The Port Campbell funding will go towards the project which will see shared pedestrian and traffic zones and upgraded streetscapes.
"The Morrison Government is delivering the services and infrastructure our communities deserve,” Mr Tehan said.
“We are backing these projects so local people have the facilities for the future, while creating jobs to boost our economic recovery.
“I have worked closely with local councils and community groups. It’s great to be part of a Government that will listen to and deliver for our community.”
More funding will also go towards the likes of the Red Rock Theatre and Lorne Sculpture Exhibition.