The Victorian Government will spend $109 million tackling homelessness across the state over the next five years.

The package will target rough sleepers, young people and veterans, with the aim of helping 19,000 people.

More than $60 million will be spent on building or developing 120 housing units and providing other accommodation, including for people with severe mental illness.

The Government will also spend $10.1 million helping young people under the age of 21 with board payments, housing subsidies and leasing arrangements.

Premier Daniel Andrews said the package would help Victorians doing it tough.

"It focuses on the basics — the fundamental human right to shelter and the assistance you need to get through those tough times and back on your feet," he said.

Focus on support, stability, regular accommodation

Housing Minister Martin Foley said every Victorian deserved to have a roof over their head.

"Over the next five years, it is our expectation that this package will affect 19,000 Victorians who are currently either rough sleeping or at risk of homelessness," he said.

"That's a figure that the world's most liveable city needs to really ponder — that some people can't afford to live in it. And this package is all about giving those people an opportunity for a better life."

Heath Davis, who has spent some time on the street after experiencing domestic violence, said having to constantly move around made life difficult.

"If I had that [regular accommodation], I would probably have finished my diploma of community services — which I finished this week — four years ago," he said.

"I would have had the support and the stability. My experience of these [boarding] houses is that you'd go in and someone in there just wouldn't like you.

"They don't like you, they kick you out."

A survey by the City of Melbourne in June found the number of people sleeping on Melbourne's streets had increased 74 per cent over two years.

The StreetCount survey recorded 247 people sleeping rough on Melbourne's streets on the morning of June 7 — a substantial increase on the 142 people recorded at the same time in 2014.