Environment Minister Tanya Plibersek has confirmed the new Labor government will spend $3 million on a Hunter breeding program to help protect koalas from extinction.
Ms Plibersek officially opened Port Stephens Koala Hospital on Thursday and made good on an election promise to help fund the first year of the five-year program.
The hospital is partnering with University of Newcastle and Taronga Conservation Society on the $14.6 million project.
Koala hospital president Ron Land said the money would help create a bio bank of frozen koala sperm.
"The aim is to protect the species in the future from climate change-driven changes to habitat and man-made and natural disasters," he said.
"If numbers continue to plummet, Taronga Conservation Society will have an ever-expanding bio bank for future breeding programs."
Mr Land said the money would help pay for veterinarians and infrastructure at the hospital.
Ms Plibersek said climate change, disease and habitat loss had caused a "drastic decline in population numbers of koalas", which are now listed as endangered in some states, including NSW.
The government has committed $75 million to koala conservation in the next four years.
"I am excited to be opening the Port Stephens Koala Hospital and to see first-hand the work that is being done to protect and revive this iconic species," Ms Plibersek said.
"It's hard to imagine Australia without koalas. But, because of habitat destruction, climate change and disease, they're at genuine risk of extinction."
Ms Plibersek last month released the State of the Environment Report, which showed the number of threatened ecological communities in Australia had grown by 20 per cent in five years.
The number of threatened species had grown by almost 10 per cent.
"The Australian government is determined to protect Australian species from the ongoing threat of extinction," she said.
"That's why we've committed $224.5 million to establish the Saving Native Species Program that will boost protection for native species, including the koala, combat invasive species and improve conservation planning."
The 2019-2020 Black Summer bushfires affected 3.7 million hectares of koala habitat on Australia's east coast.
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