Prime Minister Julia Gillard announced on Friday during a visit to Macquarie Fields in Sydney the availability of $40 million new grants intended to fund youth outreach and intervention programmes.

The fund is financed from proceeds of crimes that were confiscated by authorities. The bulk or $30 million will be handed over the local councils and community groups that will run youth crime prevention projects, purchase CCTV cameras and improve lighting in public areas.

About $5 million is allotted for 150 police youth clubs across Australia and the remaining $5 million will go to Youth Off the Streets, an outreach programme initiated by Fr Chris Riley which started in Sydney's southwest. As a result of his programme, crime in Macquarie Fields plummeted 40 per cent since the programme was implemented.

Home Affairs Minister Jason Clare, who joined Ms Gillard in unveiling the fund, said the initiative is in response to Australian voters seeking a strong economy, good education system, reliable local hospitals and safe streets.

The government will accept applications for grants in May, while the groups which would be approved would be announced in June or July.

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