NSW Budget fails to deliver for patients seeking mental health care
24 Jun 2025
Media release
Fifty-eight thousand people with severe and complex mental illness across New South Wales will continue to miss out on effective mental health care with today’s State Budget providing no extra funding for mental health services.
Despite the system being at crisis point, the NSW Government has not provided any new or additional funding for psychiatrists in the next financial year or forward estimates.
NSW Chair of the Royal Australian and New Zealand College of Psychiatrists (RANZCP), Dr Pramudie Gunaratne said NSW psychiatrists work in a system that is threadbare – this severely impacts patient outcomes and leads to burnout and moral injury among frontline clinicians.
“Tinkering around the edges is no longer sufficient. We need real long-term investment to address the crisis and ensure that we have a mental health system in NSW that includes the full spectrum of care from early interventions in the community, to crisis care in hospitals, and pathways for recovery,” Dr Gunaratne said.
“NSW has the lowest per capita spend on mental health services in Australia and there are large service gaps across the entire system which is putting enormous pressure on acute hospital-based services and emergency departments.
“While we welcome the modest funding initiatives relating to areas such as suicide prevention, homelessness, and workforce, this Budget falls well short of delivering on the urgent need for high-quality mental health services across the state.
With staff shortages at an all-time high, psychiatrists in NSW are under enormous stress and experiencing burnout and moral injury. When they see no solutions and investment in the system, it is not surprising that they are exiting the system as a last resort.
“As the psychiatry workforce crisis continues, large numbers of our current workforce are leaving the system and with them the experience and resources to train and mentor the next generation of psychiatrists.
“The NSW Government did not deliver for mental health in this Budget, but we are looking for a commitment from Premier Chris Minns and Minister Rose Jackson to stem the crisis and support mental health appropriately.
“The RANZCP is fully committed to working with the NSW Government to create a positive future for mental health and to help shape a psychiatry workforce that serves our communities now and into the future,” Dr Gunaratne said.
ENQUIRIES: For more information, or to arrange an interview call Dishi Gahlowt on +61 437 315 911 or email media@ranzcp.org.
The Royal Australian and New Zealand College of Psychiatrists is a membership organisation that prepares medical specialists in the field of psychiatry, supports and enhances clinical practice, advocates for people affected by mental illness and advises governments and other groups on mental health care. For information about our work, our members or our history, visit www.ranzcp.org.
In Australia: If you or someone you know needs help, contact Lifeline on 13 11 14 or www.lifeline.org.au or the Suicide Callback Service on 1300 659 467 or www.suicidecallbackservice.org.au.
In New Zealand: If you or someone you know needs help, contact Lifeline NZ on 0800 543 354 or www.lifeline.org.nz or the Suicide Crisis Helpline on 0508 828 865 or www.lifeline.org.nz/suicide-prevention.
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