The recent NSW Budget 2025-26 announcement was disappointing for the community supports that provide early intervention, prevention and recovery-oriented care for people living with mental health challenges – the most effective but underfunded solution to addressing a mental health system in crisis.

Mental Health Coordinating Council (MHCC) has continually advocated for significant, sustainable investment in community-based mental health care – without which the continued over-reliance on emergency and acute services will perpetuate a system at breaking point.

MHCC’s Chief Executive Officer, Dr Evelyne Tadros, was featured on ABC TV recently, warning of serious concerns over the lack of funding, “We’re going to continue to see emergency departments blocked with people presenting with mental health challenges”.

While MHCC acknowledges some targeted funding commitments in the NSW Budget, these fall far short of what is needed to meet the scale of community mental health needs.

Key funding announced in the NSW Budget 2025-26 included:

• $23.1m to expand community-led suicide prevention and wellbeing support programs for First Nations people.
• $15.4m in 2025-26 to boost the community mental health workforce and enhance mental health support for young people and regional communities.

These small investments represent a drop in the ocean in addressing clearly identified widespread mental health and psychosocial needs highlighted in multiple reviews and gap analyses.  Dr Evelyne Tadros stated in Mental Health Coordinating Council’s recent Media Release  to the NSW Government that:  “Despite the funding commitments in the 2025-26 State Budget, we have yet to see these commitments realised in meaningful terms to numerous critical services t provided by community-managed mental health organisations,” says Dr Evelyne Tadros.

The Productivity Commission’s recent Interim Report on the review of the National Mental Health and Suicide Prevention Agreement reinforced the urgent need for coordinated action and investment across federal, state and territory governments.

We urge the NSW Government to fulfil its stated commitments and address the state’s acknowledged existing and growing needs. Without targeted state-level investment in mental health and psychosocial supports delivered by community-managed services, people will continue to fall through the cracks.

Other related NSW Budget 2025-26 announcements included:

Mental health infrastructure

• $323.5m over four years to 2028-29, to continue delivering infrastructure required to progress key mental health reforms for improved mental health care. This includes child and adolescent and older persons services, forensic services, and facilities to promote recovery and enhance opportunities for people to transition to or receive care within the community.
• $408.5m over four years to 2028-29, to relocate mental health services at Cumberland Hospital West to a new mental health facility in the Westmead Health Precinct, connected to Westmead Hospital.

Disability and ageing

• $8.5m to fund disability initiatives and upgrade government-owned disability properties.
• $8m for the Ageing and Disability Commission to continue its frontline safeguarding work.

Victim-survivors support

• $49.4m to fund a trauma-informed hub to support victim-survivors, including those who have experienced domestic, family and sexual violence, who are participating in legal proceedings.
• $226.8m to address the increase in demand for the Victims Support Scheme, to ensure continued access to counselling and financial support.

Perinatal

• $21.9 million for the Aboriginal Families First 2,000 Days package to provide culturally responsive care during pregnancy and the first five years of life.

Workplace

• $344m package to better support injured workers, including restore the independence of SafeWork NSW, ensuring it is recourse to protect workers from harm, including psychosocial hazards.
• $30.2m to build a new digital platform to support the Portable Long Service Leave for community workers.