The ACT Government will waive the $2.5 million loan provided to build the all-abilities playground on the shores of Lake Burley Griffin allowing Boundless Canberra to expand the facility.
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Boundless Canberra Board Member Kristen Connell said converting the loan into a grant would allow all future fundraising to go towards new equipment for Canberra's first all-abilities playground.
"This loan allowed us to begin building the playground and complete stage one while we were still raising donations from the community," she said.
"Providing a space where all children can play and have fun has to be one of the key foundations of an inclusive society."
Chief Minister Andrew Barr said he hoped the organisation's future fundraising went towards providing shade and a social enterprise kiosk at the playground to provide employment opportunities for people with disability.
"I have heard many families note that the lack of sufficient shade is a concern, and by removing the need to repay the loan, Boundless will be able to put fundraising efforts into new infrastructure," he said.
Mr Barr said Boundless would also be able to seek expressions of interest to develop its business model.
Ms Connell said the playground had been "overwhelmingly popular" with many families since opening last October.
