Gender dysphoria is when people identify with a gender other than their birth-assigned gender, and want to make their body match their affirmed gender, either through counselling or transitioning.

The $6.4 million in new funding will be allocated specifically to Monash Health- an agency that is struggling to treat the one hundred-plus patients who seek out its services every year.

Last year's budget gave additional funding to the Royal Children's Hospital for gender dysphoria treatment for children aged 5 to 17, which they say doubled their capacity and halved their waiting list.

The funding will help Monash Health expand their gender dysphoria clinic and deliver a more comprehensive multidisciplinary psychiatric and psychological assessment service, additional counselling services plus education and training to build clinical care for transgender Victorians.

The Government aim to roll out gender dysphoria services in the new Pride Centre, once it's up and running.