Youngsters participating in organised sport will now be entitled to two $100 vouchers each year instead of one.
On Tuesday NSW Treasurer Dominic Perrottet announced a $40 million injection to expand the popular Active Kids program to include two vouchers per child from July 1.
"We know NSW families love Active Kids, with more than one million vouchers redeemed and $100 million saved in sport registration costs in the first 18 months of the program," Mr Perrottet said.
"These household savings have contributed to a spike in registrations across NSW, and it's girls that have had the biggest increase in Active Kids voucher downloads in 2019."
"By adding a second $100 voucher we hope to see parents being able to keep their kids active all year-round."
Minster for Sport John Sidoti said the expanded Active Kids program demonstrated the NSW Government's commitment to improving the health and wellbeing of children, through increased physical activity.
"We know that regular physical activity and exercise plays an important role in a child's development, and we want all kids to be healthy and happy," Mr Sidoti said.
"Just as the second Active Kids voucher provides even greater opportunity for children to participate in sport and active recreation, it reduces costs for hard working families."