Source: The Melbourne Age [Dewi Cooke]

VICTORIA has secured $245 million in federal money to support an extra 8000 people with disabilities living in the state.

State and territory disability ministers met yesterday in Sydney with federal Community Services Minister Jenny Macklin and Bill Shorten, the parliamentary secretary for disabilities and children's services, to decide how the Government's $1 billion disability election promise would be spent.

The states and territories agreed to contribute an extra $900 million to the total funding pool, giving Victoria a total share of $478 million over four years including this year's state budget allocation of $233 million.

Victorian Community Services Minister Lisa Neville said the additional funding, on top of the $143 million Victoria receives this year through the existing Commonwealth, State and Territory Disability Agreement, would mean 8898 additional services to help more than 8000 people.

The funding would pay for more than 7000 individual support packages, 1650 cases of respite care and 70 extra supported accommodation places.

"Everyone today acknowledged that clearly this isn't the end game but we've taken a huge stride forward," Ms Neville said.

Australian Institute of Health and Welfare figures point to high unmet demand for support for people with disabilities across the country. The Victorian Government estimates a 5% increase in demand each year.

The Federal Government said nationally the extra funding was expected to provide an additional 24,500 services.

Disability advocates welcomed the announcement.

"It gives people hope," Commonwealth, State and Territory Disability Agreement Alliance convener Sue Harris said.

The money, Mr Shorten said, was a first step and "no one thinks it's anything more than a downpayment".