Mental health was never de-institutionalized

It was just redirected to hospitals and prisons

The gap in psychosocial support for individuals with mental illness is not just wide—it’s a chasm. Despite decades of de-institutionalization and the NDIS, essential support systems have been discarded, leaving many people stranded without the help they require.

A Tsunami of Unmet Need

According to the Analysis of Unmet Need for Psychosocial Supports Outside the NDIS (2022-23), over 230,500 people aged 12 to 64 with severe mental illness are not receiving essential supports. This equates to a staggering 14.07 million hours of unmet need—far surpassing earlier projections. The Productivity Commission had estimated 154,000 people would require support, but new data reveals an additional 263,100 people with moderate mental illness also need assistance. The total unmet need now stands at 2.76 million hours for moderate mental illness alone-

• ??♂? 230,500 people aged 12 to 64 with severe mental illness are not receiving necessary support
• ? 14.07 million hours of unmet need for psychosocial support
• ?? 154,000 people originally estimated to need support (Productivity Commission)
• ? 263,100 additional people with moderate mental illness also requiring support
• ? 2.76 million hours of unmet need for moderate mental illness alone

The Choice is Ours: Do nothing and witness an exponential rise in hospital admissions, incarceration, and suicidality. Or act now to transform the mental health system into one that supports well-being, autonomy, and dignity for all.

No-brainer

The Productivity Commission’s Inquiry into Mental Health Report (2020) stresses that transforming the mental health system is a no-brainer. The benefits are undeniable—up to $20 billion annually. By implementing community-based supports, we can create a system that reduces hospitalizations and incarceration, promotes social participation, and ensures dignity and autonomy for those who need it most-

• ?? $18 billion annually in benefits from system transformation
• ?? $1.3 billion additional benefit annually due to increased economic participation
• ?? $17 billion of the benefits could be achieved by implementing identified priority reforms
• ?? $2.4 billion required for expenditure on reforms, generating $1.2 billion in savings per year
• ?? Given the unmet need for moderate mental illness (2.76 million hours), the total benefit could exceed $20 billion annually

We must act now. The gap in mental health services is not just a statistic—it’s a crisis that impacts individuals, families, and communities. We cannot afford to wait any longer.

Community Mental Health Australia is calling for foundational supports that are proactive and embed disability rights into every aspect of the mental health system. That means a strong focus on early intervention throughout the lifespan. People with lived experience must be central to the decision-making process. The role of lived experience should also be prioritized in government procurement, service delivery strategies, and bi-lateral agreements to ensure the system truly works.

Equally important is the creation of a well-supported workforce to drive system transformation. This includes empowering local, trauma-informed community mental health services, integrating social prescribing, and amplifying the role of peer workers and lived experience experts. It’s time to build a system that prioritizes people over institutions.

Have your say on Foundational Supports here