The federal government has pledged $115 million to continue homelessness funding for another year.
The boost to the National Partnership Agreement on Homelessness will mean around 180 homelessness services across the nation will be able to continue to provide services until the 2014-15 financial year.
The decision gives certainty to the social services sector which had lobbied the government because funding was due to lapse on June 30.
It also comes a month earlier than Prime Minster Tony Abbott’s promise that funding certainty would be provided on budget night.
Social Services Minister Kevin Andrews on Sunday said the government will consider long-term arrangements on housing policy over the next year with talks with the sector and the states and territories.
“On any given night, more than 105,000 Australians are homeless, so it’s important for the government to provide assurance to the services supporting these people,” Mr Andrews said in a statement.
If the state and territory governments add their equal share of $115 million to the agreement, there will be $230 million for homelessness services in Australia for the next financial year, Mr Andrews said.