Mental Health Coordinating Council welcomes the investments announced in mental health and suicide prevention, however, the funding falls short of the substantial investment needed for community-managed mental health services to address the growing demand for psychosocial supports across NSW.

As the final NSW Budget before the next state election, the 2026-27 NSW Budget provides an indication of the NSW Government’s priorities and planned investments over the coming years. For the community-managed mental health sector, it offers some welcome investment and continuity for existing programs and recognition for the important role of peak bodies, but leaves important questions about future reform and long-term funding unanswered.

The Budget includes funding for a number of mental health, disability and community service initiatives, however it does not provide certainty about future investment in psychosocial Foundational Supports or address the system-wide gaps or workforce challenges facing the community-managed mental health sector.

Key funding announced in the NSW Budget 2026-27

The following announcements are among the key measures in the Budget that may impact mental health, disability and community services:

• $112.3 million for mental health and suicide prevention initiatives, including $43.3 million for Lifeline, $64.8 million to extend programs delivered under the National Mental Health and Suicide Prevention Agreement, and $4.3 million to support mental health peak organisations.
• Additional investments delivered in partnership with the Australian Government through National Agreements, Federation Funding Agreements and other Commonwealth funding arrangements. Whilst psychosocial Foundational Supports are expected to be jointly funded by the Commonwealth and states; the Budget provides no certainty around NSW’s investment.
• Closing the Gap commitments, including $9.3 million for culturally safe mental health services delivered through Aboriginal Community Controlled Health Organisations and Local Health Districts, and $3 million for community-led Aboriginal projects, which may include social and emotional wellbeing initiatives.
• 4.75% pay increase for community workers, including workers covered by the Social, Community, Home Care and Disability Services (SCHADS) Award, in line with the Fair Work Commission determination, which the NSW Government is passing on in full.
• Workers compensation reforms to support the long-term sustainability of the scheme and improve outcomes for workers and employers.
• $8.3 million for Bondi attack recovery, memorial, and resilience projects.
• $4 million for the Ageing and Disability Commission to help protect older people and adults with disability from abuse and neglect.
• Cost of living relief via $100 vehicle registration discount, toll cap reduced from $60 to $50 per week, toll administration fees abolished and Opal fares frozen.
• $631.9 million over five years as NSW’s contribution to Thriving Kids, part of a $1.1 billion Commonwealth-State package to support children aged 8 and under with developmental delay and/or autism. The program includes general supports such as playgroups, parenting support and peer support, as well as targeted supports including allied health and family support coordination.
• An additional $184.1 million over four years to increase funding by 50 per cent for six frontline specialist domestic and family violence programs, including Safer Pathway, Staying Home Leaving Violence and Integrated Domestic and Family Violence Services, Men’s Behaviour Change programs, Domestic Violence Response Enhancement, and Specialist Workers for Children and Young People. Additional funding includes $6.3 million for the Common Approach to Risk Assessment and Safety (CARAS) and Aboriginal domestic and family violence reforms, and $4.9 million to improve victim-survivor court experiences.

Mental Health Coordinating Council will continue to advocate for the sustained investment needed to strengthen community-based mental health supports, meet growing demand across the state, and provide certainty about the future of psychosocial Foundational Supports.