SYDNEY - AUSTRALIAN Prime Minister Kevin Rudd on Sunday committed A$1.2 billion (S$1.19 billion) in funding to tackle homelessness, a plan which he said would stimulate the economy as well as providing new houses.

Unveiling a new 'white paper' policy document on the issue just a few days before Christmas, Mr Rudd said the plan was to halve homelessness by 2020, and provide accommodation to all people sleeping rough if they sought it.

Mr Rudd called it a 'once in a generation opportunity' to tackle the problem and said the longer-term aim would be to try to find ways to stop people becoming homeless in the first place.

Two thirds of the A$1.2 billion is to be provided over the next four years for support services and one-third will be provided over the next two years for new 'social housing' for homeless people.

Some 105,000 Australians are homeless in Australia, Mr Rudd said in a joint statement with Housing Minister Tanya Plibersek.

The plan includes 4,200 new homes for Aboriginal Australians in remote communities and improvements to another 4,800 Aboriginal homes.

Mr Rudd said it was part of a A$15.1 billion stimulus package agreed with Australia's state governments under a combined forum known as the Council of Australian Governments 'that will stimulate the economy and generate up to 133,000 jobs over coming years'.

Tackling the issue was an important commitment made by Mr Rudd in the campaign for last year's election, in which he soundly defeated conservative predecessor John Howard.

'Reducing homelessness is a shared responsibility that will take a sustained financial and reform effort by all levels of government, business, charities and the community,' he said in the statement. -- REUTERS