Media Release: MHCT welcomes stability in mental health funding, but calls for further investment

Media Release

MHCT welcomes stability in mental health funding, but calls for further investment

The Mental Health Council of Tasmania (MHCT) has welcomed the continuation of funding for community-managed mental health organisations in the 2026–27 State Budget, but says more investment will be needed to meet growing demand and address significant gaps in support.

MHCT CEO, Dan Vautin, said maintaining current funding levels was a positive outcome in a challenging budget environment, but it did not resolve ongoing pressures facing the sector.

“Maintaining funding is a better outcome than many had anticipated, and we acknowledge the Minister Archer’s continued support for the community-managed mental health sector,” Mr Vautin said.

“However, demand for support continues to grow, and this budget does not provide the additional investment needed to close the gap.”

A 2024 report jointly commissioned by State, Territory and Commonwealth Governments found that more than 10,000 Tasmanians aged 12–64 do not have access to the psychosocial support they need to stay well in their communities. Planned changes to the NDIS are expected to increase this number.

These supports are primarily delivered by community-managed mental health organisations, helping people stay well, avoid crisis, and remain connected to their communities, education, and employment.

“Community-managed mental health organisations are essential to a functioning and effective mental health system. They reduce pressure on acute services, including hospitals, but they are doing so under increasing financial strain,” Mr Vautin said.

“Short-term contracts and a lack of adequate indexation continue to undermine the sustainability of the sector.”

Despite limited resources, the sector continues to support thousands of Tasmanians each year. Without further investment, the gap between demand and access is expected to widen.

Mr Vautin said MHCT looked forward to working constructively with the Minister to close the gap, as key national and state reforms progressed.

“We appreciate Minister Archer’s acknowledgement of the important role of MHCT, through additional funding which will support us to build upon our vital policy and advocacy work. We look forward to working with her on the development and implementation of the next Rethink, National Mental Health and Suicide Prevention Agreement and Tasmania’s other long-term strategies,” he said.

“These are critical opportunities to ensure community mental health services are sustainably funded and able to meet the needs of Tasmanians now and into the future.”