Election promises see progress but key mental health challenge left untouched
17 December 2025
Mental Health Australia welcomes the Australian Government’s delivery of its $1.1 billion election mental health investment, along with a further $158 million to improve access to much-needed mental health supports, through today’s Mid-Year Economic and Fiscal Outlook (MYEFO).
However, the national mental health peak body is disappointed to see no tangible action taken on providing much-needed psychosocial supports for people living with severe and moderate mental health challenges.
“Despite clear advice from the sector, the Government has missed a key opportunity to act,” said Mental Health Australia CEO Carolyn Nikoloski. “The mental health sector is united behind this issue; it is disappointing to see another opportunity to provide care for nearly half a million people pass us by.”
Currently, around 500,000 people in Australia are missing out on essential psychosocial supports. These supports help people live well in the community and reduce pressure on an already stretched mental health system, including hospital-based supports.
“We need stronger investment in community settings so people can access the right care, in the right place, at the right time,” said Ms Nikoloski.
“MYEFO was the next chance to start addressing this urgent need, and the Government has not taken it. With the next National Mental Health and Suicide Prevention Agreement likely another 18 months away, we can’t afford to wait – people need support now.”
Mental Health Australia released a Renewed Statement on Addressing Unmet Need for Psychosocial Support Outside the NDIS, in October 2025.
Ms Nikoloski said: “This renewed Statement, developed in consultation with our members, outlines a practical pathway for governments to close the gap in psychosocial supports.”
The Productivity Commission’s recent review of the National Mental Health and Suicide Prevention Agreement reinforced the urgency, calling for immediate action on psychosocial supports. Yet, today’s MYEFO shows no sign of progress.
“We need to see real change and collective action at the Health and Mental Health Ministers’ Meeting in February 2026. This issue must be front and centre.”
While this has been a missed opportunity, the MYEFO announcement does show the Government is progressing in its election commitments to increase access to mental health services for young people and adults.
Ms Nikoloski said: “The allocation of funding committed to in the election recognises the importance of improving access to affordable mental health care for people in Australia. This is critical for young people who are experiencing unprecedented rates of mental health challenges and complex care needs.”
“These election investments mark another important step towards building a mental health system that is more responsive, inclusive and effective.”
Mental Health Australia will continue to work with governments and the sector to ensure comprehensive action on mental health.
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Media contact:
Caroline Illingworth, Mental Health Australia Senior Communications Manager - 0417037595