The funding would be split into $5m to build the physical infrastructure, and $3m for a linear accelerator, a specialised machine that is used to direct high-energy X-rays or electrons at a patient's tumour.

Ms Phillips said she was "delighted" to make the announcement.

"We know that if you need treatment for cancer you have to travel very long distances, either to Canberra or Sydney," she said.

"It's been like that for many, many years - it's not fair on cancer patients.

"We should have equitable access to cancer treatment, not only for patients, but also for their families.

"It's absolutely imperative that cancer patients have good access to cancer treatment locally - it's one of the many issues local people have raised with me over the years."

NSW Labor Leader Chris Minns said the announcement was a "key stone" for the Gilmore electorate.

"The community down here deserves their fair share of infrastructure," he said. "This is an important piece of the puzzle when it comes to the health and welfare of the people of the South Coast.

"Upwards of 2000 people could be diagnosed with cancer every year in the Eurobodalla Shire, and they have had to travel up to three-and-a-half hours to get life saving treatment to battle this debilitating illness.

"The health outcomes for regional communities are worse than metropolitan areas like Sydney, like Wollongong and like Newcastle, and we must do better.

"The way to do better is to make sure the critical capital infrastructure is put in place on day one.

"The centre, once it's built, will treat 700 people every year - it needs support and coordination from the NSW Government and it needs capital infrastructure from the federal government."

Shadow State Minister for Health, Ryan Park, said he'd heard many stories of regional people's struggles with healthcare during his tenure.

"I've been fortunate to sit with so many people over the past two years and hear their stories about the sheer challenges they face, the disruption to their lives, and the stress they face on top of their diagnosis is simply heartbreaking," he said.

"That's why when there was an opportunity to get this right, we've all advocated."

Cathie Hurst is a cancer patient from the Eurobodalla Shire. She said she was "thrilled" to hear of Labor's commitment.

"If only it had been earlier, I could have avoided driving up to Sydney to spend a week having radiation treatment, coming home on weekends, and then going back to do it again the next week," she said.

"I was in the lucky position of being able to travel by plane, but a lot of people out there can't.

"They're young parents with children they have to leave behind, and they're devastated because they've just been told they have cancer.

"15 minutes is all radiation takes for most people, if you could do 15 minutes a day and then go home, how much easier would that be?

"The future looks bright if we get this money and the services we need here."

Fiona Phillips later confirmed Labor would be looking at a Medicare License for the proposed facility at a later date.