Psychiatrists say today’s budget delivers some notable investments in health, but mental health is a missing key piece of the puzzle that needs ongoing attention. 

• Budget 2026 makes some welcome investments in health, including crisis response and frontline services, but falls short of a significant uplift in mental health and addiction care
• Continued demand and workforce pressures mean mental health services remain under strain, despite steady overall health spending
• Concerns raised about time‑limited mental health initiatives not being continued, limited efforts to reduce health inequities and lack of clear funding for the new Mental Health Act implementation
• Psychiatrists say stronger, sustained investment is needed to improve access, particularly for people with severe and complex mental illness

Tū Te Akaaka Roa, the New Zealand National Office of The Royal Australian and New Zealand College of Psychiatrists (RANZCP) said the suite of health investments announced today must be matched with sustained investment in specialist mental health and addiction services. 

Mental illness and addiction are estimated to cost New Zealand about 5% of gross domestic product annually. In 2023, this meant more than $20 billion. Recent Ministry of Health data has confirmed New Zealand has fallen behind comparable OECD countries in health spending.

Dr Hiran Thabrew, Chair of Tū Te Akaaka Roa New Zealand National Office, said the Government had taken meaningful steps towards improving access to treatment and support for New Zealanders with severe and complex mental health conditions and addiction issues, including increased workforce and reduced vacancies, but the system is not where it needs to be yet. 

“This budget lays important foundations, particularly through system and infrastructure investment, but we are disappointed that it stops short of a more significant investment in mental health and addiction, particularly given the ongoing pressures on services and workforce that deserve a more ambitious response,” Dr Thabrew said. 

“We welcome the investment in services that catch people when they fall, such as ambulance services, emergency departments and co-response teams for 111 mental distress calls. They will make a real difference because they are often the first point of contact for tāngata whai ora experiencing acute mental distress. 

“However, it is equally important to bolster investment in services that catch people before they fall, through early intervention and prevention and better access to the wider supports that keep people well, including housing and community-based culturally safe care.” 

Tū Te Akaaka Roa highlighted concerns that some broader mental health initiatives are not receiving ongoing funding or are being scaled back as time‑limited programmes conclude, alongside a lack of clear funding for implementing the new Mental Health Act, which is expected to come into force next year if progressed in Parliament.  

It also noted the absence, and in some areas a reduction, of initiatives aimed at addressing Māori mental health and wellbeing in this budget, despite Māori continuing to experience significantly worse health and mental health outcomes.  

“Together, these factors risk reducing access to care at a time when demand continues to grow and underscore the importance of ensuring changes are implemented safely, effectively and with equity at their centre,” Dr Thabrew said. 

Dr Thabrew highlighted that severe and enduring mental illness and addiction don’t fit neatly into standard waitlist, surgery or treatment targets, and can too easily be overlooked in headline measures of system performance. 

“Tāngata whai ora deserve a mental health system that is planned, resourced and funded to meet them where they are, and that’s not possible without a significant increase in funding for the mental health and addiction system embedded as a central feature of subsequent health budgets,” Dr Thabrew said. 

“We know more people need help, but fewer are getting it, largely because we don’t have enough staff, and some groups, including Māori and Pasifika communities and young people, have disproportionately greater need or are missing out.  

“When support comes too late, people end up in crisis, which leads to worse outcomes and higher costs, so continuing to grow and retain the mental health workforce is critical for both people’s wellbeing and the wider economy. 

“It is also important to ensure that equity remains clearly visible in how funding is prioritised and delivered. Māori continue to experience significantly poorer mental health outcomes, and progress will depend on ongoing, targeted investment in early support, culturally appropriate care, and the broader conditions that support their wellbeing.” 

Tū Te Akaaka Roa is also concerned about the cuts to public service roles within Health New Zealand | Te Whatu Ora compounding pressure on an already stretched workforce at the frontlines.  

“When administrative support disappears, the mahi falls on psychiatrists, nurses, and other clinicians, leaving less time for the people waiting to be seen,” Dr Thabrew said. 

“Our members are doing extraordinary work in a system that is asking more of them every year. We are already seeing high burnout rates among psychiatrists5, and the sector cannot simply afford greater losses. 

“We will continue to work in partnership with Government, Health New Zealand | Te Whatu Ora and the wider mental health and addiction sector to advance our shared priorities and make accessible and equitable mental health care for all a reality.” 

For media inquiries, please contact: 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/services/suicide-crisis-helpline.