Psychiatrists welcome budget boost and levy transparency, but more needed for mental health care

Queensland psychiatrists have welcomed new funding for mental health in the 2026–27 Queensland Budget, including measures to strengthen mental health, alcohol and drug services and improve transparency in how mental health levy funding is spent, while warning sustained investment is needed to address system-wide pressures.

The Royal Australian and New Zealand College of Psychiatrists (RANZCP) Queensland Branch said the Budget converts elements of the Government’s Hospital Rescue Plan into partly funded measures for mental health, including a $394.4 million package from the Mental Health Levy, but the scale of investment must be expanded.

The RANZCP Queensland Branch welcomed:

  • $394.4 million over four years, with $104.7 million in ongoing funding from the Mental Health Levy for mental health, alcohol and other drug services
  • Funding for 53 additional specialist clinicians to improve mental health assessment and treatment in emergency departments
  • $153.9 million for 30 new perinatal inpatient beds over four years, with $42.8 million in ongoing funding
  • $93.1 million over 4 years to streamline mental health care in emergency departments, with $28.5 million in ongoing funding
  • Renewed commitment to direct all revenue from the state’s mental health levy into mental health services

RANZCP Queensland Branch Deputy Chair A/Prof Nicola Warren said today’s budget announcement was an important step toward restoring confidence that mental health funding is being used as intended.

“Queenslanders deserve transparency about how mental health funding is spent and whether it is delivering meaningful improvements in care,” A/Prof Warren said.

“We welcome the commitment to ensure every dollar of the mental health levy is directed into mental health services.

“It is also deeply encouraging to see progress in areas like perinatal mental health and emergency care, but overall, the response is still too limited in its ambition for the level of pressure on the system.”

The RANZCP said Queensland’s mental health system continues to face three connected pressures: workforce shortages, under-resourced community services, and insufficient inpatient capacity. 

A/Prof Warren said any meaningful reform must address all three together.

”Mental health investment remains embedded within broader hospital reform, but the need for a comprehensive, standalone mental health strategy has never been clearer,” she said.

“And any serious mental health strategy must start with workforce. Without enough psychiatrists and mental health professionals, new funding announcements will not translate into real access to care.”

A/Prof Warren said gaps in community-based care continue to drive pressure across the health system.

“When people cannot access timely support in the community, closer to their home and loved ones, their condition can worsen and become more difficult to treat, increasing the likelihood they will present to emergency departments or require hospital care,” she said.

“If the Government is serious about reducing pressure on emergency departments and inpatient units, it must invest in community mental health services that operate when people actually need them, including outside standard business hours.”

The RANZCP also said additional inpatient capacity remains essential but must be supported by staffing and modern facilities.

“Queensland needs more mental health beds, and safer, contemporary facilities, but beds only improve access if they are properly staffed,” A/Prof Warren said.

“We cannot solve access block and exit block without growing the workforce and expanding community care alongside hospital capacity.”

The Branch has called for a comprehensive psychiatry workforce plan, alongside a significant expansion of community mental health services and inpatient capacity.

“Queenslanders deserve a mental health system that is accessible, properly staffed and able to respond whenever and wherever people need care,” A/Prof Warren said.

“Today’s announcements are a very crucial step forward, but ongoing investment and accountability will be critical to ensure Queenslanders can access the care they need before reaching crisis.”



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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