NSW Budget Estimates provided important new detail on several major mental health reforms, including the long-awaited mental health gap analysis and the rollout of the new health-led crisis response.

Last week, NSW Parliament held Budget Estimates, an important part of the annual Budget process that questions Ministers and senior officials about government spending, decisions and the progress of key commitments.

The hearing on mental health provided further detail on several significant areas of reform. Key points include:

Mental health gap analysis to be released

Minister for Mental Health, the Hon. Rose Jackson, confirmed that the long-awaited NSW gap analysis of ambulatory and clinical mental health services has been completed and is expected to be released in the coming weeks.

The analysis uses the National Mental Health Service Planning Framework, a tool that is currently under review. While MHCC has previously highlighted limitations of the framework, we welcome the Government’s commitment to publicly release the findings.

Transparency of the analysis is an important step towards understanding service gaps and creating a shared foundation for addressing unmet mental health needs.

The Minister also noted considerable overlap with the Bondi Junction Inquest recommendation examining the decline in mental health outreach services, current demand and the resources required to rebuild capacity.

Health-led crisis response

We heard further detail about the Government’s new health-led response to mental health emergencies, which is targeting January 2027 for commencement. Minister Jackson acknowledged that the initial eight mobile teams operating 12 hours a day will not provide round-the-clock coverage across NSW, with the model intended to be staged and expanded based on evidence and evaluation.

NSW Ambulance will lead the new response and officials confirmed the model will involve 133 full-time equivalent positions overall, with 50 to be recruited in 2026–27. The composition of the mobile teams is also still being determined, including whether dedicated lived-experience roles will be included.

While moving away from police as the default responder is an important reform, police will still be required in situations involving serious and imminent risks to life or safety. Mental Health Coordinating Council (MHCC) has consistently advocated for specialised, ongoing police training in mental health crisis response, with a strong focus on de-escalation, trauma-informed and culturally safe practice, and least restrictive approaches. We look forward to seeing the findings and recommendations from the Law Enforcement Conduct Commission’s consultation on mental health and policing in NSW.

NSW Mental Health and Wellbeing Strategy

Budget Estimates also provided an update on the new NSW Mental Health and Wellbeing Strategy.

The Mental Health Commission of NSW advised that its consultation has reached thousands of people and hundreds of organisations across the state, with the Commission expecting to provide the Strategy to the Minister before the end of this year.

The Strategy represents an important opportunity to set a longer-term direction for mental health and wellbeing in NSW. We will be looking closely at how it recognises the role of prevention, early intervention, psychosocial support and community-based care, as well as the contribution of community-managed organisations and people with lived experience.

Budget Estimates gives us an opportunity to move beyond announcements and examine how reform will work in practice. There was welcome progress last week, particularly the commitment to release the gap analysis and the implementation of the health-led crisis response.

MHCC will continue to engage with government on these issues and advocate for the experience and expertise of our members, the community-managed sector and people with lived experience to be reflected as this work progresses.