A 500-page report was tabled in the state parliament on Thursday morning.

Several central Victorian agencies presented evidence to the committee last year.

The committee - made up of members from the parliament's upper house - found that one in 57 Victorians accessed a government-funded homelessness service during the 2018-19 financial year.

But the committee suggested this figure likely underestimated the demand.

Related: Central Victorian councils, organisations call for a holistic approach to reduce homelessness

"Victoria's homelessness system is overwhelmed with those in need, making it increasingly difficult for service providers to adequately respond to the complex and varying problems a person faces," the committee reported.

"There is significant risk in treating immediate problems in isolation. This increases the likelihood of fragmented systems of delivery of services. Fragmented service delivery can undermine efforts to prevent episodes of homelessness, increasing the risk that a person may experience homelessness for longer and longer periods."

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The recommendations for the state government include increased provision of long-term housing, a more flexible approach to the funding of homelessness programs, better early intervention measures for those facing violence, and the provision of social housing that meets the needs of those experiencing homelessness.

Committee chair Fiona Patten said there was significant concern about demand for help outstripping supply.

"We need to be smarter about where we direct our efforts. The two best things we can do are strengthen early intervention services and provide more secure, long-term housing for the homeless," she said.

The state government has previously promised to spend $5.3 billion on new social housing, including $85 million in the Bendigo area.

More to come

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