Only a fraction of the $1 billion in mental health funding promised by the Albanese government will be spent in the upcoming financial year, with just $16.5 million – or 1.65% – allocated for the 2025-26 period, according to newly revealed official costings. The remaining bulk of the funding, around $878 million, will not be deployed until the 2027-28 and 2028-29 financial years, as services are progressively rolled out.
Prime Minister Anthony Albanese’s announcement earlier this month outlined a sweeping plan to enhance access to mental health care, particularly for young Australians. The package, hailed as a “visionary” step by renowned psychiatrist and former Australian of the Year Patrick McGorry, includes:
- $225 million for 31 new and upgraded Medicare mental health centres.
- Over $200 million for 58 new or expanded Headspace centres.
- $500 million for 20 specialist care centres designed for young people with complex mental health needs.
- $90 million for over 1,200 training places for mental health professionals and peer workers.
These measures were widely praised by peak mental health organisations, who described the $1 billion investment as a much-needed effort to address the gaps in care for the one in five Australians affected by mental health disorders.
However, key details of the plan, including the rollout timeline, were not disclosed at the time of the 8 April announcement. These specifics were later revealed in a costing request submitted to Treasury and Finance on 17 April, which was published over the weekend.
The request shows that only $16.5 million will be spent in the 2025-26 financial year, with the majority of the funds – approximately 88% – reserved for the years 2027-2029 as the infrastructure and services are gradually developed.
Under the plan, five new Medicare mental health centres will open in 2025-26, followed by an additional 19 centres in 2027-28. The final three centres are not scheduled to be operational until 2028-29. These new centres will supplement the 61 Medicare centres already established by the Albanese government.
The expansion of Headspace services will also be a phased process, with new and upgraded facilities expected to be available between 2026-2029. Similarly, the government plans to establish 12 new specialist youth mental health centres in 2027-28. An additional eight centres will be revamped from existing Headspace services focused on early psychosis.
Labor has faced questions about the slow pace of the funding rollout, with Guardian Australia inquiring why so little is allocated for the first year of the plan. In response, a government spokesperson emphasized the importance of growing the mental health workforce, stating that the funding would support sustainable, long-term improvements in mental health care across the country.
Peter Dutton, leader of the opposition, has pledged $900 million for mental health under a Coalition government, including $500 million to reinstate the 20 Medicare-subsidised mental health sessions that were introduced during the pandemic, and $400 million for youth-specific services. However, the Coalition has not provided detailed costings for its proposed policies, promising to release them ahead of the 3 May election.
A spokesperson for Dutton’s team accused Labor of copying the Coalition’s mental health measures “at the 11th hour” after failing to adequately address the issue for three years. They described the government’s announcement as a “shameful con,” asserting that under a Coalition government, mental health and suicide prevention would become a “national priority,” with immediate actions to tackle long wait times and increasing demand for services.
Giancarlo de Vera, CEO of the New South Wales-based mental health consumer group Being, expressed concern that Labor’s mental health funding would be too slow to address the urgent needs of consumers. He noted that while Labor’s budget allocates funding for 500 peer workers, there is a significant demand for community-based, peer-led services, which he believes would better support people in staying connected with their communities and accessing the mental health care they require.
“Consumers want services that allow them to remain in the community and provide more choice in the support they access,” de Vera said, urging the government to reconsider its approach.
