Mental Health Coordinating Council has provided a submission to the Productivity Commission’s Interim Report, highlighting serious shortcomings in the National Mental Health and Suicide Prevention Agreement. Our submission underscores the pressing need for coordinated national action to address unmet psychosocial support needs and deliver on long-standing commitments.

What it’s about

Mental Health Coordinating Council has responded to Productivity Commission’s Interim Review which demonstrates how Australia’s National Mental Health and Suicide Prevention Agreement has failed to meet expectations. The review reflects longstanding concerns expressed by the community-managed mental health sector, particularly in relation to the design of the Agreement and the lack of progress to address unmet need for psychosocial support – a still as-yet undelivered joint commitment.

Background

The Productivity Commission is an independent statutory body that has been tasked by the Australian Government to review the National Mental Health and Suicide Prevention Agreement. The Agreement outlines the Australian Government, and all state, and territory governments’ shared commitment to improve the mental health of all Australians, reduce suicide rates, and ensure the sustainability and enhancement of mental health and suicide prevention services.

The Productivity Commission’s Interim Report was released in June, and responses to its findings will inform its final report due in October 2025.

Mental Health Coordinating Council has provided a response in the form of a submission, highlighting urgent reform priorities and the need for immediate collaborative action from all governments to address longstanding unmet needs in mental health and psychosocial support.

Why it matters

The existing National Mental Health and Suicide Prevention Agreement remains fundamentally flawed and has not delivered on its joint commitment to psychosocial support – impacting an estimated 500,000 people. The systemic issues identified by the Productivity Commission closely align with concerns that Mental Health Coordinating Council and the sector have raised for years. Without urgent reform and action, individuals living with severe and complex mental health challenges will continue to fall through the cracks. Whilst the Agreement needs to be redesigned this should not lead to delays in addressing the gap.

Key issues

• Ongoing failure to address the significant gap in psychosocial support services
• Lack of progress on delivering commitments made in the original Agreement
• Risks associated with shifting negotiation responsibility to Premier and Cabinet, particularly the potential loss of specialist knowledge from the Department of Health
• Need for stronger cross-sector collaboration and a more coherent, long-term reform strategy
• Insufficient access to services for people with mental health and co-occurring alcohol and other drug use issues, and for older persons with mental health needs
• Need for greater recognition and investment in peer-led mental health services, with recent evidence showing strong return on investment

Our Recommendations

Mental Health Coordinating Council calls for the following actions to be prioritised in the Productivity Commission’s final report and by governments:

• Immediate government action to address the unmet psychosocial support needs of around 500,000 people
• A new policy architecture for national reform, including:
  • A long-term reform strategy
  • A five-year national agreement
  • Bilateral funding schedules with all jurisdictions
  • Dedicated schedules for Aboriginal and Torres Strait Islander social and emotional wellbeing and suicide prevention
• Ensure the Department of Health retains its central leadership role, even if responsibility for negotiation shifts to Premier and Cabinet
• Enhance access for people with co-existing mental health and substance use issues, and for older adults with mental health challenges
• Recognise and invest in peer-led mental health services, referencing evidence from a 2022 study demonstrating strong social and economic return
• Formalise the role of the National Mental Health Commission in independently monitoring progress
• Improve governance arrangements through increased lived experience and sector participation in co-design and oversight

What happens next

The Productivity Commission will release its final report in October 2025.