Beyond Housing praised the $150 million package which will provide people in emergency hotel accommodation tailored mental health, drug and alcohol and family violence support, which will continue once they move into long-term housing.

The funding will also support Beyond Housing's Private Rental Assistance Program which helps people with their bond on private rentals.

Beyond Housing's chief executive Celia Adams said it came as a relief as the initial funding had been due to expire at the end of the month.

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"We know the people that Beyond Housing have been supporting to stay in caravan parks and motels have been anxious about what comes after their stay ends," she said.

"This announcement will help us to keep people in crisis accommodation, funds a much-needed level of wrap around support and provides a financial pathway into private rental for some of these households."

Ms Adams called on the state and federal government to build more affordable and social housing.

She said subsiding private rentals through head leasing, where the government rents from the landlord and on-rents it to low income tenants, was not a sustainable long-term solution.

"Social housing is perfect economic stimulus in this time of economic downturn," she said.