With the clock ticking, getting the new National Agreement right matters

This week marks the start of a new financial year – and for those of us in the mental health sector it also signals an important moment. 

On 1 July, the current National Mental Health and Suicide Prevention Agreement (National Agreement) moved into a one-year extension. In effect, we’re now on borrowed time. The next few months represent a crucial window to get the next National Agreement right. It must go further than simply continuing existing arrangements, and truly reflect what people and communities across Australia need.  

The new National Agreement between the Commonwealth and the states and territories will set the direction for national mental health reform, guide how governments work together, and shape how people access support across the country.

It’s crucial that it’s shaped by the voices of people with lived experience, alongside families, carers, kin and the broader mental health and suicide prevention sectors. Their insights are essential to setting the right priorities and creating meaningful change. 

There is important work ahead. The Productivity Commission review of the National Agreement found that while progress has been made, many of its structures are ‘not fit for purpose’ and significant changes are needed.  

The clear priorities and unfinished business governments must address through the next National Agreement include: 

• Psychosocial supports – addressing unmet need for psychosocial supports outside the NDIS, funded through the Foundational Supports Agreement  
• Kids and families – expanding Medicare Mental Health Kids Hubs to address the gap in mental health support for children and their families 
• Governance structures – improving transparency and accountability by continuing to embed lived experience and sector representation; strengthening the role of the National Mental Health Commission; and committing to a mid-term review of progress. 
• Continuing to improve and integrate existing commitments under the Agreement – including Medicare Mental Health Centres, Medicare Mental Health Kids Hubs, headspace youth mental health supports, supports for people at risk of or experiencing eating disorders and national perinatal mental health screening – to help build a more connected, equitable and accessible national mental health system.  

Mental Health Australia will release a Sector Priorities Statement in the coming weeks which outlines advice to Health and Mental Health Ministers on priorities for the next National Agreement. This advice builds on extensive insights we’ve received through our membership over the past 12 months. We’ll also release a document outlining Fundamental Principles for Psychosocial Supports Outside the National Disability Insurance Scheme to guide the development of a national approach. 

We understand all Health and Mental Health Ministers will be considering priorities and approach for the National Agreement at their next meeting. With the National Health Reform Agreement secured, this is the last national agreement for the Albanese government to land in this term of government. Timeframes are tight – and will need to weave around upcoming elections and caretaker periods, with Victoria heading to the polls in November and NSW in March 2027. 

As a sector, we must stay focused and united. We cannot take progress for granted. By working together and speaking clearly and consistently about what needs to change, we can help shape a National Agreement that delivers meaningful, lasting reform for people and communities across Australia. 

Michelle Possingham is Mental Health Australia’s Director, Programs and Sector Development
Mental Health Australia CEO Carolyn Nikoloski is on leave this week.