UPDATE: AFL Wimmera-Mallee regional manager Bruce Petering welcomed the announcement and said it was a step in the right direction for country football.
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"It is an exciting time when the peak body can see that cutting costs for clubs is a really important thing to do," he said.
"Directly, from next year the affiliation fees directly to AFL Victoria will be waved and amounts to a considerable amount of money when you look at the region we're in."
The AFL Wimmera-Mallee is predicted to save $80,237.
"Affiliation is a cost clubs have to bear right now so the funding has to be a good thing for them," Mr Petering said.
"It is a savings. We've worked it out to be about for every $1000 needed it takes about 80-100 hours of labour cooking savs or sausages.
"It's another thing the volunteers don't have to do as much of which clubs have been telling us volunteer burnout and the cost of the game are issues."
AFL Wimmera-Mallee umpires manager Howard Schier said the announcement of the removal of umpire registration fees certainly was an incentive when trying to attract more umpires.
EARLIER: GRASSROOTS football in the Wimmera and Mallee will save thousands as AFL Victoria actions an $18 million rescue plan to save struggling country clubs.
The AFL will dump its affiliation fees in the multi-million dollar package.
It means Horsham District and Wimmera league clubs will save an average of $4011 in fees.
The Mail-Times understands affiliation fees help to fund game development officers and regional administration centres.
The three-year funding announcement, which will be rolled out from 2020 to 2022, marks the largest investment in Victorian country football in more than two decades.
Head of AFL Victoria, Rick Bell, described the move as "really positive".
"It's recognising the significance of country and community footy," Mr Bell said.
"What this means is that the AFL is funding these programs instead."
Mr Bell urged clubs to pass on the savings to players and members.
"What we'd really like to see is clubs pass it down to parents," he said.
"We've been out at Bacchus Marsh this morning for the announcement and their junior president said it will help as costs are rising across everything.
"As a result of the announcement, they will be able to maintain their current fees structure."
In a further move to make football more affordable, the AFL has scrapped umpire registration fees and slashed the cost of club apparel.
Volunteers have received a reprieve in the package, with $950,000 dedicated to help them run clubs.
This will include the launch of a digital portal and face-to-face support system and increased resourcing of region administration centres.
AFL Western District chairman Gerard Lucas hailed the move as beneficial for clubs across the region.
"It's a really positive move for clubs across the region," Lucas said. "I would hope that clubs can find use for their savings in their operations to support volunteers."
Two integrity officers will be hired to focus on policy development and investigate matters in safeguarding children, vilification and social media breaches.
More than $300,000 has been dedicated to the introduction of Village Hubs which will be launched to align local schools, community clubs and AFL clubs.