The money will be used to expand and/or create 18 separate services to support children displaced and emotionally wounded by their parents' divorce, said Attorney-General Robert McClelland.
Adding on to the proposed ones, there will be other services that are already part of the Supporting Children after Separation Program.
More services will be added depending upon the advice to the government and funding applications.
"This important program will help children throughout this traumatic time to understand and manage the changes in their family relationships, both during and after the separation of their parents," News.com.au quoted McClelland, as saying.
He added: "The new services will be placed in areas of need across Australia and will support children through a range of counselling and group activities."
Professor Matt Sanders, who heads the Triple-P Parenting Program at the University of Queensland, is hoping that the additional funding would also be given to parental programs.
He also said that it was important to include parents in the transition and support process after a divorce.
"The key to a successful outcome is to target the parents. Divorce is a life transition for everyone involved and that transition takes time, but it doesn't have to be detrimental to the children involved," said Sanders.
He added: "The child has to be the number one priority ... there is strong evidence the quality of parenting can have a significant impact on a child's development."
He said that parental separation had varied effects on children depending on their age.
"Teenagers are often the most affected, are often exposed to bad parenting, suffer behaviour problems and have trouble interacting socially," said Sanders.
He added: "In the short term, children may display emotional and academic problems, but in the longer term, children may suffer increased psychological problems as a result of poor parent/child relationships.
"But divorce doesn't have to be detrimental on the kids involved, if the parents have the right tools."