Almost half a billion dollars will go to the publicly-owned corporation rolling out Australia's NBN to better connect rural and regional areas.
The $480 million for NBN Co will permit increased data allowances and products for about 300,000 premises in the coming weeks, with further upgrades to follow.
The funds to upgrade the fixed-wireless network will mean faster internet and better mobile phone coverage, Communications Minister Michelle Rowland said on Monday.
"Our plan will deliver tangible benefits to regional Australians, by improving safety, enhancing connectivity and increasing productivity through cutting-edge broadband connections," she added.
Labor promised to boost broadband and mobile coverage in regional Australia during the federal election campaign, with customers being able to access speeds of 100 megabits per second, and 85 per cent able to access 250 mbps.
Peak-hour speeds of at least 50 mbps have also been promised, with Labor's plan estimated to benefit 755,000 premises.
Fixed wireless will also cover a further 120,000 satellite-only premises.
