Victorians will receive better treatment for life-threatening allergies and will be treated more quickly as part of $430,000 package announced by Health Minister Bronwyn Pike.

Ms Pike said the Government had joined forces with the country's top allergy experts at the Royal Children's Hospital and the Murdoch Childrens Research Institute (MCRI) to bring hope to sufferers of allergy sufferers.

And, in an unprecedented move, one of Australia's most successful businessmen, John Ilhan, has pledged $100,000 toward boosting research into allergies.

The Government funding will significantly boost diagnosis and treatment at the Royal Children's.

Renowned expert Associate Professor Mimi Tang has already been appointed director of the allergy department with a paediatric trainee, dietician, data manager and nurse practitioner further strengthening the new department.

'With a growing demand for answers to allergies such as anaphylaxis—the potentially life-threatening allergic reactions usually caused by food such as peanuts—it is vital we tackle this issue head-on,' Ms Pike said.

'Studies show there are few countries more affected by allergies than Australia.

'By bringing the best in allergy treatment and research together we believe we can make a real difference to the lives of affected families.

'From the potentially deadly allergies, to allergies that cause malnourishment, breathing and skin problems, we are substantially strengthening and expanding the good work already being performed at the Royal Children's Hospital.

'This new expanded approach to the problem of allergies in children will give families of serious allergy sufferers a beacon of real hope.'

Associate Professor Tang said the commitment from the Government meant the Royal Children's could boost staff numbers and treat more patients, now and into the future.

'Our vision is to provide a facility that will improve Victorians' access to world-class care with an additional focus on cutting-edge training and research,' Associate Professor Tang said.

Successful Melbourne businessman John Ilhan and his wife, Patricia, are also heavily involved in the new attack on allergies, donating $100,000 to the MCRI through the newly-established Ilhan Food Allergy Foundation.

Mr Ilhan said the foundation was dedicated to finding a cure for potentially deadly allergic reactions to peanuts, prompted by watching his daughter, Jaida, suffer from allergic reactions.

'The decision to create the Ilhan Food Allergy Foundation came from the heart,' Mr Ilhan said.

'To see Jaida suffering from allergy attacks was heart-breaking.

'Both Patricia and I knew then that we had to do something about the problem.

'I think that all allergy sufferers deserve hope that their fate might improve.'