Under the National Mental Health and Suicide Prevention Agreement, the Australian Government along with all states and territories committed to undertaking further analysis of psychosocial support gaps outside of the National Disability Insurance Scheme.

The Psychosocial Project Group was established as a time limited group to progress this gap analysis. The outcome of their work will be used to inform future arrangements for provision of these supports.

Health Policy Analysis was selected as the primary supplier to lead the analysis, with assistance from the University of Queensland on aspects relating to the National Mental Health Service Planning Framework. MHCC CEO Dr Evelyne Tadros met with Health Policy Analysis and was involved in a number of workshops during 2023.

Through Community Mental Health Australia, Mental Health Australia, and the NSW Mental Health Alliance, MHCC advocated for the release of the report.

On 16 August 2024, Australian Health and Mental Health Ministers endorsed the report release.

Read the Analysis Report

View the Psychosocial Project Group website

See our Media Release

Update 18/06/2025

Mental Health Coordinating Council along with our sister state and territory peak bodies have co-signed a letter that is being led by Mental Health Australia, that was presented to the Health and Mental Health Minister’s Meeting on Friday 13 June calling for:

• National Cabinet to agree to a funding envelope for the 50:50 cost share arrangement to increase investment in psychosocial support over a 5-year period
• Commit to a public consultation process to design future psychosocial support arrangements

Despite Ministers formally hearing directly from people with lived and living experience for the first time alongside sector representatives, we are left with another round of well-meaning statements and deferred action.

Ministers affirmed shared responsibility for psychosocial supports and promised to maintain current funding, yet no new investment was announced to meet the needs of the nearly half a million people currently missing out.

Mental Health Coordinating Council continues to advocate for a 30% increase in investment for community-based services to expand access and ensure people living with a psychosocial disability can access the supports they need to live well in the community.

We call on the Psychosocial Research Group to release the plan to meet the unmet need of half a million Australians and we advocate for the action plan to be quantified and for each respective state and territory government to work with the Commonwealth to invest in and turn intentions into action and ensure no one is left behind.

Update 11/04/2025

Design of new psychosocial supports
The Commonwealth, state and territory governments continue to work on re-investment in psychosocial support services outside the NDIS, following the release of the Analysis of unmet need for psychosocial supports outside of the National Disability Insurance Scheme in 2024. This work is progressing through an intergovernmental working group: the Psychosocial Project Group. Consultations undertaken in 2024 and early 2025 have informed an outline of the plan that the Department of Health and Aged Care will take to the next joint meeting of Health and Mental Health Ministers (likely in June 2025).

PHNs to deliver multidisciplinary care for patients with complex needs
A new measure was announced in the 2024 Federal Budget, “Multidisciplinary care for patients with complex needs”. This new measure provides funding for select Primary Health Networks (PHNs) to commission services to support people with severe and/or complex mental health needs via clinical and non-clinical supports, including care coordination and navigation, case management, brief interventions, psychosocial support and social prescribing. PHNs have not yet been advised of the EOI process to nominate for this funding opportunity.

Update 16/08/2024

Following united advocacy efforts from key mental health organisations and peak bodies including MHCC, the Analysis of unmet need for psychosocial supports outside of the National Disability Insurance Scheme – Final Report was launched on 16 August 2024 at the landmark Health and Mental Health Ministers Meeting with all states, territories and the Australian Government.

The report estimates in 2022-23, 493,600 people (aged 12-64 years) with severe and moderate mental health challenges across Australia had an unmet need for psychosocial supports.

Australian Health Ministers have released a joint statement on the report noting the implications for future reform and investments in psychosocial supports, in line with the National Mental Health and Suicide Prevention Agreement’s commitments and taking into consideration the broader reform landscape. Ministers remain committed to partnering with the mental health sector, including people with lived and living experience and First Nations Australians, on the design and implementation of psychosocial supports.

Update 17/04/2024

This analysis was originally expected to be completed by March 2024. MHCC understands consultations on this work have been completed nationally and with every State and Territory over February to March 2024, with an interim report considered by Senior Officials. The final analysis is now anticipated to be completed in mid-May 2024 to allow time to incorporate feedback, including from the consultations, and further data and analysis. MHCC is advised that publication of the unmet need analysis findings will be a matter for all governments to consider when the analysis is completed.

Update 04/03/2024

HPA conducted the second workshop on 26 February 2024. HPA continue to quantify the unmet psychosocial needs for people with mental health conditions outside of the NDIS.

The session provided an update on the methods of estimating levels of need for psychosocial support for the state/territory population as determined by the National Mental Health Service Planning Framework (NMHSF). Data was also presented on: NDIS participation, state and Commonwealth (including PHN) funded psychosocial support services, assumptions made in analysis, interpretations and potential gaps.

MHCC expressed concerns around the limitations of the NMSPF which is unlikely to include clinical service provision often offered within psychosocial support.

Update 01/02/2024

Health Policy Analysis through NSW Ministry of Health is facilitating a workshop on the 26th of February which MHCC’s CEO will attend. HPA has completed analysis of current service activity and estimates of need and is seeking feedback from stakeholders. The workshop’s purpose will be to:

A. Consider NSW data related to service activity including:

i. Overall initial estimates for NSW
ii. Assumptions made in interpreting data
iii. Identifying sensitivity analysis that may be required

B. Present estimates of need for psychosocial support at a regional level within NSW as estimated using the National Mental Health Services Planning Framework.

C. Present the data visualisation tool to obtain feedback on design and functionality.

Update 14/12/2023

Here you can find a link to the Consultation Workshop 1 summary report as well as other key project updates.

The National Mental Health and Suicide Prevention Agreement reflects the shared commitment of the Commonwealth, state and territory governments to work together to improve mental health outcomes for all Australians, reduce suicide rates toward zero, and strengthen the sustainability and quality of mental health and suicide prevention services across the nation.

The Australian Government has commissioned the Productivity Commission (PC) to conduct the final review of the National Mental Health and Suicide Prevention Agreement. The review will evaluate the impact of programs delivered under the Agreement and provide recommendations to improve the effectiveness, accessibility, affordability, and safety of the mental health and suicide prevention system.

In April, Productivity Commissioners Selwyn Button and Stephen King identified several key gaps to date:

• The absence of a coordinated national approach to stigma and discrimination
• The need for an overarching national strategy for the mental health system
• Ongoing workforce challenges
• Insufficient focus on prevention of mental ill-health and suicide
• The need for greater consistency in planning, data collection, and evaluation

Mental Health and Suicide Prevention Agreement Review

Update 31/07/2025

Mental Health Coordinating Council has provided a submission following the Productivity Commission’s National Mental Health and Suicide Prevention Agreement Review’s Interim Report.

We acknowledge the alignment of the Productivity Commission’s Interim Report findings with longstanding sector concerns, particularly the systemic issues identified in previous analyses. Our response expresses grave concern about the lack of progress to address unmet need for psychosocial support – a still as-yet undelivered joint commitment from the original agreement, and stated that we categorically do not support a delay without immediate government action towards addressing this gap.

Update 25/06/2025

An Interim Report released on 24 June 2025 outlines the Productivity Commission’s draft recommendations and initial findings. It highlights a fragmented system that does not address the needs of nearly 500,000 people living with psychosocial disability. Additionally, delays in implementing the National Stigma and Discrimination Reduction Strategy, workforce shortages, governance challenges, and the absence of comprehensive national guidelines for regional commissioning and planning, further undermined a robust mental health system.

The Productivity Commission welcomes feedback from individuals and organisations on the Interim Report, with submissions due by Thursday 31 July 2025. Public hearings will take place in August 2025, and the final report is scheduled for release by 17 October 2025.

The Department of Health and Aged Care is reviewing the Primary Health Network (PHN) Program to ensure its business model remains fit-for-purpose in a changing health landscape. While the policy settings have remained largely unchanged since the program’s inception, the review aims to align the program with current Government priorities of improving the efficiency and effectiveness of health services, particularly for those with severe and enduring mental and physical health challenges, and enhancing service coordination, access, and quality support.

The Department is formulating an improved Business Model and Mental Health Flexible Funding Model that represents best practice and offers ways in which mental health and suicide prevention can advance, driven by evolving societal needs, technological innovations, and a deeper understanding of mental health.

Mental Health Coordinating Council’s submission highlights ways in which the Mental Health Flexible Funding Stream could adapt to support these changes effectively.

The Department of Health, Disability and Ageing is currently finalising the report prepared by consulting firm Boston Consulting Group.

Visit the Department of Health and Aged Care page

Read our submission

Minister for the National Disability Insurance Scheme Bill Shorten announced a review of the National Disability Insurance Scheme in October 2022. 

The NDIS Review is looking into the design, operations and sustainability of the NDIS. It will also look at ways to make the market and workforce more responsive, supportive and sustainable.

MHCC provided a response to the NDIS Review, supporting a submission made by the Australian Psychosocial Alliance. Our submission draws out additional areas of interest, including issues around regulated and unregistered providers, workforce issues and concerns around gaps in the availability of Tier 2 Psychosocial Support Programs.

Read MHCC’s submission to the NDIS Review

Update 02/06/2025

The Foundational Supports rollout from 1 July 2025 has been delayed due to unresolved negotiations over scope, costs and shared responsibilities across governments.

The summary of findings from consultations has yet to be released.

Update 31/03/2025

Consultations (on General Supports) were undertaken by Social Deck in December 2024.

25% of people in NSW with a psychosocial disability who applied to the NDIS as new participants were accepted, down from 51% in October 2022.

4% of the people in NSW who applied had a psychosocial disability, down from 9% in 2022-2023.

Current focus is on design of foundational supports for children under 9 with autism and developmental delay, because providing early support gives children the best possible start in life.

Slower to progress is the design of general foundational supports for all other people with disability under 65 and their families, carers and kin to improve wellbeing and increase access to disability services outside the NDIS.

Commonwealth is working with state and territory governments, and the NSW Department of Communities and Justice with the Minister for Families and Communities and Minister for Disability Inclusion, the Hon. Kate Washington.

A summary report from the consultations is expected (with a delay to the advertised release of early 2025). Governments will use the feedback received from the community to inform the design of Foundational Supports. It is still advertised and expected that some Foundational Supports will commence later in 2025, and implementation will be phased.

Update 04/09/2024

The Australian Government has commenced public consultation on the design of General Foundational Supports for people with disability under 65 years. General supports include information and guidance, peer supports and capacity building that help people engage in the community and make decisions about matters that affect them.

Targeted Foundational Supports which include psychosocial disability supports, aimed at people with disability who are not eligible for the NDIS, will be open for consultation commencing October.

Public consultation with people with lived experience and their families, carers, disability organisations, along with the broader sector will help inform what additional supports should look like and how they can best be delivered in the future.

The Department of Social Services is hosting a webinar on the different types of foundational supports and upcoming opportunities to contribute to the national public consultations. The webinar takes place Friday 20 September 12:00pm-1:00pm (AEST), register here.

There are many ways to take part in upcoming consultations, including:
• Attend an online or face-to-face event
• Add to an Ideas Wall
• Complete an online questionnaire or discussion paper submission.

Visit DSS Engage for more information.

Update 01/02/2024

The Federal Government has announced that it will invest $11.6 million over two years to develop and implement the Foundational Supports Strategy, a key recommendation from the NDIS Review Final Report in developing a unified system of support for people with disability (NDIS participants and non-participants alike). The National Cabinet had previously agreed to share the costs for these new foundational supports 50:50.

Funding from this Government investment will go towards support and design consultation on accessing the NDIS, developing the best practice model for early childhood supports, improving ways to access and pay for supports, and increase home and living options.

Assessment of unmet need for psychosocial support outside the NDIS in all jurisdictions is still targeted for completion in March 2024. Consideration of The Strategy is scheduled for the second half of 2024 by the National Cabinet.

Mental Health Coordinating Council will continue to consult with members, interested stakeholders and other advocacy groups to ensure that our position represents consensus on Psychosocial Support needs both inside and outside of the NDIS. Regular updates on the most significant ongoing reviews, projects, and gap analyses for the sector will be added to this Information hub for ease of reference

Update 07/12/2023

The Final Report from the NDIS Review has been released. The Review makes 26 recommendations with 139 actions to change the system that supports people with disability.

You can read the NDIS Review Final Report in full here.

The Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability was established in April 2019 in response to community concern regarding reports of neglect, abuse and exploitation of people living with disability. The Disability Royal Commission heard about the experiences of thousands of people and those closest to them to understand past processes and facilitate the ongoing protection and best practices in reporting and responding to violence, abuse, neglect and exploitation of people with disability.

The Commission’s final report was presented to Parliament in September 2023 and made 222 extensive recommendations designed to achieve significant improvement in the lives of people with disability.

On 31 July 2024, the Australian Government, in collaboration with all states and territories, responded to the final report. Of the 222 recommendations, 172 fell under the Australian Government’s primary or shared responsibility with the states and territories. Out of these, 13 were accepted in full, 117 were accepted in principle, 36 are under consideration, and 6 were noted.

The recommendations embed human rights of people with disability in government policy and practices and ensure respect for their inherent dignity and individual autonomy. If implemented, these recommendations will help prevent violence against and abuse, neglect, and exploitation of people with disability.

Update 19/06/2025

In December 2024, the Disability Royal Commission released a National Interim Update, with contributions from all levels of government.

Biannual reporting on the implementation of all 222 recommendations from the Disability Royal Commission commenced from June 2025.

The Department of Communities and Justice sought feedback on the Restrictive Practices Legislative Framework. Mental Health Coordinating Council made a submission in response, welcoming stronger safeguards and oversight of restrictive practices. The submission emphasised the need to prioritise deterrence of these practices, promote positive behaviour support, and, most importantly, adopt the elimination of restrictive practices as the overarching goal of the legislative framework.

Update 07/08/2024

Following the Australian Government’s announcement on accepting 13 recommendations out of 222 from the Disability Royal Commission’s final report, MHCC has identified 74 key recommendations that align with the actions in our Summary report to achieve transformational reform and meaningful outcomes for people living with mental health challenges and psychosocial disability. These recommendations will also strengthen the community-managed mental health services that support them. Alarmingly, we found only seven of these recommendations have been fully accepted. Read more here.

Update 08/11/2023

Mental Health Coordinating Council has written an Overview and Summary of the Disability Royal Commission in relation to people experiencing mental health conditions and living with psychosocial disability. You can read it in full here: Unpacking the Disability Royal Commission.

The Royal Commission into Defence and Veteran Suicide was established on 8 July 2021 to look into the high rates of suicide in Defence and veteran communities and make recommendations to government.

Defence personnel (especially ex-serving members) were found to have significantly higher suicide rates than the national average – up to 42% higher for men and over 100% for women.

Veterans and their families had called for a royal commission for over a decade. Previous internal reviews lacked transparency, and evidence was often dismissed or inadequately addressed.

Royal Commissioners Nick Kaldas APM, the Hon James Douglas KC, and Dr Peggy Brown AO delivered their interim report  to the Governor-General on 11 August 2022, followed by the final report on 9 September 2024, which includes 122 recommendations for reform. The report represents the most comprehensive inquiry ever conducted into suicide and suicidality in the Defence and veteran communities.

The Inquiry revealed deep-seated issues within the culture of the Australian Defence Force – where mental‑health disclosure was stigmatised, leadership failed to prioritise wellbeing, and support systems were ineffective or inaccessible.

On 2 December 2024, the Government released its response to the Royal Commission’s Final Report, accepting the vast majority of its recommendations and committing to a broad and significant program of reform to address the issues identified.

Read the Royal Commission’s Final Report 

See the Australian Government’s response 

Public policy consultant and Black Dog Institute Board Member David McGrath recently conducted an Unmet Needs Report for Psychosocial Support Services in South Australia. NSW Ministry of Health has contracted David McGrath to conduct a similar analysis in NSW. 

The NSW Mental Health Branch, Ministry of Health has engaged David McGrath to conduct the NSW Psychosocial Research Project, which will examine unmet need for psychosocial supports in NSW outside of the NDIS.

A Psychosocial Research Project Advisory Group has been set up as part of the review to:

• provide advice to the consultant on which psychosocial supports should be included in the NSW Psychosocial Research Project
• test assumptions on the methodology for the mapping and unmet needs analysis proposed by the consultant
• review and provide feedback on analysis and reports prepared by the consultant.

MHCC’s CEO Dr Evelyne Tadros sits on the NSW Psychosocial Research Project Advisory Group and will inform this process. It is understood the work of the gap analysis will help inform the upcoming procurement process for the Housing and Accommodation Support Initiative (HASI) and Community Living Supports (CLS) psychosocial support programs.

Read the SA gap analysis report

Update 27/11/2023

NSW Psychosocial Research Project key funders have been contacted to provide information on the psychosocial support programs they fund with responses due 1 December 2023. Q&A sessions for LHD and PHNs will then be scheduled before the end of the year.

Once funders have responded, NSW Psychosocial Research Project Advisory Group members will be consulted on which programs/supports they think should be in scope for the research project. Gap analysis and modelling between the current supports and demand (as identified through the National Mental Health Services Planning Framework) will then be undertaken.

Preliminary findings will be shared with the Advisory Group before discussion takes place in late 2023 or early 2024.

The NSW Legislative Council Inquiry was established in July 2023 to inquire into and report on the equity, accessibility and appropriate delivery of outpatient and community mental health care in NSW.

The Inquiry examined issues ranging from workforce to access to outpatient mental health services, Community Treatment Orders, benefits and risks of online and telehealth services, accessibility and cultural safety of mental health services for First Nations peoples, culturally and linguistically diverse communities, LGBTQIA+ communities, people with disability and young people. The inquiry also looked at alternatives to police for emergency responses.

The Upper House committee tasked with the Inquiry, tabled the Inquiry Report on 4 June 2024. The Report provided 39 recommendations to improve outpatient and community mental health care in New South Wales. The NSW Government announced it would support 24 recommendations without new investment commitments, 8 supported in principle, and 7 noted.

The report recommendations align with a number of priorities that Mental Health Coordinating Council has advocated in its submission for significant investment in mental health and psychosocial services and programs, and a sustainable workforce. It also brings together the collective priorities identified across several state and national reviews.

In response, Mental Health Coordinating Council’s Pre-Budget Proposal 2025-2029 focused on quantifying the NSW Ggovernment’s supported initiatives and responses to the Inquiry Report, going beyond high-level recommendations to provide detailed actions, targets and investment estimates for the NSW Government to action and implement, and bring about the reforms required for meaningful change.

Read the Inquiry report

Find out more about the NSW Mental Health Inquiry

This gap analysis of ambulatory care and clinical services was proposed by the Mental Health Alliance to examine specialised mental health care provided by public community mental health care services and hospital based out-patient ambulatory care services. It does not include psychosocial services.

The review was endorsed and prioritised by Mental Health Minister Rose Jackson and sponsored by Deputy Secretary Health System Strategy and Patient Experience Deb Wilcox.

Minister Jackson has indicated she would like to reduce and avoid duplicating services funded federally, and is undertaking this comprehensive analysis of clinical service gaps. In addition, the Minister is expecting the NSW Psychosocial Research Project to identify deficiencies in public community-based mental health services and where money should be spent.

Find out more about the NSW Alliance for Mental Health

Update 15/5/2024

Stage 1 included the release of the NSW Community Mental Health Services Priority Issues Paper on 14 May 2024, as requested by the NSW Mental Health Alliance. Prepared by NSW Health, it was developed in consultation with a project steering group including former NSW Mental Health Commissioner Catherine Lourey, Deputy NSW Mental Health Commissioner Tim Heffernan, and former NSW Branch Chair of the Royal Australian and New Zealand College of Psychiatrists, Dr Angelo Virgona.

People in NSW are experiencing increasing levels of mental health challenges with 17% of adults experiencing high levels of psychological distress, and 41% of people aged 16 to 85 years experiencing a mental ill-health in their lifetime. The National Mental Health Services Planning Framework estimates that approximately 200,000 people in NSW (aged 25 to 64 years) have some form of severe mental ill-health requiring care. Given the high level of mental health concerns, an effective community mental health care system has never been more important and is critical to the improvement of mental health outcomes in NSW.

The data, as well as feedback from stakeholders, suggests that the current community mental health care (CMHC) system is experiencing significant challenges in meeting increasing service demand. From 2010-11 to 2020-21, NSW has been providing community mental health care to an increasing number of people (approximately 146,000 in 2020-21) with more client contacts (around 3.4 million in 2020-21). However, in the same time period, the number of fulltime CMHC workforce positions in NSW per 100,000 people has declined (and is the second lowest nationally at 48.9). In the past 5 years, the average number of treatment days per patient and service contacts also decreased in NSW, although both are high on a national scale. Although NSW spends a considerable amount on CMHC, with a 13% increase in funding over the past 10 years, comparative analysis shows that NSW’s per capita spend is the second lowest nationally.

Stage 2 will be to undertake further quantitative work analysing the gaps in the mental health system using the National Mental Health Planning Framework as the most relevant tool available.

Led by The Honourable Justice Richard Beasley, the Special Commission of Inquiry into Healthcare Funding conducted a major review of the NSW public healthcare system and how it is funded.

The delivery of the Report follows almost 70 hearing days and an extensive consultation with health policy experts, patients, consumers, and NSW Health staff involved in the delivery of care at every level. The report findings underscores the daily pressures, inequities, and unsustainable gaps in care that frontline mental health workers and services have navigated for years.

Mental Health Coordinating Council contributed to this important process through our formal submission in November last year and meeting with the Commission shortly after to raise concerns about the challenges of procurement processes for community-managed organisations. It’s encouraging to see some of these issues acknowledged in the final report, particularly the call for improved procurement, funding transparency, and greater inclusion of community-based providers in health system planning.

Read the Inquiry report