The Federal Labor Party has unveiled a $1 billion mental health package ahead of the May 3 election, promising expanded services and a stronger workforce — but general practitioners warn it may come at the cost of coordinated care.
Prime Minister Anthony Albanese described the funding as “a central part” of Labor’s health strategy, with the bulk aimed at improving mental health support for young Australians.
Key initiatives include:
$500 million to establish 20 specialist centres for young people with personality disorders or early psychosis.
$225 million to create or upgrade 31 Medicare Mental Health Centres.
$200 million to support 58 new or expanded headspace services.
$90 million for 1,200 training placements to grow the mental health workforce, including 200 GPs and medical professionals who will be trained in a new Certificate of Postgraduate Training in Clinical Psychiatry.
While the scale of the investment has drawn attention, the Royal Australian College of General Practitioners (RACGP) expressed concern that it may fragment care and create confusion for patients.
“Most people turn to their GP for mental health support,” said RACGP President Dr. Michael Wright. “This funding risks pulling patients away from the care they trust and potentially disrupting continuity.”
The RACGP has called for a 25% increase to Medicare rebates for mental health consultations, arguing that better funding for GPs would allow more Australians to access support without financial strain.
“We’re disappointed this policy doesn’t reflect that reality,” Dr. Wright added.
Federal Health and Aged Care Minister Mark Butler defended the plan, saying it represents a bold step in providing complex mental health care to young people.
“We’re building a workforce that’s ready to meet growing needs,” he said.
Mental health has become a key issue in the election campaign. Just last month, Opposition Leader Peter Dutton pledged $400 million for youth mental health, alongside a promise to double subsidised psychology sessions to 20 per year.
Demand for mental health services continues to climb. The RACGP’s Health of the Nation report found that 71% of GPs now cite mental health as one of the most common reasons for patient visits — up from 61% in 2017.
Mental health also tops the list of emerging concerns for doctors, far exceeding other health issues.
Figures from the Australian Institute of Health and Welfare show a dramatic rise in GP mental health consultations — from 1.3 million in 2012 to 2.3 million in 2021, an 80% increase.
Despite rising demand, affordability remains a barrier. Data from the Australian Bureau of Statistics reveals that one in five Australians delay seeking mental health care due to costs, especially for psychiatry and psychology services.
This issue is particularly acute among younger Australians. About 23% of people aged 15–24 reported putting off mental health care due to costs, compared to 8.6% of those over 65.
Minister Butler emphasized that the new investment builds on earlier initiatives, such as the National Early Intervention Service starting in January and expanded access to bulk-billed telehealth psychiatry.
He also defended the role of headspace, calling it “a core part of the youth mental health system.”
“When I was young, these services didn’t exist,” Butler said. “If you had a mental health issue, you were expected to go see your parents’ GP. Unsurprisingly, not many young people did.”
As the election nears, both major parties are doubling down on mental health, with Labor focusing on new infrastructure and workforce development, while the RACGP continues to push for increased rebates and better integration with general practice.
The college is also advocating for changes to the Better Access scheme, proposing that GP-led psychological strategies not count toward a patient’s capped number of subsidised psychology sessions.
Related Topics:
