New South Wales mental health requires $600 million annual funding boost

Confidential ministerial briefing notes released through parliament reveal that New South Wales requires approximately $600 million annually to address a shortfall in frontline public mental health staff. This estimate, provided by NSW Health to Mental Health Minister Rose Jackson in late 2024, covers only clinical and support staffing and excludes broader operational costs.

In addition to staffing, departmental advice suggests that infrastructure investment exceeding $700 million would be necessary to support an expanded workforce. These findings represent the first public disclosure of the government’s assessment regarding unmet demand in the sector, which has faced a crisis including mass resignations of psychiatrists.

The documents also suggest efforts were made to manage the release of information regarding the Review and Planning for Mental Health Services (RaP-MHS) report. Internal advice warned that disclosing a gap analysis highlighting the severity of resource shortages could cause reputational damage to the Minns government.