The mental health crisis hotline will also welcome 50 new volunteer crisis supporters to keep up with demand.

From drought to bushfires and COVID-19, Lifeline has been under the pump in 2020.

In ACT alone, Lifeline received 3113 calls during September, a 17 per cent jump from 2019.

Lifeline Canberra chief executive Carrie-Ann Leeson described the funding increase as an acknowledgment of the organisation's efforts and outcomes during a period of high demand.

"Every call answered has the potential to save a life or change the lives of Australians in need," she said.

"To our amazing telephone crisis supporters thank you for all you do. We welcome the new crisis supporters to the Lifeline Canberra team as they join the existing team of hundreds."

ACT Minister for Mental Health Shane Rattenbury said the funding and increased workforce would ensure mental health services were equipped to help people in need.

Lifeline Canberra previously received a $100,000 funding boost in March when the COVID-19 pandemic began.

Even in the early stages of COVID-19, Lifeline Canberra reported a 25 per cent increase in demand.