The youth centre will be expanded to make way for more services for Aboriginal and Torres Strait Islander children, young people and families.

Aboriginal and Torres Strait Islander Affairs Minister Rachel Stephen-Smith said the ACT government had worked with Gugan Gulwan on a new design for the facility.

"This co-design process has been absolutely vital to ensure that we deliver a purpose-built facility for Gugan Gulwan that is not only built-for-purpose to fit their functional needs but is also a culturally safe space for Aboriginal and Torres Strait Islander families in the ACT," Ms Stephen-Smith said.

The ACT government has committed $15 million towards the new facility but Ms Stephen-Smith said this would increase, especially as there had been an escalation in construction costs.

The development application has been lodged and it is expected to go out for public consultation in the coming weeks.

Once the application is approved, there will be a request for the construction tender and Ms Stephen-Smith said the government hoped to engage with Aboriginal and Torres Strait Islander companies in the process.

Gugan Gulwan has operated out of its current building since 2001.

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The new building will have a reception area, staff workplaces, homework spaces, function and exhibition spaces, art and music facilities and play areas.

Gugan Gulwan Aboriginal Youth Corporation executive director Kim Davison said it was exciting for the project to get to this stage.

"We're just going to have so much more room to run our marvelous programs, such as a music program," she said.

"We can also have more meeting rooms where families can come in and have their privacy, but overall, they're building that our community, our young people in our community can be extremely proud of."

Gugan Gulwan is operating out of the Erindale Business Park while the redevelopment is underway.

Ms Stephen-Smith said it was hoped the new building would be ready by April 2024.

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