The local charity was announced as the recipient of the Southern Inland section of the program this week.

General Manager Tony McElhinney said the plan was to refurbish an old shed into an arts centre that would be used by both Challenge Southern Highlands people and the public.

"We are a community-based charity and this is one way we can give back to the community in return for supporting us. The community should be able to use it as much as possible," he said.

Mr McElhinney said staff used to do a lot of art, and sold cards through the Welby Garden Centre gift shop.

"We'd like to get back to doing that, not only for the staff, but also because it's a way of bringing the community back to us. It makes it personal."

The grant will go towards refurbishing a shed currently used for storage.

"We like to give the guys here experiences they would otherwise miss out on - to add a bit more to their life. Creating an art space is an extension of that," Mr McElhinney said.

The Our Neighbourhood Trust is a public charitable trust set up by Australia Post to make it possible for all Australians to play a role in helping those less fortunate.

A spokesman for Australia Post said the grant would create an arts space for local people with a disability, providing them with an artistic outlet as well as encouraging them to become part of the wider local arts community.

Photo: Tony McElhinnery, back left, with Bill, Ali, Julianne, Monique, Louise, Donna and Tash in the shed that will soon be transformed into an arts space. Photo By Jen Walker