The Coalition Government will provide $750,000 to purchase and renovate the childhood home of former Prime Minister Bob Hawke.
The purchase will allow the protection of the property's heritage value, along with commemorating the late Mr Hawke's life and achievements.
Last month, SA Labor leader Peter Malinauskas wrote a letter to urge Prime Minister Scott Morrison to step in and buy Mr Hawke's childhood home.
Tatiara District Council mayor Graham Excell said it was good to see both parties working together to honour an influential figure in Australian politics.
With Bordertown being the birthplace for the former Prime Minister, Member for Barker Tony Pasin said conserving Hawke House was important for Australia's heritage and democratic history.
Mr Pasin also said the Coalition Government's decision to purchase the property will allow visitors to learn about the town that shaped Bob Hake into the eccentric leader he was.
"The acquisition and preservation of Bob Hawke's early childhood home at Bordertown will help to underscore the important role the township of Bordertown and the broader Tatiara played in shaping the extraordinary Australian that Bob Hawke became," Mr Pasin said.
"Very few Australians readily associate Bob Hawke with Bordertown or indeed South Australia despite the formative role South Australia and Bordertown played in his life."
Mr Pasin said the acquisition will open limitless opportunities for the community to showcase the former prime minister's life and draw tourists to the town.
"This acquisition presents an amazing opportunity for the community of Bordertown to create an iconic facility that will celebrate Bob Hawke's life and educate visitors regarding the significant role he played in the formation of post-war Australia," said Mr Pasin.
Hawke House will add to the homes of former Prime Ministers already preserved for the nation, including Ben Chifley's home in Bathurst, New South Wales; John Curtin's home in Cottesloe, Western Australia; and Joe and Enid Lyons' family homes in Stanley and Devonport, Tasmania.
The Australian Government will now work with the local Bordertown community and the National Trust of South Australia to upgrade Hawke House and ensure its heritage value is protected.
A $5 million sum will also be provided to the existing endowment fund of the General Sir John Monash Foundation to create an annual scholarship known as the Bob Hawke John Monash Scholar.
The scholars, chosen by the foundation, will study in any field deemed in the interests of the nation.
The aim will be to support, for up to three years, talented young Australians with ability and leadership potential to develop their skills at leading overseas universities.
Soon, all Australians will get the opportunity to understand and celebrate the incredible impact Bob Hawke had on politics in Australia.