
The first half of 2025 has been a period of continued intensity across the community-managed mental health sector. Services have been operating under growing pressure, shaped by workforce challenges, rising demand, concerns about workers compensation and broader system strain — including the ongoing industrial dispute with NSW public service psychiatrists and concerns over future investment and the urgent need for systemic reform across the entire mental health service system in NSW.
These pressures have directly impacted the work of community-managed mental health organisations, who continue to provide essential support in the face of limited resources and complex service environments.
Mental Health Coordinating Council continues to actively advocate for our members and the sector in critical reform processes; influencing policy and strategic planning at both state and Commonwealth levels, and pushing for practical solutions to the systemic challenges community-managed services face.
Restrictive practices legislative framework
The Department of Communities and Justice sought feedback on a legislated framework for regulating the use of restrictive practices on people with disability. In its submission MHCC welcomed the stronger safeguarding and monitoring of restrictive practices and highlighted the need for the framework to better work towards the promotion of positive behaviour supports and elimination of the use of restrictive practices.
We strongly advocated a model that upholds the rights of people with disability, rationalises processes for providers reporting to multiple regulators and keep regulatory burden to a minimum. Given the high prevalence of traumatic experiences among people with disability, MHCC emphasised the need to recognise and respond to trauma in care settings. This includes the experience of carers, kin and allies who may be witness to the use of restrictive practices and therefore creating generational trauma from the use of restrictive practices. Any use of restrictive practices must be carefully considered to avoid the risk of re-traumatisation. This approach ensures that care is tailored to the individual’s lived experience, aspirations and needs, as well as their history of trauma, fostering a sense of safety and empowerment.
Of critical importance is the need for an individualised approach in which each person’s needs and circumstances are considered when deciding on the use of restrictive practices. No one-size-fits-all approach is appropriate. Likewise, mechanisms must be implemented that include the regular review and oversight of restrictive practices to ensure compliance with the established principles and to identify areas for improvement.
The Department of Communities and Justice will provide advice to the NSW Government to inform next steps. We have not seen any report presented to Government. Likewise, there has been no further advice as to when Government will respond to or action supported recommendations. MHCC will advise our members once we receive further updates.
Special Commission of Inquiry into Healthcare Funding
The Special Commission of Inquiry into Healthcare Funding conducted a major review of the NSW public healthcare system and how it is funded. The Inquiry was tasked with identifying opportunities to deliver higher quality, more timelyand more accessible patient-centred care.
Mental Health Coordinating Council’s submission to the Special Commission addressed seven key issues that relate particularly to the community-managed mental health service sector. It strongly focused on recommendations supported in its advocacy to the Inquiry into the equity, accessibility and appropriate delivery of outpatient and community mental health care in New South Wales and MHCC’s subsequent Pre-Budget Proposal 2025-2029.
We asked that the NSW Government address inadequacies of access across the state through local planning and models of integrated service delivery, and for commitment to investment in the workforce to ensure the level of growth and sustainability necessary to provide the quality of services that meet at a minimum the National Safety & Quality Mental Health Standards for Community Managed Organisations.
In our submission we highlighted the ways in which community-managed organisations are best placed to keep people well in the community and provide a more efficient and cost-effective model of care that better meets the aspirations of people that use services. However, our sector needs to be sustainably funded and resourced appropriately in terms of the identified population needs and the workforce necessary across a myriad of roles to ensure quality service on an ongoing basis.
The Special Commission of Inquiry into Healthcare Funding was handed down by the Honourable Justice Richard Beasley and published in April 2025. The first volume can be access here.
The first, and broadest statement made was “that if universal healthcare is the aim of the NSW public health system, at least parts of that system are underfunded. They have been for some time.” This Report went on to say “it is replete with evidence establishing gaps in service provision and in underfunding related to these crucial aspects of a health system. At least some aspect of underfunding is readily acknowledged by government.” The review touches on community-based mental health but only in the context of publicly funded services.
Joint Statements from NSW peaks: Systemic reform and media accountability
In January 2025, over 200 psychiatrists announced their resignations in the NSW public health system. On top of the existing 140 or so vacant psychiatrist positions, these circumstances reflect the unfortunate state of the mental health system in NSW that is exacerbating the existing challenges and traumatisation experienced by people experiencing severe mental health challenges, as well as their families, and carers.
Amid headlines about psychiatrist resignations, several media reports contained sensationalised content, reinforcing harmful stereotypes and fuelling stigma and discrimination about people living with mental health challenges.
NSW mental health peak bodies Mental Health Coordinating Council, BEING Mental Health Consumers and Mental Health Carers NSW, called for urgent and significant investment from the NSW Government to enhance the entire mental health service system, including for the the recruitment and retention of the workforce across all areas of need.
We also urged the media to report on mental health with accuracy and empathy, encouraging media outlets to use resources like our Recovery Oriented Language Guide and Mindframe national guidelines, developed with mental health professionals, to ensure responsible reporting that reduces stigma and promotes help-seeking behaviour.
Read the Joint Media Release and Joint Statement
We have been advocating that the NSW Government support the proposed National Stigma and Discrimination Reduction Strategy provided to Government in 2021 by the National Mental Health Commission, which aims to create an Australian community where everyone has equal dignity and respect, free from mental health-related stigma and discrimination. The strategy focuses on reducing self-stigma among individuals with lived experience and those who support them, reducing public stigma by changing attitudes and behaviours, and eliminating structural stigma and discrimination in identified settings. We are yet to see action and continue to advocate its progress into policy reform.
National review of the youth mental health model of care
Orygen was engaged by the Department of Health and Aged Care to lead a diverse consortium of organisations from the youth mental health sector to deliver sector-led advice to the Australian Government on the existing system of mental health services for young people aged 12 to 25 years, and potential new and/or refined models of care for mental health services for young people.
Mental Health Coordinating Council provided a response to Orygen’s national review for urgent reform to youth mental health models of care. In its submission MHCC provided a much broader perspective on systemic reform and advocated for seven key reforms to fix a system not equipped to support young people. We’re calling for: expanded services beyond headspace, localised youth hubs, peer-led programs and system navigators, culturally safe supports, genuine youth co-design, “no wrong door” service pathways, and secure, long-term funding models. These are practical, evidence-backed changes that would create a responsive, inclusive and sustainable mental health system for young people. We also highlighted effective models for consideration in future planning that have demonstrated best practice and evidence-based outcomes.
We have already seen some Government funding commitment to youth services. In NSW in Feb 2025, The Minns Labor Government has provided additional funding to further strengthen mental health services on the Northern Beaches. New investments included $1.4 million in recurrent funding to establish a Child and Youth Mental Health Service Consultation Liaison service to enhance youth mental health and drug and alcohol services at Northern Beaches Hospital and across the Northern Sydney Local Health District. The Australian government also committed $4.6 million over three years to expand access to Orygen’s MOST digital mental health service.
The Albanese Government has promised:
The new specialist centres, which draw on Orygen’s specialist early intervention program, will provide expert mental health care for the “missing middle” – the service gap between primary care and emergency departments for young Australians with more complex needs, such as eating disorders, personality disorders, complex mood disorders and early psychosis. The headspace funding would build 25 new centres and upgrade 33 existing centres to meet more complex needs.
Secure Jobs and Funding Certainty Roadmap
The NSW Government made a 2023 commitment to deliver more funding certainty for the NSW community services sector and job security for those employed in the sector. The changes will support stability and increased efficiency, helping sector organisations to improve planning, reduce staff shortages and free up resources for service delivery.
Mental Health Coordinating Council’s CEO, Dr Evelyne Tadros, was part of the Leadership Group for Secure Jobs and Funding Certainty, advocating strongly for greater funding certainty and workforce stability for our sector, including:
Through collaboration with a Working Group comprised of Primary Health Networks in NSW/ACT and community-managed mental health organisations, we collectively continue to advocate for longer contracts, indexation that adequately reflects wages and CPI and drive consistency in a number of areas. This includes reporting frequency, KPIs, outcome measures, and data collection. We channelled the learnings and expectations from the PHN/CMO Working Group into contributions for the development of the NSW whole-of-government approach to Secure Jobs Funding Certainty Roadmap.
The co-designed Roadmap recognises the important partnership between NSW Government and community service providers in delivering essential services: from domestic violence, housing and homelessness services to health and education. It aims to address key challenges facing the sector and ultimately create better outcomes for our communities.
The Roadmap identifies the following priority work areas as vital to the transformation of the community services sector in NSW. These initiatives will be implemented progressively over the next few years in close partnership with the sector, to deliver long term change. It is anticipated that it will be completed in 2027. Priority areas are: Long Term Funding Arrangements; a Community Services Funding Framework; a Community Services Jobs Compact; and a Community Services Prequalification Scheme.
A Secure Jobs Funding Leadership group will progress actions, seeking alignment with complementary or relevant activity being undertaken at a Commonwealth Government level, or in other jurisdictions, in particular in line with Closing the Gap Priority Reform 2, Building the Aboriginal Community Controlled sector.
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