Labor’s $1 billion proposal for free mental health care in the upcoming election
Mental health is at the forefront as Labor, Coalition, and the Greens reveal their plans for the system.
If re-elected, Albanese Labor government plans to invest $1 billion to expand Medicare-backed mental health services.
“We will implement this nationwide because quality mental health care can transform lives—and everyone should have access,” Prime Minister Anthony Albanese stated in a campaign video.
The proposal will introduce 31 new and upgraded Medicare Mental Health Centres in addition to the 61 already in progress. With a backing of $225 million, these centers will offer walk-in support without charges or referrals.
Labor will also allocate over $200 million to expand the headspace network, with 58 sites earmarked for expansion or development to assist young Australians.
A new investment of $500 million will establish 20 Youth Specialist Care Centers. These centers will cater to youth with complex needs like eating disorders, personality disorders, or early psychosis—those who fall into the “missing middle” between GP care and hospitalization.
To address the increasing demand, Labor is committing $90 million to train more than 1,200 mental health professionals and peer workers.
“No extensive bills, no complicated processes, just genuine assistance when needed,” Albanese remarked.
Coalition Emphasizes Youth Focus, Increased Sessions
The Coalition is presenting its own mental health package, with a commitment of $400 million aimed at young Australians and reinstating therapy sessions that were previously reduced.
Opposition Leader Peter Dutton stated that a Coalition government would double the number of subsidized sessions under Medicare, from 10 to 20, following Labor’s decision to halve them.
Greens Promise Universal Mental Health Care
The Greens were the first to propose an ambitious mental health election pledge, suggesting a Medicare-style model that guarantees universal access to care without fees or restrictions.
Their plan includes expanding the provider list, eliminating therapy session caps, increasing rebates, and recruiting 1,000 peer workers.
They also intend to establish free community clinics offering integrated GP, dental, and mental health services under one roof.
The large-scale plan will be funded by raising the tax rate on corporations, the party noted.
Mental Health System Struggling
These promises come at a time when the system is grappling to meet demand as more Australians report suffering from mental health conditions.
A recent survey by the Australian Psychological Society revealed that two-thirds of patients wait over 12 weeks to receive assistance.
One in three psychologists no longer accept new clients—a significant increase from one in five in 2021—due to overwhelming demand. This has created a growing “missing middle” of Australians whose needs are too complex for GPs but not severe enough for hospitals.
The national system, as noted by the Victorian Royal Commission, is “crisis-driven,” overly reliant on medication, and lacking ongoing support options.
Experts also warn of worsening workforce shortages, with a quarter of registered psychologists being over 55 years old, and the federal government meeting only 35% of its workforce targets for psychology training.
