The winner of the $50,000 Arthur Guy Memorial Painting Prize was revealed at the Bendigo Art Gallery on Saturday, drawing attention from throughout Australia.

The artist's colourful abstract work `Three Lies' was selected from 41 shortlisted works to receive the $50,000, an unprecedented amount for a painting prize.

His painting is the second to be awarded the biennial prize, after Stieg Persson became inaugural winner in 2003, and will now become part of the Bendigo Art Gallery's collection.

In an emotional acceptance speech, the artist paid special tribute to regional galleries and art prizes as the starting point for most Australian artists, including himself.

Mr Frank paid tribute to regional art galleries and art prizes as the starting point for most Australian artists, including himself.

The $50,000 cash prize was awarded to Mr Frank during a ceremony at the Bendigo Art Gallery on Saturday.

Mr Frank grew up in the Hunter Valley and now lives in Queensland's Lockyer Valley.

He won his first art prize at the age of 15 and said it was regional galleries like Bendigo's that helped young artists on their way.

"When you look at the CVs of all Australian artists today, 99 per cent of them come from the country and regional centres," Mr Frank said.

"Professional galleries like Bendigo's are young people's first connection to the art world," he said.

"And it is only regional galleries that do take on things like this prize.

"Regional galleries, despite the pressure of survival, also have the freedom to develop."

Prize judge Rachel Kent said Mr Frank had explored more abstract modes in his art over the past two decades.

"In this work, pools of poured coloured varnish create a rich and tactile surface," Ms Kent said.

The prize was established when Allen Guy gave the Bendigo Art Gallery a donation in memory of his brother, who died during World War II.

Now 87, Allen was represented at Saturday's ceremony by his sons, Andrew and Richard, and daughter-in-law, Jane.