For Berkeley Public this will mean both parents and students will be able to attend indoor functions at the school for the first time.

At present, the school's 340 students cram into two adjoining classrooms for assemblies and there is no room for anyone else.

Principal Jan Hagan had submitted 18 separate applications to the Government after hearing about Prime Minister Kevin Rudd's school spending spree. Leftover cash from the hall will be spent on a list of other maintenance jobs.

"I just couldn't let a wonderful opportunity like this go past," Ms Hagan said.

Berkeley's $2.5 million grant comes on top of $150,000 provided by the Federal Government last month for painting and upgrades.

Other big winners in round one of the Primary Schools for the 21st Century stimulus initiative include The Illawarra Grammar School ($2.5 million for a multi-purpose hall), Unanderra Public School ($3 million for classrooms) and Saints Peter and Paul Catholic Primary School at Kiama ($2.5 million for hall and classrooms).

All up, the project will see $12.4 billion spent on primary schools across Australia through three rounds of funding.

Federal Education Minister Julia Gillard said government schools would receive 69.7 per cent of the total funding, Catholic schools 19.6 per cent and independent schools the rest.

It was the Government's intention that all Australian primary schools would receive some funding, Ms Gillard said.