The Outreach Library in Colac will receive funding under the Be Connected program to provide digital devices to older residents.

In addition almost $5 million will be used to significantly expand Friend Line, a national telephone support service for older Australians, to answer 60,000 calls a year.

Member for Wannon Dan Tehan said a $2500 grant would assist Colac and district locals to connect with friends and family during the Coronavirus and help boost IT literacy.

"Over twenty per cent of residents in the Wannon community are over 65 and many Australians in this age group are not always confident using digital technology," he said.

"These grants will help improve the online skills of our senior residents who are increasingly turning to the internet to access online services during the coronavirus while expanded access to Friend Line will make sure that no seniors in Wannon feel lonely or isolated."

Minister for Families and Social Services Anne Ruston said accesses to timely support as well as digital and social connections were essential to support older Australians to live independently.

"With a third of all senior Australians living alone there is a real need for this assistance to alleviate loneliness and social isolation," she said.

Minister for Communications, Cyber Safety and the Arts Paul Fletcher said the government's Be Connected program was making modern technology available to seniors for free as well as building their online skills and know-how through step-by-step training.

Minister for Aged Care and Senior Australians Richard Colbeck said the funding for Friends Line would enable its provider Friends for to expand the service through to 30 June 2024.

"Friend Line is a free and anonymous telephone service that will provide older Australians an opportunity to chat with a friendly volunteer," he said.

"In the first year Friend Line anticipates answering 20,000 calls scaling up to at least 60,000 a year after that up from 5600 calls a year currently."

Friend Line (1800 4 CHATS) will rapidly expand to be available outside normal business hours between 10am to 8pm, seven days a week.

The latest investment comes on top of a new support line offering specific advice and counselling for senior Australians seeking assistance because of COVID-19.

Established in conjunction with the Council on the Ageing Australia, National Seniors Australia, the Older Persons Advocacy Network and Dementia Australia, the COVID-19 support line will operate Monday to Friday, except public holidays, from 8.30am to 6pm on 1800 171 866.

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