Bega MP Andrew Constance visited the iconic wharf to make the announcement in front of a group of rather elated residents.

It won't take long before the rest of the community can share in the joy, because the money is tied to NSW government COVID-19 stimulus grants and therefore a portion of it needs to be allocated this current financial year.

Mr Constance said the funding would support the replacement of piers, building upgrades, and upgrades to car parking and amenities at the site while supporting jobs and the local economy.

"Over the years we know how the wharf has some risks. In the right conditions, we could lose her," Mr Constance said, referencing both the threat of bushfires as well as East Coast Low storm surges.

In June 2016 the wharf was significantly damaged when strong seas and violent weather lifted it off its pylons.

While the council will need to go to tender for the work, it's understood the contractor who repaired that damage in 2016 - the cost of which was also reimbursed by the state government - would be in the running given their experience.

"This is about jobs as well as about the outcome," Mr Constance said.

"$2.13million of this restoration funding will be provided in 2020/21 followed by the remaining $4.97million in 2021/22 to provide a big boost for our region."

"Particularly after the fire [of March 2018], between the headland walk and the viewing platform this is an incredible community doing great things and this keeps things moving.

"This will make it a beautiful and safe structure for years to come."

Bega Valley Mayor Russell Fitzpatrick welcomed the news and said council would work quickly to get the ball rolling.

Cr Fitzpatrick said the funding supplied by the NSW Government will allow council as the Crown Land managers of this iconic site, to give it the restoration it deserves.

"We would have been unable to complete the works without the funding, leaving the wharf at risk of further damage," Cr Fitzpatrick said.

"Council are now able to get on with the project, give locals and visitors continued access without future safety concerns and restore the wharf as it deserves.

"The wharf upgrades will further complement the amazing Tathra Headland walking track and remain a strong drawcard for the town well into the future."

Residents at the announcement asked questions regarding access to the wharf, its cafe and museum while work was carried out. There were also requests over repurposing the timber from the wharf platform.

Both Cr Fitzpatrick and Mr Constance said they would certainly be discussions had with the successful tenderer.