Federal Labor has committed to an $18.3 million funding agreement for the South West Aboriginal Medical Service to build a dedicated Indigenous health hub in Bunbury.

The new facility would allow SWAMS to provide whole-of-life care for a new generation of mothers, children and youth in a culturally appropriate and welcoming setting.

WA Labor candidate for Forrest Bronwen English said this was an investment into the wellbeing of Aboriginal communities across the south west.

"Crucially, this is a project that's been designed and driven by Aboriginal Controlled Community Organisations," she said.

"The SWAMS HealthHUB will deliver a full suite of services, including mobile outreach, to promote health, resilient communities and close the gap in health outcomes in our region."

SWAMS executive officer Lesley Nelson said the hub was a long-held dream for Indigenous elders.

"We're carrying the torch for what's been a dream for our elders, we have to pick that up and take it beyond where we can take it to," she said.

"At the end of all this, it's bringing true a dream they had 25 years ago when they sat down and talked about making sure they got access to health care for their people."

The demand for health services in the south west has grown significantly, with SWAMS patient numbers growing 20 per cent from 2017 to 2020.

"The Aboriginal medical service was first set up as a coordinated care trial here in Bunbury to serve the local Aboriginal people here and plans have grown incredibly over that time," Ms Nelson said.

"In the last seven years, we now have nine clinics outside of Bunbury. Our workforce now has 140 staff.

"For us not to have modern facilities, it's detrimental to us going forward and being able to ensure that we can expand in other services we don't currently deliver."

Ms Nelson said funding would boost SWAMS' efforts to close the gap.

The hub would provide primary and community health services, Maternal and child health care, aged care and disability services.