The funding, announced on Sunday, will be given to the Leukaemia Foundation for care across people's diagnosis, treatment and recovery, as well as end-of-life.

Blood cancers, including leukaemia, lymphoma and myeloma, are estimated to account for more than one in 10 cancer deaths in Australia this year.

The number of blood cancers diagnosed each year is on the rise, from around 12,500 in 2010 to an estimated 17,300 in 2020.

Although survival rates are improving, it is estimated more than 5600 people will die from blood cancer this year.

The funding, part of the 2020/21 federal budget, is on top of $150,000 to establish an expert Blood Cancer Taskforce which has developed a national strategic action plan.

"Throughout the Blood Cancer Awareness Month of September, there is no better time to shine a light on the tireless work of the Leukaemia Foundation," Health Minister Greg Hunt said.

The investment will deliver care pathways for patients and enable the taskforce to oversee the program until the end of next year, the federal government says.

Australian Associated Press