Budget 2026-27 provides important continuity but a clearer pathway is needed for long-term mental health reform

The extension provides important continuity for people, services and providers who rely on the mental health system. As one of the key mental health measures in Budget 2026-27, it represents a practical step, maintaining current arrangements while further reform is developed.  

However, meaningful reform must not be limited to short term priorities. It must be guided by a clear and shared long-term vision for Australia’s mental health system. Future funding should move beyond responding to immediate gaps or maintaining the status quo and instead support the development of a system capable of delivering sustained improvements in outcomes.  

The extension to 2027 provides a valuable opportunity to progress both near-term priorities and to build commitment across governments and sector to develop a clear national vision for mental health in Australia as part of the next Agreement. 

David McGrath, CEO of the National Mental Health Commission, said “the extension provides certainty, but underscores the need to define what comes next.” 

“To achieve meaningful change, we now need a shared national vision defined by all parties working together and a clear set of priorities that deliver on that vision. This is about moving beyond short-term fixes to a system that is coordinated, accountable and focused on measurable outcomes for people.” 

Accountability across the system is essential. As the body responsible for assessing system performance, the National Mental Health Commission emphasises that, while the extension provides continuity, the next Agreement must move beyond short-term priorities and set a clear, shared pathway for a mental health system that continues to strengthen over time through coordinated effort across the sector - one where success is clearly defined and measurable. 

The Commission also welcomes the Government’s focus on addressing intergenerational inequality through broader economic reform in this Budget. These measures recognise that mental health outcomes are shaped not only by services, but by the economic and social conditions that influence people’s ability to thrive over time.  

Sustained improvements in mental health require both service system reform and action on the underlying drivers of wellbeing.

National Mental Health Commission media contact  
Email: news@health.gov.au  
Telephone: 02 6289 7400