Why community-based mental health supports matter

Demand for mental health support services continues to grow, yet too many people are unable to access the community-based care they need before reaching crisis.

While hospitals and public services remain essential, a sustainable mental health system also depends on access to strong community-based supports that provide prevention and early intervention, and help people get care earlier, stay well, and remain connected to their communities.

The evidence is clear

The Australian Productivity Commission found that investing up to $4.2 billion a year in mental health reform could generate annual savings of $1.7 billion[1], quality-of-life benefits of up to $18 billion (approximately $23 billion in March 2026 dollars[2]), and a further $1.3 billion through increased economic participation and productivity.[3]

The challenges facing NSW

Too many people are missing out on care beyond crisis

• 80% of people requiring psychosocial support in NSW are not receiving it, this equates to more than 166,000 people.[4]
• 1 in 5 adults in NSW experienced high or very high psychological distress in 2024.[5]
• NDIS approval rates for people with psychosocial disability have fallen by 62% over the past five years, reaching a national low of 25% before recent legislative amendments.

Workforce pressures are increasing

• Workforce shortages and sustainability consistently rank in the top three challenges identified by our members.
• Despite representing one-quarter of NSW’s mental health workforce, the community-managed mental health sector employs only 3,435 full-time equivalent workers.[6]
• A national study found 84% of psychosocial support staff identified recruitment challenges, 77% identified retention challenges, and 74% reported that burnout contributed to poor staff retention.[7]

Rising costs and inadequate funding jeopardises sector sustainability

• Funding and inadequate indexation consistently rank as the number one challenge faced by our members.
• Workers compensation premiums have increased by an average of 63% between 2021-22 and 2023-24[8] in addition to the new 1.7% Portable Long Service Leave Levy.
• Operating costs continue to rise, including commercial rents forecast to rise by around 6% per year[9], water and electricity costs expected to increase by around 5% (excluding inflation)[10] and 3% per year[11], respectively.

Put community-based mental health care first

As New South Wales approaches the 2027 State Election, now is the time to invest in community-based mental health and build a stronger, more sustainable mental health system.

The evidence is clear – community-based mental health care delivers better outcomes, yet too many people across New South Wales are still missing out on the support they need. As demand continues to grow, the opportunity to strengthen our mental health system has never been more important.

We need to invest where evidence shows the greatest long-term outcomes by supporting people to stay well before crises happen.

#CareBeyondCrisis