As many as 242,500 people might use it every year by the end of the decade, up from 26,500 now, according to a new City of Greater Bendigo planning application lodged with town planners.

The council has upped its estimates for the number of people expected to use the airport by 2030 based on changing assumptions about Bendigo's population growth and the success of Qantas' flights to Sydney, manager of business services Ben Devanny said.

"When you look at that 10-year horizon and you think about Sydney flights post-COVID-19 and the possibility of routes to other markets, those numbers start to add up quickly," he said.

More news: A locked down holiday, then two weeks in quarantine for Bendigo couple

"These numbers are certainly possible and this is a case Bendigo can make to airlines and others if we can keep showing that people are going to keep using services."

The council was currently exploring the potential for flights into Mildura, Hobart, Canberra and Adelaide but it was too early to say whether those plans would eventuate, Mr Devanny said.

A new terminal is needed to meet security and safety requirements for the airport if it is to handle more than 30,000 passengers each year.

The planning application calls for the current terminal and extra car spaces, as well as a new administrative building and undefined works linked to a business park previously earmarked for the site.

The terminal would include a waiting area, departure lounge, baggage collection area, café, additional toilets and spaces dedicated to safety and security infrastructure.

"The resulting building will be light-filled and comfortable and has been designed with a view to enhancing customer experience, safety and amenity," the council said in the planning application.

The document is the latest development in long-term plans to make sure terminal plans are shovel-ready.

The council has lodged the application with its own planning department as it awaits a separate announcement on whether it has secured $4.4 million in federal funds.

That could happen as soon as in the next few weeks, depending on federal government processes.

A decision could end years of uncertainty over the project.

The council has been bidding for federal grant funding since 2017.

It has become the last piece of the puzzle for the council's dreams of expanding the airport.

The state government previously earmarked roughly $4.5 million and the council about $1 million.

Earlier this year, regional development minister Mary-Anne Thomas wrote to her federal counterpart asking for certainty.

More news: Bendigo man jailed for defrauding the National Disability Insurance Agency

Ms Thomas wrote that her government had already given the council extra time to get funding from federal sources.

She "required" certainty by the end of May and flagged the possibility of looking for private investment.

The deadline came and went but in the meantime the council applied for a fresh round of federal grant funding.

Our journalists work hard to provide local, up-to-date news to the community. This is how you can access our trusted content: