Collaboration • Knowledge • Impact & Influence

25/26 State Budget

Mental Health Victoria has today released its Submission to the 2025/26 Victorian Budget.

Mental Health Victoria has engaged extensively with our Associates and Lived and Living Experience Advisory Group to develop the Submission to the 25/26 Victorian Budget. 

Victoria is approaching four years since the landmark Royal Commission into Victoria’s Mental Health System released its final report and set a high standard for transformational mental health system reform, inspiring both national and global attention. There have been significant achievements and milestones in the implementation of the mental health reform worth celebrating, including nation-leading investment of over $6 billion since 2021, the prioritisation and growth of the lived and living experience workforce, and the establishment of the Mental Health and Wellbeing Act 2022.

However, in the past 12 months, the pace of reform has slowed considerably. Consumers, carers, and those working in the sector express frustration over the lack of transparency in the reform roadmap. This absence of clarity, coordination, and consistent investment is stalling progress. 

Prioritise investment and outcomes tracking in the mental health and wellbeing system reform. 

Provide clarity and justification about the next steps and progress of the reform implementation.

MHV calls on the Victorian Government to:

  • Release a detailed plan that provides information about the next steps and progress of the reform implementation.
  • Release the Mental Health and Wellbeing Outcomes Framework (R1 RCVMHS) and provide funding over the forward estimates to enable its comprehensive implementation.
  • Release details on upcoming reform-based tenders as soon as possible to enable organisations to plan and obtain the resources required to make a bid.
  • Provide timely updates to the sector, including notification where substantive updates are not available, to avoid the sector feeling left in the dark.
  • Fund MHV to continue to facilitate collaboration between the clinical and community sector to inform and work alongside government in support of reform implementation.
Provide funding in the forward estimates to support the full and effective rollout of the 50 Locals across the State – including the previously identified next tranche in the 25/26 financial year.

MHV calls on the Victorian Government to:

  • Implement Recommendation 3 of RCVMHS in its entirety, to establish a responsive and integrated mental health and wellbeing system as a priority (R3 RCVMHS).
  • Fund the rollout of the next tranche of Locals in the 25/26 financial year, in Melbourne, Werribee-Truganina, Ballarat, Craigieburn-Sunbury, Ringwood, Horsham-Ararat, Warrnambool-Hamilton-Portland, Narre Warren, Northcote and Leongatha.
  • Provide funding in the forward estimates to support the full, effective and consistent rollout of the remaining Locals to total 50 across Victoria.
  • Release a detailed implementation plan with timeframes, consultation opportunities, and locations for the remaining Locals.
Provide funding for the Lived and Living Experience Agency.

MHV calls on the Victorian Government to:

  • Provide funding to implement recommendation 29 of RCVMHS in its entirety, to establish a new agency led by people with lived and living experience of mental ill-health or psychological distress (RCVMHS R29).
  • Release a detailed implementation plan with timeframes on how the Victorian Lived and Living Experience Agency will be designed in partnership with consumers, including VMIAC and SHARC, as well as how it will be resourced.
Provide information on which programs are funded through the Mental Health and Wellbeing Levy in the Budget Papers.

MHV calls on the Victorian Government to:

  • Identify which initiatives are funded through the Mental Health and Wellbeing Levy in the 25/26 Victorian State Budget and future State Budgets.
  • Report on the specific departments, outputs and/or mental health services or initiatives funded by the Mental Health and Wellbeing Levy in departmental annual reports.
Provide funding to enhance regional governance and regional service delivery.

MHV calls on the Victorian Government to:

  • Invest in standing up the Regional Boards to support integrated regional governance and provide equitable access for all Victorian communities seeking support (R4 RCVMHS).
  • Invest in regional housing and infrastructure to bolster opportunities for regional resource growth.
  • Collaborate with state governments and the Commonwealth to ensure border communities are not missing out on funding to deliver vital services.
  • Invest in non-government helpline services and connections to mental health and wellbeing services in rural and regional areas to support the growing need of communities (R6.5 RCVMHS).

Invest in initiatives to grow and retain the mental health and wellbeing workforce.

Provide funding for the development, implementation and evaluation of a new Mental Health and Wellbeing Workforce Strategy, which prioritises attraction and retention of mid-level and senior staff.

MHV calls on the Victorian Government to:

  • Provide funding for the development, implementation and evaluation of a new Mental Health and Wellbeing Workforce Strategy, which prioritises attraction and retention of mid-level and senior staff.
  • Provide funding to undertake a comprehensive analysis of the specific roles in critical shortage, including timelines for boosting those shortages.
  • Invest in organisational capacity to host placements, traineeships and cadetships to facilitate learning opportunities for students and graduates looking to enter the workforce.
  • Embed key capabilities across the public health system through funding for the Certificate of Postgraduate Training in Clinical Psychiatry.
  • Invest in leadership development opportunities for graduates and mid-level staff to bolster senior leadership across the Victorian mental health and wellbeing sector, including through partnerships with education providers.
Invest in embedding the Lived and Living Experience Workforce within the system.

MHV calls on the Victorian Government to:

  • Implement recommendation 28 in its entirety, to establish system-wide roles for the full and effective participation of people with lived experience of mental ill-health or psychosocial distress (RCVMHS R28).
  • Invest in continuity of funding over the forward estimates for best practice LLEW leadership development courses, such as the Monash College Future Skills Graduate Diploma of Management and Leadership (Lived and Living Experience).

Demonstrate commitment to human-centered care in the mental health and wellbeing system.

Prioritise investment that seeks to eliminate health inequity across the state.

MHV calls on the Victorian Government to:

  • Continue funding the Mental Health and Wellbeing Hubs until the 50 Locals are stood up and a fit-for-purpose transition plan is in place to support this change.
  • Engage with consumers, carers, peak bodies, and the overall sector to develop a plan that provides certainty and clarity about the implementation of the system navigation Royal Commission recommendations (RCVMHS R6, R7).
  • Provide multi-year funding for the Partners in Wellbeing Program to continue to provide system navigation support for Victorians.
Prioritise investment in an Elimination of Seclusion and Restraint Strategy.

MHV calls on the Victorian Government to:

  • Finalise the development of a strategy to reduce the use of seclusion and restraint (RCVMHS R54.3) and provide funding to enable its effective implementation, including for organisations and statewide mental health and wellbeing entities, to perform their roles in supporting this goal.
Invest in prevention initiatives as well as targeted supports for young people.

MHV calls on the Victorian Government to:

  • Provide a minimum of three years funding for the Youth Outreach Recovery Support (YORS) Program which will otherwise lapse on 30 June 2025.
  • Provide multi-year funding to continue the Youth Live4Life Program (lapsing 30 June 2025) and to expand its reach across more regional communities in Victoria.
  • Provide clarity about the consultation, planning and implementation of the system re-design for young people, including the 13 Infant, Child and Youth Area Mental Health and Wellbeing Services (RCVMHS R3.2.c).
  • Invest in operational resources for evidence-based research to inform the transformation of the children and young people mental health and wellbeing system.
Prioritise initiatives that create more culturally safe, accessible, and trauma-informed mental health and well-being services.

MHV calls on the Victorian Government to:

  • Release and provide appropriate funding to implement the Diverse Communities Mental Health and Wellbeing Framework.
  • Renew multi-year funding for the Diverse Communities Grants Program, which has been providing funding to deliver an extensive range of programs, direct services, and advocacy outputs to create a more diverse and inclusive mental health and wellbeing system.
  • Continue funding Foundation House to provide mental health support work for refugees and asylum seekers.
  • Provide adequate and sustained funding for Transforming Trauma Victoria to continue Victoria’s leadership in closing the significant gaps in trauma-informed and therapeutic care through capacity building, therapeutic services and research.
Invest in ongoing funding for suicide prevention initiatives.

MHV calls on the Victorian Government to:

  • Provide funding to support the implementation of the Victorian Suicide Prevention and Response Strategy, to be done in partnership with the consumers, carers and the sector.
  • Provide funding to SuicideLine Victoria, a service delivered by Lifeline, to support resourcing for the rising demand for support.
  • Provide funding for the LGBTIQA+ Aftercare program run by Mind to enable upscaling across regional communities.
Invest in the establishment of the 2,500 supported houses for adults and young people experiencing mental-ill health.

MHV calls on the Victorian Government to:

  • Publish progress and findings related to the implementation of RCVMHS R25, Supported housing for adults and young people living with mental illness.
  • Provide funding for the 2,000 dwellings assigned to Victorians living with mental ill-health in the Big Housing Build (RCVMHS R25).
  • Provide funding for 500 new medium-term supported housing places for young people aged between 18 to 25 who are living with mental ill-health and experiencing unstable housing or homelessness (RCVMHS R25).
Demonstrate commitment to the value of psychosocial supports through monetary investment.

MHV calls on the Victorian Government to:

  • Continue multi-year funding for the Early Intervention Psychosocial Support Response (EIPSR) Program, while negotiations and system re-design for psychosocial supports take place to ensure that no one is left behind.
  • Work with the sector, consumers, and carers to provide clarity on the rollout of the integrated mental health and wellbeing system, which is intended to capture psychosocial supports in both Locals and Area Mental Health Services (RCVMHS R3).
  • Ensure that investment in psychosocial supports is applied across the foundational supports policy development and mainstream service system.
  • Ensure funding for psychosocial supports is embedded as part of program commissioning decisions in response to the NDIS changes and rollout of Royal Commission system re-design recommendations (RCVMHS R3, R5).
Newsletter Icon

MHV News

Receive all the latest MHV news plus key headlines, events and opportunities from across the sector.