NSW government fails to back mental health inquiry findings with essential funding

NSW Government has supported most of the recommendations from the Portfolio Committee’s Inquiry Report on ‘Equity, accessibility and appropriate delivery of outpatient and community mental health care’. However, stakeholders are disappointed to note no new significant investment or commitments to address the critical and increasing gap in mental health services.

Of the 39 Inquiry recommendations, 24 are supported without any significant additional funding, and whilst 8 are supported in principle and 7 noted, there is no commitment to actions moving forward.

Dr Pramudie Gunaratne, Chair of the Royal Australian and New Zealand College of Psychiatrists (RANZCP) NSW Branch, said “If our mental health system was buckling before, it is broken now. For many people with mental illness in the state, there is literally nowhere to turn for help.

“Demand for mental health services is skyrocketing. Our wards are full, forcing us to send patients home prematurely to make room for others. Community teams are overwhelmed and can only accept the most severely unwell.”

Mental Health Coordinating Council (MHCC) CEO Dr Evelyne Tadros stated “We urgently call on the NSW Government to develop a clear and meaningful plan to address the Inquiry’s recommendations that address the collective priorities identified across several state and national reviews.”

The NSW Government has acknowledged some areas of need with commitments to previously announced initiatives in their 2024-25 Budget allocations, but have failed to support recommendations to increase and maintain sustainable funding across the mental health system.

Nevertheless, MHCC said it is encouraged to see consideration of introducing five-year funding agreements for NSW Mental Health Community Living Programs to support greater stability of the workforce, however a concrete commitment to the workforce remains unclear.

Dr Tadros added, “We look forward to the NSW Government now investing to deliver the meaningful change absolutely necessary to ensure equity and access to mental health services, particularly for the community-managed services sector.

“Without new initiatives or sufficient funding, the community mental health system will continue to struggle under the weight of increasing demand and limited resources. The time to act is now, if we are to meet the growing needs of our community.”

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