Australian Association Press (AAP) will get $5 million from the federal government under its Public Interest News Gathering (PING) program.
The national newswire now running as a not for profit, after being dropped by owners Nine and News Corp, had been running a crowdfunding campaign to raise capital.
"This $5 million in funding will allow AAP to continue delivering its important news service for communities Australia-wide," says communications minister Paul Fletcher.
“It will also provide the newswire more opportunities to secure additional private investment to support its long-term sustainability.
"The AAP Newswire provides services to more than 250 regional news mastheads across Australia, covering public interest content on national, state and regional news."
The newswire's former owners publicly announced its closure in March this year saying AAP could no longer compete with free information on the internet.
AAP now owes its continuing existence to about 35 people, describing themselves as philanthropists and impact investors wanting to making a positive contribution to society.
The newswire is in the process of resetting its business model without its former big media owners News Corp and Nine Entertainment and the fees they paid to AAP each year.
Industry insiders say $10 million would be enough capital to ride out the next few years to a model where AAP stands on its own feet without the $15 million it used to have from the big shareholders.
How much was donated by the 35 philanthropists isn't known.
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