The Federal Government will spend $750,000 to purchase and renovate the South Australian cottage where former prime minister Bob Hawke was born and grew up.

Key points: The property known as Hawke House is the birthplace of the former prime minister

The property known as Hawke House is the birthplace of the former prime minister The Federal Government will spend $750,000 to purchase and renovate the property

The Federal Government will spend $750,000 to purchase and renovate the property Prime Minister Scott Morrison says the home is a "significant part" of Australia's democratic history

Mr Hawke, who died earlier this year, was born at the home in Bordertown in South Australia's south-east in 1929.

The stone cottage on Farquhar Street was built in 1885 as a bank office and manager's residence before it was bought by the Congregational church.

Mr Hawke's father was Congregational minister in Bordertown from 1928 until 1935, and the property later became known as Hawke House.

In more recent times, the heritage-listed building was leased out to commercial tenants and was put on the market in 2016.

Baby Bob Hawke in a tin bath in the backyard of his Bordertown home. ( Supplied: Hawke family )

Prime Minister Scott Morrison announced the Federal Government would spend $750,000 to purchase and renovate the home, saying it was an important part of Australia's democratic history.

"Bob Hawke made an extraordinary contribution to Australian life and holds a special place in the hearts of Australians," Mr Morrison said in a statement.

"His childhood home is a significant part of our national story and preserving it will enable current and future generations to celebrate his life, achievements and substantial role in our democratic history.

"Australians loved him and he loved them back. Every Australian felt connected to him, regardless of their politics, and he was big enough that we entitled an era after him — the Hawke era."

Bob Hawke scholarship gets $5 million

The National Trust of South Australia will be involved in the restoration of the home, which joins a list of former prime ministerial properties already preserved for the nation, including Ben Chifley's Bathurst home and John Curtin's home in Cottesloe.

South Australian Labor leader Peter Malinauskas said he wanted the property to be made open to the public.

The stone cottage on Farquhar Street was built in 1885. ( Supplied: Tatiara District Council )

"A number of weeks ago, I wrote to the Prime Minister asking the Federal Government to acquire Hawke House," Mr Malinauskas said.

"This is a part of not just our state's history but our national history. Bob Hawke — the longest serving Labor Prime Minister the country has ever had — was a great reformer.

"His legacy deserves to be preserved, especially this very special South Australian connection."

The Federal Government has also committed $5 million to create an annual scholarship known as the Bob Hawke John Monash Scholar, through the General Sir John Monash Foundation.

The money will fund young scholars "in any field deemed in the interests of the nation" who wish to study overseas.