The 2025 Report on Government Services by the Productivity Commission outlines both challenges and progress in Australia’s mental health service system, including NSW.
The report reveals ongoing gaps in accessibility and community-based supports, with rising government spending driven by increased costs rather than expanded services.
Key findings include:
- $12.6 billion ($478.47 per person) was the total government expenditure on mental health services in 2022-23, with states and territories contributing two-thirds ($8 billion) and the Australian Government contributing $4.6 billion.
- In NSW, $278.35 per person was spent on specialised mental health services, below the national average of $307.63, highlighting a concerning funding disparity.
- NGOs accounted for just 9.3% of NSW’s total $2.3 billion expenditure on specialised mental health services, a decrease from 10.2% the previous year, emphasising the urgent need to strengthen support for critical community-based services.
- 68% of mental health-related emergency department (ED) presentations in NSW met clinically recommended times – and while this was the highest rate nationwide, the figures highlight the need for greater investment in ED alternatives for people experiencing mental health crises.
- 22.4% of NSW residents delayed or did not seek mental health care due to cost concerns – bleak evidence that financial barriers continue to impact accessibility within the cost-of-living crisis.
While the report shows progress in some areas, it strongly underscores the urgent need for continued advocacy to prioritise funding for community-based services and address critical accessibility barriers in NSW. In the current climate of reviewing models of care and alignment to identified need, the critical role of NGOs in community mental health must be recognised and supported to meet current and future mental health needs.
MHCC has provided the NSW Government with our Pre-Budget Submission, detailing the actions, targets, and investment needed to bring about the reforms required for meaningful change for people living with mental health challenges. We hope to see the NSW Government implement these considered recommendations developed in consultation with our members.
