The foundations have been laid for a multi-purpose block at Calrossy Anglican School's William Cowper campus and the work is "well under way".

Principal David Smith said this stage of building had "a whole lot of symbolism".

"Schools are foundations for good kids and good communities," he said.

"Where we have good teaching and learning, where we have a good culture and a good school, it contributes to society."

The new building will have design and technology classrooms, four science labs, dance and drama space, general classrooms and amenities.

Mr Smith said it would "re-energise learning in years 7, 8, and 9 - make it exciting".

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"In a lot of schools, they're the missing years; they're 'boring'," he said.

"We're well-known for doing a good job with our senior students, who do really, really well.

"This will enable us to customise that campus for years 7, 8 and 9."

The $4.1 million project should be finished by the end of the year, for use in 2021.

Given that "school fees are a pressure at the moment" for many families, Mr Smith said they had not and would not rise to cover the cost.

The money has come from a federal grant of about $950,000, surplus funds and a $100,000 donation from the Calrossy Anglican School Foundation.

The latter was established only a year ago at the school's centenary, and chairwoman Karen Madirazza said it was "very exciting" to see the project take shape.

Mr Smith said the school had contracted local firms including architects Urban & Abode, builders PJ Truman Constructions and engineers GHD "because we believe as a business we need to invest into the town".