A newly refurbished student recreation building was unveiled yesterday by Ballarat MHR Catherine King and University of Melbourne vice-chancellor Professor Glyn Davis.

The facility is stage one of a two stage $1.71 million upgrade thanks to the Federal Government's Voluntary Student Unionism Transition Fund.

The grant scheme has been in place for about 12 month and had the goal of providing additional student amenities.

The new building includes a games room, lounge and kitchen and is aimed at making life at the Creswick campus more comfortable for students who come from around Australia to continue their forestry studies.

The second stage of the project will include a new gymnasium and indoor sports venue as well as a general purpose activity space and social functions area.

"It is important for students to be able to relax and socialise in a safe environment," student union representative Anne Miehs said.

Ms King said it was important for students to feel at home and that they were an important part of the community.

She said the new open space amenities for students would play a fundamental role in enhancing the level of social inclusion within the campus.