Principal Kevin Lewis said this will further allow students to have access to the same learning opportunities that are available in the cities.

"The new Performing Arts Centre will give students the best opportunities to succeed, not only in the classroom but also in life," he said.

"A number of our students in recent years have achieved their best HSC subject result in Creative Arts. And to have a centre for the arts will benefit our students."

Member for Oxley Melinda Pavey made the funding announcement today and said it's great to see funding allocated to local projects.

"The Building Grants Assistance Scheme helps Independent and Catholic schools with the greatest need build, extend, or upgrade their facilities to provide more student places in growing communities," she said.

"Adding value to education has always been a goal and enhancing the school facilities in the Macleay is a great project.

"All students should be able to have access to more cultural and performing art opportunities, and this will give students at St Paul's a chance to expand their leaning."

Mrs Pavey said she has been working hard to secure funding for local projects during the past few months.

"This wouldn't be possible without the grant applications from local groups. I couldn't ask for a more supportive community and I'm proud to be able to secure funding for local projects like this one."

This is the first stage of upgrades to facilities at St Paul's College, with plans to upgrade the science buildings, library and staff facilities in the future.

"This is just stage one of four and will help students excel in their learning," Mr Lewis said.

"We always want to work with the community and will be encouraging the performing arts hall to be used for community events and provide opportunities outside of school hours because it's important to us to be a part of the community."

Planning for the upgrade to the hall and construction of the sports centre is well underway, with construction to begin in 2021.