Prime Minister Kevin Rudd has announced a $10m project to help prevent those with mental health problems from becoming homeless.
The cash will fund a team of 36 personal mentors - expected to be in place by the middle of the year - to provide help and support for the mentally ill.
By providing a link with clinical, health and social services, it is hoped the mentors will be able to step in before those at risk are left with nowhere to live.
"Mental illness is a huge cause of people sleeping rough," explained Mr Rudd. "That's how they end up on the streets."
The PM has appealed for Opposition Leader Tony Abbott to take a bipartisan approach and back the scheme, insisting it was "a question of decency".
Target to halve homelessness
"We are dead set determined to meet our target of halving homelessness by 2020," he said.
Mr Rudd admitted that was "a hard objective to realise", but insisited it was "something any decent government should do".
He said the project would help those with mental health problems "live more independent and satisfying lives" and not end up sleeping rough.
More than 100,000 people were classified as homeless when Labor came to power in 2007.
Mr Rudd says that number is likely to have blown out since because of the global financial crisis, but insists the government is making inroads to meet its target.
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