Almost 100 Victorians on average were turned away from homelessness services each day last year, a report by the Productivity Commission has found.

The annual Report on Government Services revealed 35 per cent of Victorians seeking accomodation, around 15,000 people in total, could not be housed because of a lack of facilities.

The figures revealed 47,708 people who experienced homelessness in 2013-14 sought assistance, an increase on the previous year.

Almost 5 per cent of Victorians experienced repeated periods of homelessness, just under the national average.

The Council to Homeless Persons told the ABC the statistics were extremely worrying because it was already expecting an increase in demand this year.

"Rising unemployment and indeed low rates of income support like for people on Newstart mean that we have a perfect storm for homelessness and we do expect demand to continue to increase," the council's chief executive, Sarah Toohey, said.

"We've also seen significant demand from women escaping family violence and with the royal commission this year. We do expect to see that increasing."

Funding to be considered in next budget: Government

Ms Toohey said the Federal Government needed to extend its funding agreement for services, made through the National Partnership Agreement on Homelessness, which is due to expire in July.

"That is around $115 million worth of funding to homelessness services across the country and $23 million to homelessness funding here in Victoria," she said.

"Without that funding and without certainty around that funding, homelessness services are really trying to fight the fight against homelessness with one hand tied behind their back."

She said if there was no commitment from the Government by March, some organisations may be forced to lay off staff.

"That's when services need to start talking to staff about redundancies, they need to start winding down programs if that funding is not going to be forthcoming."

Federal Social Services Minister Scott Morrison said short-term funding arrangements would be considered in the next budget, but did not give an exact time frame.

He said the $115 million invested into the partnership was matched by state and territory governments, who were responsible for determining which services should be funded.

Mr Morrison said the Government had initiated a White Paper on Reform of the Federation that would examine issues and policy settings affecting housing assistance and homelessness services.

"In the short-term, future arrangements for the National Partnership Agreement on Homelessness will be considered in the context of the 2015-16 budget, while longer-term arrangements for housing assistance and homelessness services will be considered in the context of the white paper."