Australian Ambassador Rod Smith said: "The contribution addresses the needs of people uprooted from their homes and separated from their means of livelihood because of the conflict."
He continued that Australia hopes people displaced by the conflict can return home the soonest and government efforts along with other donors can resume their focus on peace building and development.
The Australian government has been a staunch supporter of the peace process being undertaken by the Philippine government with the various rebel groups in the country, especially in Mindanao.
Since 1997, Australia has been encouraging the continued peace process through the ACT for Peace Program, which aims to strengthen and sustain peace building efforts in Mindanao. (CPM)