This year the initiative reflects Australia Post's commitment and focus on mental health, with an emphasis on supporting projects that help improve connection and mental wellbeing in local communities.

Australia Post Head of Community, Nicky Tracey said it is a challenging period for the not-for-profit sector, and while communities continue to show their resilience, the mental wellbeing of many Australians had been impacted due to bushfires, floods or the Coronavirus pandemic.

"Being part of a community and feeling a sense of belonging has become more important than ever before. Our Grants program aims to help strengthen the support network and relationships between individuals and their community which is greatly needed at this time," said Ms Tracey.

"We know that when people in communities connect, they naturally feel better - which will often improve mental health - which is why we want to support the organisations that are helping make this happen.

"Ultimately, when people look out for each other and talk openly about mental health - we can build stronger, more resilient communities."

The 2020 Australia Post Community Grants will support initiatives that:

In 2019 the Community Grants awarded almost $500,000 to 75 not-for-profit community organisations across Australia for the delivery of grassroots community projects, with the majority of recipients in rural and regional areas.

Eligible community organisations can apply for an Australia Post Community Grant for up to $10,000 via www.auspost.com.au/grants.

Applications close July 17 and all applicants will be notified of the outcome in October 2020.