Member for Oxley, Melinda Pavey said $12.5 million is available in 2019/20 for new or upgraded facilities across sport and recreation, arts and culture, disaster readiness and community infrastructure.

"This is a great chance for local organisations to seek funding for a project to provide long-term tangible benefits to the community," she said.

"Infrastructure Grants can fund construction, alteration, renovation, completion and fit-out of buildings and community infrastructure.

"Types of projects funded include new or upgraded sports grounds, museums, theatres, homeless shelters and evacuation centres."

Since 2013, the NSW Government has funded over 350 community projects worth $82 million under Infrastructure Grants.

The grants are made possible by the Clubgrants Category 3 Fund which re-invests profits from registered clubs' gaming machines into community projects. Funding is available for infrastructure projects in three key areas:

Applications for the second round of funding for 2019/20 are open until Monday 16 December.