Free mental health services or political band-aid?

From January next year, Australians battling mental health challenges will have access to free counselling via Medicare – no diagnosis, no GP referral required.

With a national shortage of psychologists and psychiatrists, both major political parties are under pressure to ensure that when Australians reach out for help, they know where to turn – and can actually get support.

The stakes couldn’t be higher. Nearly 40% of Australians aged 16-24 experienced a mental health disorder in the past year, a staggering 50% increase since 2007. Suicide remains the leading cause of death for Australians aged 15 to 44.

In response, the Albanese government is rolling out its national early intervention service (NEIS), set to go to tender within weeks. Designed to be operated by major providers and private health insurers, the program will offer free cognitive behavioural therapy (CBT) via phone or video.

The government has committed $588.5 million over eight years from 2024-25 and an ongoing $113.4 million per year to sustain the initiative. By 2029, NEIS is expected to reach over 150,000 people annually. Meanwhile, more than 60 sites across the country are establishing walk-in mental health support services.

Australians for Mental Health is calling for additional steps including establishing a Wellbeing Act and a dedicated Mental Health and Wellbeing Commissioner in the Australian Human Rights Commission to help keep governments accountable. 

The private sector is already stepping up. Medibank has pledged an additional $50 million over the next five years toward mental health initiatives.

Medibank CEO David Koczkar said “The current mental health system is not fit for purpose and is creating bigger societal issues for future generations by not having effective preventative mental health strategies in place. We owe it to future generations to get this right. The reality is that mental health services are available to people after they have started to experience a significant mental health condition.”

He added, “We recognise that we don’t have all the answers, and we cannot do this alone, which is why we are collaborating with batyr, Black Dog Institute, Flying Fox and Orygen so we can work together to find solutions. There is no single solution to this multi-faceted problem.”

HCF members are also gaining access to more mental health support, with an annual free check-in via PSYCH2U and programs like This Way Up, which provides CBT-based tools for managing stress, anxiety, and related challenges.

But not all government moves have been well received. In 2022, Labor halved the number of Medicare-covered psychology sessions from 20 to 10 per year, arguing it would increase access. Instead, a bottleneck of existing patients meant fewer Australians could book appointments at all.

Yet, Shadow Health Minister Senator Anne Ruston said the Albanese Government’s decision to cut the number of Medicare-subsidised mental health sessions Australians can access in half was against the advice of their own review and Australia’s mental health experts.

“Clearly, the Albanese Government’s bizarre explanation that they cut the initiative to improve access for more patients was not only disingenuous, but it was wrong,” Senator Ruston said.

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