The New South Wales Premier, Morris Iemma, says his government will contribute 20 million dollars to help stage a gathering of the world's Catholic youth in Sydney.
The package will help cover transport, security and policing costs, as well as covering medical services and venues.
Pope Benedict will today hold a special mass to celebrate Sydney's hosting of the 2008 World Youth Day.
Mr Iemma is in Rome for the service, and says the event will put Sydney in the spot-light, attracting half a million young people from around the world.