Health Minister Mark Butler faces growing calls to release detailed plans for the next phase of reforms to the National Disability Insurance Scheme (NDIS), with mental health advocates urging the government to prioritise support for people with psychosocial disabilities. Experts warn that, despite the scheme’s $60 billion budget, those living with mental illness remain underserved and face significant barriers to accessing adequate care.
The push for reform intensified following the recent launch of Thriving Kids, a Labor initiative aimed at reducing reliance on the NDIS by providing alternate supports for autistic children. This milestone has prompted advocacy groups and experts to demand that attention shift toward the next key area of need—foundational supports for people with psychosocial disability.
In 2023, national cabinet agreed to jointly fund foundational supports, a category of services outside the NDIS designed to assist individuals with mild to moderate disabilities. At the time, Butler noted that discussions focused primarily on children with developmental delays but also included adults with lifelong mental health conditions. This led to a formal $10 billion agreement in February, of which $4 billion has been allocated to initiatives like Thriving Kids.
However, critics say progress on psychosocial disability support appears to have stalled. Allan Fells, former chair of the National Mental Health Commission, expressed concern that foundational supports for people with psychosocial disability seemed deprioritised. “We’re not aware of any serious action to deal with it at this stage,” Fells said, referencing sluggish negotiations between commonwealth and state governments and a comparatively modest funding allocation for these services.
Current NDIS data indicates about 66,000 Australians with psychosocial disabilities are enrolled, but an additional estimated 500,000 people fall into an “unmet need” category, caught between the NDIS’s scope and mainstream health services. Advocates warn that without adequate foundational supports, this gap will widen.
Mental health organisations also highlight the consequences of recent cuts to social and community participation funding, which helps people with disabilities engage in everyday activities such as attending cafes, participating in arts classes, or other recreational pursuits. Mind Australia chief executive Gill Callister warned that these funding reductions would disproportionately affect people with psychosocial disabilities, many of whom already struggle with housing instability, daily functioning, and social isolation.
“This funding cut will mean they’re likely to become quite isolated,” Callister said. “And one of the things we know about social isolation is it impedes recovery and increases the likelihood of rehospitalisation. This will add pressure to emergency departments and hospital beds.”
Callister also expressed frustration at the absence of clear government communication regarding progress on psychosocial disability reforms. “For whatever reason, it appears nothing’s moving, and I am really worried,” she said.
Carolyn Nikoloski, CEO of Mental Health Australia, echoed the call for clarity, describing the need to address psychosocial support as “increasingly urgent” and urging the government to provide a definitive policy roadmap.
A government spokeswoman said Labor continues to collaborate with state and territory governments as well as the mental health and suicide prevention sectors to improve psychosocial community supports but did not specify a timeline for new measures.