A funding boost of $200 million is needed to subsidise technology for diabetics who can't afford potentially life-saving devices which help monitor and deal with the chronic disease.

Diabetes Australia Group has published a report with economic modelling that suggests the investment would help nearly 40,000 people with Type 1 and Type 2 diabetes.

Over the next four years, the group says, the commonwealth budget should include $130 million to expand access to subsidised insulin pumps and $70 million for subsidised continuous glucose monitoring devices for those with Type 2 diabetes.

Cases of the chronic disease are on the rise as a 32 per cent increase has been recorded in the decade since 2013, impacting five per cent of Australians (roughly 1.5 million people), according to the government.

The charity's chief executive, Justine Cain, says the funding is needed as diabetes technology is too expensive for some Australians.

"There are so many Australians struggling with the rising cost of living, that are missing out on life changing and potentially lifesaving diabetes technology," she said.

The fund would also have economic advantages, she said.

"If we can reduce the number of people who develop diabetes related complications like stroke, heart attack, blindness and kidney disease – we could reduce the economic burden on our health system by billions of dollars each year."

The research comes after the federal government published a report on July 3 about the state of diabetes, following a year-long inquiry by the standing committee on health, aged care and sport.

One of the 23 recommendations aimed at strengthening the response to diabetes and obesity was expanding subsidised access to insulin pumps for all Australians with Type 1 diabetes.

The committee also recommended:

* An economic analysis of the direct and indirect cost of all forms of diabetes

* A tax applied according to a drink's sugar content

* Food labelling reforms to help consumers identify added sugar content via front-of-pack labelling

* Regulating the marketing and advertising of unhealthy food to children

* An expedited review of Australian Dietary Guidelines

* National screening programs for all forms of diabetes alongside a public health campaign.