Aboriginal and Torres Strait Island Legal Services were awarded $916,000 in funding to address an increased demand for services and to improve infrastructure such as information technology.

Community legal services received $1.5 million which will focus on assisting disadvantaged older Australians, family law matters including prevention of violence and early intervention and developing clinical legal education projects.

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The funding will also contribute to the establishment of a trial legal clinic for homeless persons in the ACT and funding to assist the Homeless Persons' Legal Clinic in Victoria.

"Legal assistance services are critical to effective early intervention by helping people resolve problems before they escalate and lead to entrenched disadvantage," McClelland said.