The ACT government has announced plans to invest $2.6 million with homelessness service providers in its upcoming 2020-2021 budget.

It follows a recent Productivity Commission report which found more than a third of Canberrans who experienced homelessness in 2019-2020 did not receive accommodation services.

The commission also revealed ACT had the second highest rate of repeat homelessness nationally at 6.6 per cent in 2019-2020.