The Liberal senator for the ACT, Zed Seselja, announced an $11.4 million package to upgrade the 41-year-old arena, which has been closed to sporting and live entertainment events since 2020.

Senator Seselja told The Canberra Times the federal money was found after the 2022 budget but before the government entered caretaker mode, to fully fund the upgrade works.

"This is money that's delivered. And so this is something that obviously I've been working on with the Sports Minister and making representations to the Finance Minister as well," Senator Seselja said.

Senator Seselja said the new federal funding bypassed stalled negotiations with the ACT government, which he said was not "really willing to come to the table".

Mr Barr on Tuesday morning said the funding announcement was a "start".

"It's a pity it took a hotly contested election campaign for this belated acceptance of the Commonwealth's responsibility for maintaining their own asset," he said.

But the Chief Minister said the ACT government wanted to have a broader conversation about the future Australian Institute of Sport precinct, which takes up a large parcel of land in Bruce.

READ MORE:

Mr Barr told a Legislative Assembly inquiry in early March the arena would have a limited lifespan whether or not the federal government decided to sell the facility.

"[The ACT government] won't be buying a 40-year-old arena that's ultimately too small for our city's future needs," he said.

When the arena closed in June 2020, the ACT government accused the Morrison government of allowing the AIS Arena to deteriorate.

Work to revitalise the arena, which is presently being used as a mass vaccination clinic, is expected to begin within six months, and the AIS Arena is expected to reopen by the first half of next year, possibly sometime later this year.

Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content: