estimate how vital the aerodrome is to the city.

"It's used a lot when we have big events, and as a city we're looking to hold bigger and better events so upgrades like this are vital."