The funding will be directed to the Murray Primary Health Network and seeks to help reduce demand for ice and reduce addict-based crime by supporting local rehabilitation services.

The MPHN, which is due to begin providing services on July 1, stretches from Corryong to Mildura and south to Bendigo.

Ice-related issues in towns in Indi including Wangaratta have been well documented.

Indi liberal candidate Sophie Mirabella welcomed the announcement.

“Ice is ruining lives, destroying communities and does not discriminate,” she said.

“This money will provide much needed services to people in Indi who are grappling with ice addiction.

“Families in Indi are dealing with the fallout of this drug and many are concerned about a lack of available treatment and rehab services.”

The funding comes at a time when the Molyullah-based Odyssey House drug and alcohol rehabilitation centre will fall under the MPHN from July 1, 2017. 

Program manager Andrew Hick said the facility did a great job in the North East and needed all available ongoing funding.

"We are doing all the right things and demand far out-weighs what we can supply," he said.

"We've got between 100 and 110 on the books at the moment and the majority of people come to us from the North East.

"Clearly we hope we will get ongoing funding because the ice problem is huge.

"But we know arrangements are changing.

"Every bit helps at this point in time."

Indi Nationals candidate Marty Corboy said treatment delivery was traditionally the responsibility of state governments.

"Each community will require a different response to battle the scourge of ice and there is no one size fits all solution,” he said.

The funding is part of the Coalition's response to the National Ice Taskforce report which was handed down in December.