MYEFO 2025/26: Why Psychosocial Supports Cannot Wait

The Government’s 2025–26 Mid-Year Economic and Fiscal Outlook (MYEFO) includes welcome new investment in mental health services. However, it does not address the urgent need for psychosocial supports for people with moderate to high mental health needs who are not eligible for the NDIS.

Nearly 500,000 Australians rely on community-based psychosocial supports to live independently, stay connected, and participate in everyday life. Without immediate investment, many people will continue to go without the support they need.

Recent findings from the Productivity Commission reinforce the urgency of this gap, highlighting weaknesses in the current national mental health framework, including unclear responsibilities and the lack of coordinated reform.

MIFA is calling for immediate investment in existing psychosocial support programs, alongside longer-term, co-designed reform. Addressing urgent need now, while building a fairer and more effective system for the future, is essential.