The commitment would allow Ballarat and District Nursing and Healthcare to expand its Sturt St premises.

State Opposition Leader Ted Baillieu said the contribution would help meet the growing needs of the region's largest home nursing provider.

"There's a $2.5 million project that needs to be undertaken to support the agency for the next 30 years," Mr Baillieu said.

"Half-a-million-dollars plus (has been) raised already. This additional money from government will go to completing this project and assisting this agency to do what it does best."

BDNH chairwoman Professor Sally Wellard said the building, located in Sturt St, was over-crowded and needed urgent redevelopment.

"We don't have adequate office space for the number of nurses," Professor Wellard said.

"They're on the road a lot of the time but when they come back there isn't the internet infrastructure in the building to be able to provide nurses with online support for their work."

Professor Wellard said the redevelopment would create more space for clients to attend podiatry services at the centre.

The health care provider will celebrate its centenary in April next year

Liberal candidate for Ballarat West Craig Coltman said funding the redevelopment was imperative for the future of the service.

"The increase in the population of Ballarat, combined with an expected prevalence of disease requiring nursing care ... will increase the demand for home nursing and support services in the district," Mr Coltman said.

BDNH provides a variety of services and operates 24 hours a day. It employs more than 100 staff.