Local MPs Annabelle Cleeland and Sam Birrell are calling for Federal Government funding to refurbish and expand the Seymour RSL.
Local veterans built the original 1940s building after World War I.
However, the lack of accessibility for disabled individuals is a concern.
Seymour RSL president Matt McLaughlin said a modern, family-friendly facility would help the RSL cater to the needs of younger veterans.
“Our toilets do not have disabled access and do not meet requirements,’’ he said.
“We cannot support our veterans if we don’t have the space or services.’’
The project would include extending the existing meeting hall and function area, including a family-friendly playground, new toilet facilities and a commemorative mural.
Mr Birrell, the Federal Member for Nicholls, has been working with the Seymour RSL on the expansion for a long time.
“An application for funding has been made and we are hopeful for its success, as it is well deserved and needed for those hard-working people at the RSL,” Mr Birrell said.
Ms Cleeland, the state Member for Euroa, said the Veteran Well-being Grants Program would provide federal funding.
“It is an extremely important part of the local community, offering a central location in town for veterans and their families to gather,” she said.
“By helping connect veterans to services, providing them with a way to develop social networks, and providing practical support, the Seymour RSL is offering a service that cannot be replaced.”