New York could learn from NSW on mental health and homelessness

The Productivity Commission’s Mental Health Inquiry Report, released in 2020, estimated 154,000 people across Australia who need support are missing out on psychosocial or community-based mental health services. And a recent report by the Mental Health Coordinating Council showed there is a large unmet need for mental health services – only 43 per cent of the 22,400 people who access specialist homelessness services and require mental health services receive support, meaning 53 per cent are missing out. This gap in psychosocial support is felt in real time by people in distress who cannot get the support they require, by families and carers who battle the service system on behalf of loved ones and by service providers stretched and unable to cover growing demand. Of course, housing is a core need for this group of people. But services such as CLS and HASI can provide the wraparound support that allows people to stay well in the community.

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As a former health minister, I understand all too well the pressures on the health budget – an ageing population, the increasing burden of chronic disease, the cost of sophisticated medical technology, and of course, the ongoing impact of COVID-19. But other states are exploring innovative solutions, with both Victoria and Queensland introducing new payroll levies to fund the desperate need for mental health services in their states. NSW should consider doing the same.

An additional investment of only $356 million over four years would support a further 10,000 people with severe mental health conditions to live well in the community. What’s more, according to KPMG research, the savings per person would be almost double the cost of the programs over the four years.

While it’s not yet as bad as New York, we are seeing more and more people on our streets living with mental distress. Surely, it is time to increase investments in programs we know work before we find the problem has grown beyond a solution.