Australia's financial counselling services will immediately be reviewed by the federal government after the banking royal commission found it would be worthwhile considering the best way to fund their support.
Treasurer Josh Frydenberg has announced the review on Thursday, to focus on how the services - which help people experiencing money woes - are co-ordinated and funded.
The review will specifically consider gaps and overlaps in current services and whether funding models are up to scratch.
"The government recognises that it is a vital service used by thousands of Australians every year," Mr Frydenberg said.
"This review is a chance to increase predictability and stability in funding for financial counselling, as well as consider whether funding sources can be broadened."
Banking royal commissioner Kenneth Hayne QC's final report was handed down on Monday, with 76 recommendations and scathing criticisms of industry players.
A financial counselling review was not among the recommendations.
But Commissioner Hayne did suggest it would worthwhile considering how such support services can be funded to ensure stability.
"The desirability of predictable and stable funding for the legal assistance sector and financial counselling services is clear and how this may best be delivered is worthy of careful consideration," he said.
Mr Frydenberg said the review shows the government is going beyond its vow to take action on all of Commissioner Hayne's recommendations.
It has the support of the sector's peak body, Financial Counselling Australia.
"We welcome the review into the capacity of existing services to meet growing demand, as well as the adequacy and source of future funding," chief executive Fiona Guthrie said.
The Department of Social Services currently provides funding for financial counselling services across Australia, to the tune of $64.2 million over four-and-a-half years.
But the treasurer said the services often face inconsistent and short-term grant funding, which comes amid high demand.
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