Psychiatrists back Productivity Commission’s call to fix the mental health plan and system
27 Jun 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 'alienating, inadequate, ill-informed, and under-resourced’ mental health system.
The Commission’s interim review of the Mental Health and Suicide Prevention Agreement, released this week has found the existing plan 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.
While the current Agreement provides a vital framework for improving mental health outcomes, the Royal Australian and New Zealand College of Psychiatrists (RANZCP) agrees that it is limited in scope because it does not address key barriers to reform including workforce shortages.
College President Dr Astha Tomar said the review is a massive wake-up call for governments to address the fundamental flaws in Australia's mental health system with consumers, carers, service providers and the practitioners delivering care at the frontlines.
“The Productivity Commission's bleak assessment confirms what RANZCP members have experienced firsthand: 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.
“In fact, members tell us that the situation has only deteriorated since, as workforce shortages continue to bite, and community need for mental health treatment and care rapidly increases.”
Dr Tomar said the Commission's recognition of workforce shortages validates the College's long-standing concerns about the sustainability of mental health services.
“Time and again, we’ve said that it’s the people who make up the system. Without those at the frontlines, hospitals and clinics are just empty buildings and rooms,” Dr Tomar said.
"Without addressing the workforce crisis, we cannot deliver the integrated, person-centred care that Australians deserve.
“The Commission is right that this must be a priority measure of any future agreement's success, and we wholeheartedly support its recommendation to implement the National Mental Health Workforce Strategy with clear funding commitments and accountability structures.”
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
- 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.
"The Commission is absolutely right that Aboriginal and Torres Strait Islander social and emotional wellbeing must have its own dedicated schedule in the next agreement. The Commission found suicide rates for First Nations groups have worsened under the current Agreement - this is completely unacceptable and 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.
In its submission to the Productivity Commission, the College had called for a more focused and actionable approach to ensure the system is adequately resourced and responsive to emerging challenges, with greater accountability and clearer responsibilities between different levels of government, as well as health and mental health ministers.
“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: 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."
For all other expert mental health information visit Your Health in Mind, the RANZCP’s consumer health information website.
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.
More news & views
The Royal Australian and New Zealand College of Psychiatrists (RANZCP) Queensland Branch says the St...
Fifty-eight thousand people with severe and complex mental illness across New South Wales will conti...
The RANZCP SA Branch has welcomed the SA Government's recognition that more needs to be done to supp...