Psychiatrists back Productivity Commission’s call to fix the mental health plan and system
12 Nov 2025
Media release
Psychiatrists are urging federal, state and territory governments to act on the recommendations of a Productivity Commission review and work to fix Australia's disjointed and under-resourced mental health system.
The Commission’s final review of the Mental Health and Suicide Prevention Agreement, released today, has found the Agreement is "not fit for purpose" and has made little progress towards meeting its objectives, while our mental health system continues to turn its back on those in greatest need.
Royal Australian and New Zealand College of Psychiatrists (RANZCP) President Dr Astha Tomar said Australians can’t afford to wait any longer for governments to address the fundamental flaws in the mental health system.
“The Productivity Commission's bleak assessment confirms what RANZCP members have been telling us for years: despite three years of the current Agreement, the mental health system remains fragmented, under-resourced, and failing the people who need it most,” Dr Tomar said.
“Lack of specialised community services that offer the full suite of treatment and psychosocial support services to people early on in their life and mental health condition are causing more and more people to turn to EDs for crisis care.
“Meanwhile, mental health professionals complain of burnout and moral injury, while doing everything in their power to deliver essential and often life saving care on the frontlines.
“However, rapidly increasing mental health needs of the community can’t wait for governments to figure out who will do what – and neither can clinicians who are working with their hands tied behind their backs in under resourced and fragmented settings.”
Dr Tomar said the Commission's recognition of workforce shortages validates the College's long-standing concerns about the sustainability of mental health services.
“The Productivity Commission has rightly pointed out that the National Mental Health Workforce Strategy does not contain any ongoing funding commitments or clear accountability structures, an issue the RANZCP has also been raising,” Dr Tomar said.
“It is also absolutely unacceptable that suicide rates for First Nations groups have worsened under the current Agreement - this demands urgent action,” Dr Tomar said.
The College also emphasised the need for co-designing the next agreement with people with lived experience - an approach that was critically missing from the current framework.
“We must do better – a new agreement co-designed with consumers, carers, service providers, clinicians and mental health practitioners, with tangible goals and clear division of responsibilities between state, territory and Federal Governments is pivotal.
The College particularly supports the Commission's key recommendations:
- Immediate action on psychosocial supports outside the NDIS for 500,000 Australians with severe and moderate mental illness
- A new schedule to strengthen Aboriginal and Torres Strait Islander social and emotional wellbeing and progress on Closing the Gap Priority Reforms
- A new schedule addressing the co-occurrence of problematic use of alcohol and other drugs, mental ill health and suicidal distress
- Extending the current Agreement until 2027 to allow proper consultation with consumers and carers
- Making workforce sustainability a key measure of success
- Releasing the completed National Stigma and Discrimination Reduction Strategy
- Developing comprehensive national guidelines to meet the needs of Primary and Local Health Networks and support them in regional mental health and suicide prevention planning
“Mental ill-health costs lives. It costs livelihoods. It costs our economy billions every year. The evidence is all there – it you want to boost the nation’s productivity, you have to look after its people and their mental health,” Dr Tomar said.
“The solutions are clear: strengthen Aboriginal and Torres Strait Islander social and emotional wellbeing, properly fund the workforce strategy so we’re able to attract, train and retain more psychiatrists and mental health workers, ensure the 500,000 people missing out have access to the psychosocial supports they need to lead meaningful and productive lives, and give consumers and carers a genuine voice in designing the system that serves them.
"A mental health emergency waits for no one. We have the momentum, the evidence, and the political will to fix our mental health system, so the time to act is now.
"We're looking forward to working with all levels of government, consumers, carers and the rest of the sector to ensure Australians get the mental health care they deserve."
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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