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Expanding Mental Health Services

Cook AP

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The Albanese Government is investing $888.1 million to strengthen Australia's mental health system with a focus on early intervention, accessible care, and workforce development.



The Labor Government's comprehensive mental health package addresses critical gaps in the current system by establishing a new digital early intervention service, expanding the network of Medicare Mental Health Centres, and taking decisive action to grow the mental health workforce.

This reform responds to recommendations from the Better Access evaluation and creates multiple pathways for Australians to access appropriate mental health support based on their needs.

From January 2026, a new national early intervention service will provide free cognitive behavioural therapy via phone or video without requiring a diagnosis or referral, expecting to support 150,000 people annually when fully implemented.

Simultaneously, the government is expanding the network of Medicare Mental Health Centres to 61 locations nationwide by mid-2026, with 31 already operational across all states and territories. These centres provide free walk-in mental health care with extended hours and no appointment needed, including access to psychologists and psychiatrists with no session limits or gap fees.

To address critical workforce shortages, the government has committed $109.1 million to expand the psychology training pipeline, funding 500 additional postgraduate psychology places at universities, 500 one-year internships for provisional psychologists, and 2,000 supervisor training sessions. Half of these opportunities are specifically allocated to priority areas including regional, rural and remote locations, First Nations communities, and culturally diverse populations.

Summary:

  • $588.5 million for a new digital early intervention service supporting 150,000 people annually

  • Network of 61 Medicare Mental Health Centres by mid-2026, providing free walk-in care

  • 500 additional postgraduate psychology places to expand the workforce pipeline

  • $71.7 million for Primary Health Networks to deliver multidisciplinary care for complex needs

  • Support for families and carers through new MBS items and establishment of national lived experience peak bodies

[1] https://www.health.gov.au/sites/default/files/2024-08/australian-government-response-to-the-better-access-evaluation.pdf

[2] https://www.health.gov.au/ministers/the-hon-mark-butler-mp/media/government-invests-in-future-psychologists-fast-tracking-workforce-expansion

[3] https://www.health.gov.au/our-work/medicare-mental-health-centres

[4] https://budget.gov.au/content/04-medicare.htm

[5] https://www.health.gov.au/ministers/the-hon-emma-mcbride-mp/media/more-than-30-medicare-mental-health-centres-now-open-to-provide-free-mental-health-care