2026/27 budget breakdowns: Mental health commitments sustaining status quo

  
Thursday 21 May 2026

  • The 2026/27 WA State Budget was handed down on 7 May and the Federal Budget was delivered on 12 May.
  • In the state budget, a new, targeted intervention will provide another alternative to emergency departments.
  • Due to delays in negotiating a new National Mental Health and Suicide Prevention Agreement, both budgets lacked a focus on commitments that would progress much-needed reform.

The state and federal budgets have been delivered, and both contain commitments that will maintain continuity of mental health supports while work continues on a new National Mental Health and Suicide Prevention Agreement (National Agreement).

WAAMH welcomed announcements in the state budget that addressed some immediate challenges and uncertainties for service providers; continued funding for important partnerships with public mental health services; and delivered targeted new investments in the form of an alternative to emergency departments.

Another positive outcome of the state budget was rental reforms, including an end to no grounds evictions, which will have a significant impact on the mental health and wellbeing of the 700,000 renters in WA.

Meanwhile, the federal budget committed to maintaining existing critical services, while also focusing on recently announced changes to the NDIS set to save $37.8 billion over the next four years.

WAAMH’s CEO, Taryn Harvey, said that with demand for mental health supports increasing and young people naming mental health as the top issue on their minds, the negotiations for the new National Agreement would be critical for progressing much-needed reform.

“While cost of living relief is of course important right now, without further progress on systemic mental health reform, the sector and governments will continue to play catch-up to meet community needs,” she said.

“The 500,000 Australians across the country who urgently need access to psychosocial supports have been waiting far too long already.”


Key mental health commitments in the state budget:

  • A new 10 bed Crisis Recovery and Intervention Support Service to provide another alternative to hospital admission.
  • $52.3 million over 4 years to secure the future of the Active Recovery Teams Program, delivered in partnership by public and community-based mental health and AOD services.
  • An additional $43.8 million over 4 years to help maintain existing community-based mental health services.
  • $29.7 million to extend suicide prevention initiatives around the State.
  • $48.6 million towards Social and Emotional Wellbeing services, supporting the wellbeing of Aboriginal people.
  • $5.2 million to address family and domestic violence.

 

Key mental health commitments in the federal budget:

  • $277.5 million in 2026-27 to maintain existing critical services.
  • $2 billion to establish the Thriving Kids program as part of the $5 billion Foundational Supports commitment that will be matched by states and territories.
  • The National Mental Health and Suicide Prevention Agreement will be extended for an additional year, to ensure service continuity while new arrangements are negotiated.

 

To view a full breakdown of the mental health commitments in the state budget, visit the Mental Health Commission’s website.

For further information about mental health commitments in the federal budget, see Mental Health Australia’s budget summary.