South Australia will have a new arts academy, part of a $9 million boost to the arts sector under federal Labor.

Labor Senator Penny Wong made the announcement on Sunday, labelling South Australia as the festival state.

"The arts matters because they talk to us about who we are," Ms Wong said.

"A creative Australia is more vibrant, more diverse and looks to the future."

Labor has promised $6 million to support new initiatives as part of the WOMADelaide Festival, including the new academy.

WOMADelaide Director Ian Scobie said it would be a training and development program for aspiring musicians.

"Musicians will be drawn from across Australia and from a range of diverse backgrounds," Mr Scobie said.

"They will be mentored by professional musicians, such as Felix Riebl from The Cat Empire.

"They will learn what's required to perform in front of a major festival audience and then use the WOMAD international network and touring them overseas.

"It's a really exciting initiative."

WOMADelaide is a four-day arts, music and dance festival.

It celebrates cultural and creative diversity.

It has been held in Adelaide for more than 25 years.

$3 million will also be funded to complete the redevelopment of Her Majesty's Theatre in Adelaide.

The theatre is currently undergoing a major redevelopment.

The majority of the funding has been secured by the state government.

It was the city's second largest venue and held popular comedy, musical and arts shows.