The Victorian Government has announced a record $3.8 billion plan to rebuild the state’s mental health system.
Expanding current mental health services

The 2021-22 Victorian State Budget provides funding to implement recommendations from the Royal Commission into Victoria’s Mental Health System. 

The Royal Commission made 65 recommendations in its Final Report, in addition to the nine recommendations in the Interim Report.

This State Budget will fund system-wide reforms called for by the Royal Commission. A new Mental Health and Wellbeing Levy will apply to businesses with more than $10 million in wages nationally to help fund the reforms. 

The budget recognises the leadership of people with lived experience of mental illness or psychological distress. They will play a central role in planning and delivery of the reform agenda.

State Budget highlights include:

  • $1.5 billion for community-based care, so Victorians can access services closer to home.
  • $1.96 billion in mental health acute and emergency care, including more beds and expanded programs for people with higher levels of need.
  • $93 million in dedicated support for families and carers.

The funding will progress work on urgent priorities to improve treatment, care and support for all Victorians.

Aboriginal social and emotional wellbeing

  • $116 million to fund Aboriginal-led centres and services to provide culturally safe and appropriate care for Aboriginal people, families and communities. This includes a new Centre for Excellence in Aboriginal Social and Emotional Wellbeing, to be led by the Victorian Aboriginal Community Controlled Health Organisation (VACCHO).

Expanding current mental health services

  • $173.3 million to expand suicide prevention programs and services. This includes ongoing funding for the successful HOPE (Hospital Outreach Post-suicidal Engagement) program
  • $16.3 million to expand Youth Mobile Targeted Assertive Outreach teams, which provide support to young people in their homes or other settings. 
  • A total of 104 new acute mental health beds across the State, including 35 acute mental health beds specifically for Victorian women in need. 

Mental health systems strengthening and innovation

  • $18 million to establish the Collaborative Centre for Mental Health and Wellbeing.
  • $5 million towards establishing Victoria’s very first residential mental health service designed and delivered by people with lived experience. 
  • $1 million in funding to support the establishment of a new non‑government agency, led by people with lived experience, for people with lived experience.

Building the mental health workforce

  • $206 million to expand and better support our mental health workforce, including $40.7 million to boost lived experience workforces.

Mental Health Reform Victoria (MHRV) is responsible for implementing the Royal Commission’s interim recommendations.

Read more State Budget mental health highlights on the Health Department’s website

Read more about the State Budget across all portfolios on the State Budget website.