Budget Estimates hearings provide an important opportunity for Parliament to review government expenditure and examine how systems are responding to the needs of the community. On 4 March 2026, the NSW Minister for Mental Health, the Hon. Rose Jackson MLC, appeared before the NSW Parliament’s Budget Estimates Committee, where members of Parliament questioned the Government on a range of issues affecting mental health services across the state.
For the mental health sector, Budget Estimate hearings offer insight into how government understands current system pressures and where policy and funding priorities may be heading. Discussion during the session this year touched on several issues across both hospital and community settings, including workforce capacity, pressures on emergency departments, infrastructure challenges and the role of community-based services in supporting people before crises escalate.
What we heard
Here are the key themes raised during this year’s hearing:
1. Community mental health identified as a government priority
- The Minister stated that community mental health is a major focus of the Government.
- An example given was the hiring of 14 additional community mental health clinicians in one district over the past year.
- The Minister acknowledged ongoing advocacy for more resources across the mental health system.
Implication: Government signalling continued interest in strengthening community mental health capacity, though examples cited remain largely within the public health system.
Mental Health Coordinating Council (MHCC) welcomes this recognition and has long advocated for stronger support for the community-managed sector. However, greater targeted funding for non-government organisations in mental health is needed. The public mental health system cannot meet growing demand alone. Community-managed organisations play a critical role in delivering psychosocial supports, prevention and early intervention services, and ongoing care that helps people stay well and connected in their communities. Investment in this part of the system is essential to creating a more balanced and sustainable mental health service system.
2. Continued pressure on emergency departments for mental health care
- Mental health presentations to emergency departments remain high.
- Some patients are waiting up to 26 hours for treatment.
- Median wait times for mental health patients have increased compared with four years ago.
The Government pointed to several initiatives aimed at reducing emergency department pressure:
- Medicare Mental Health Centres (jointly funded with the Commonwealth)
- Safe Havens (22 across NSW)
- A future virtual mental health “Single Front Door” triage system this will be ConnectMH
Safe Havens are not open 24/7, limiting their ability to replace emergency care. MHCC continues to advocate for expanded access to Safe Havens, in line with Recommendation 27 of the NSW Inquiry into the equity, accessibility and appropriate delivery of outpatient and community mental health care.
3. Cumberland Hospital incidents and system safety
A large portion of questioning focused on two serious incidents involving patients absconding from Cumberland Hospital.
Key points discussed:
- Two patients absconded and were later involved in incidents leading to three deaths and multiple injuries.
- Reviews and investigations are underway.
- Increased security staff at Cumberland Hospital
- Established an ‘independent’ oversight team to review operations I have placed ‘independent in brackets as it seems to be relative. Chief Psychiatrist is the Chair of the review so not quite independent, but I guess independent from WS LHD
- Questions were raised about staffing levels and safety protocols.
The Minister emphasised the need to avoid stigmatising mental health consumers and that most people receiving mental health care pose no danger to others.
4. Abscondment incidents in mental health facilities
Data discussed during the hearing:
- 191 “type-1 abscondments” occurred in NSW in 2025
Previous years:
The Minister noted most abscondments are resolved quickly with the person returned to care. Serious incidents following abscondments are very rare.
5. Staffing pressures in inpatient mental health services
Concerns raised included:
- Reports of nurses caring for up to eight patients at once.
- Calls from staff for increased nursing and security resources.
- Safe staffing ratios currently apply to emergency departments only, not mental health units.
The Minister stated that expansion of safe staffing to mental health units has not yet been funded but could be part of future discussions.
6. Infrastructure and facility problems
Several mental health facilities were reported to have maintenance and infrastructure issues, including mould.
Examples mentioned:
- Westmead Mother and Baby Unit
- Bloomfield campus in Orange (five forensic mental health beds closed due to mould)
- Callan Park/Gladesville (issues raised during the hearing)
The Minister acknowledged that many mental health facilities are old and infrastructure issues can disrupt services.
7. Closure of therapeutic programs in inpatient settings
Discussion referenced reports that day programs and work-skill activities had been removed from Cumberland Hospital due to funding constraints.
These programs were described as previously supporting:
- structured activity for patients.
The Minister said the oversight team should review whether such programs should be reinstated.
8. Use of restrictive interventions and clinical oversight
Questions were raised about cases where patients were sedated and intubated during severe behavioural disturbances.
Key points:
- These decisions are often made in emergency situations.
- They are recorded as serious incidents and reviewed locally.
- The Minister indicated openness to stronger oversight mechanisms for such cases.
MHCC continues to advocate for stronger safeguards and monitoring of restrictive practices, alongside greater focus on reducing their use.
9. Policy emphasis on least-restrictive care
The Minister reiterated that NSW mental health services aim to provide least-restrictive care, meaning:
- Minimising coercive or restrictive practices
- Supporting recovery-focused treatment approaches.
10. NSW Mental Health and Wellbeing Strategy timeline
The next 10-year NSW Mental Health and Wellbeing Strategy is expected to launch in late 2026 or early 2027, noting that the timing will need to account for the caretaker period being close to the 2027 NSW State Election.
While the hearing covered a broad range of operational and system issues, a consistent theme across many discussions was the continuing pressure on hospitals and emergency departments to respond to mental health needs that could often be better supported in community settings.
As the NSW Government prepares its next Budget, these discussions reinforce the importance of strengthening community-based supports alongside hospital services. MHCC’s Pre-budget Submission 2026-27 calls for a realignment of mental health funding so that 30% of overall mental health expenditure is directed towards community-managed mental health services.
Rebalancing investment in this way would support earlier intervention, reduce pressure on acute services and strengthen the community supports that help people stay well, connected and out of hospital.
