Canberra, Australia — The Federal Labor government has unveiled a $1 billion mental health package, promising sweeping reforms to Australia’s mental health system if re-elected. The ambitious pledge positions affordable, accessible mental healthcare as a central pillar of its re-election campaign.
The proposed investment includes $225 million to construct or upgrade 31 Medicare-funded mental health walk-in centres across the country. These facilities will provide free, immediate support to anyone in need — including those without a Medicare card.
More than $200 million is also earmarked to expand services for young people, with plans to build or upgrade 58 headspace centres. Additionally, $90 million will fund over 1,200 new training placements for mental health professionals and peer support workers, aimed at bolstering the sector’s struggling workforce.
The largest portion of the package — $500 million — will go toward establishing 20 youth specialist mental health centres, designed to assist young Australians with complex mental health needs, including eating disorders, personality disorders, and early psychosis.
Aiming to Relieve a Strained System
Prime Minister Anthony Albanese framed the announcement as a response to growing demand on Australia’s overstretched mental health system.
“I want everyone, and especially young people, to be able to access the mental health care they need,” Mr Albanese said in a statement. “This investment will ensure more Australians can access free, public mental health care — no matter their postcode or circumstances.”
Labor’s plan comes amid warnings from psychiatrists about burnout, understaffing, and rising waitlists, with experts describing the public mental health system as being on the verge of collapse. The package aims to ease the burden by increasing public mental health services and tailoring care across a spectrum of needs.
Sector Leaders Praise the Commitment
Carolyn Nikoloski, CEO of Mental Health Australia, called the pledge “a landmark investment” that would “fundamentally increase access to free mental health support across the country.”
“This is a ground-breaking announcement that recognises the serious mental health challenges faced by our communities,” she said.
Dr Patrick McGorry, Executive Director of Orygen and a leading figure in youth mental health care, also welcomed the announcement.
“This is a ground-breaking commitment from the government,” he said. “Australians will be relieved and grateful that a re-elected Albanese government will respond decisively to the youth mental health crisis.”
Jason Trethowan, CEO of headspace, similarly praised the package, saying it supports “increasing and innovative ways for headspace to provide support to more young people.”
Coalition Matches Focus on Youth Mental Health
Mental health policy has become a key battleground in the lead-up to the federal election, with the opposition Coalition also outlining substantial mental health investments.
Last month, Opposition Leader Peter Dutton pledged an additional $400 million for youth mental health services, while committing to reinstate 20 Medicare-funded psychology sessions under the Better Access Scheme, which were halved by Labor in 2022 after pandemic-era expansions.
Mental Health Australia welcomed the Coalition’s proposal as well, emphasizing that the high cost of care remains a major barrier for young Australians.
“Too many families and young people in Australia are forced to choose between essential mental health care and basic living costs,” Ms. Nikoloski noted.
The Coalition has also pledged to expand Orygen and enhance mental health services in rural and regional Australia.
Despite the political competition, both major parties appear aligned in prioritising youth mental health as a national issue. However, their approaches differ: the Coalition has focused on expanding access to individual psychology sessions, while Labor is investing in broader, system-wide infrastructure and services.
Health as a Key Election Issue
Both sides have also promised significant boosts to bulk billing, with Labor pledging to make 90% of GP visits free by 2030. The Coalition has largely matched Labor’s health policy funding to date, signaling a rare bipartisan consensus on the need for more accessible healthcare — particularly in mental health.
Labor argues that its walk-in Medicare mental health centres will alleviate pressure on existing schemes like Better Access by offering alternative, free support pathways.
With the election campaign intensifying, mental health has emerged as a major policy focus, reflecting growing public concern and sector-wide demand for reform. As Australians prepare to head to the polls, the promises made this election could shape the country’s mental health care landscape for years to come.
