Introduction by Croakey: Cost of living relief was the headline news in this year’s New South Wales Budget, which contains a number of welcome health initiatives but public health experts say it failed to do enough on key issues including mental health, drug and alcohol support, and workforce pressures.
The New South Wales Council of Social Service (NCOSS) welcomed and applauded a number of investments and initiatives, including for essential services and cost of living relief. However it was concerned it did not include significant investment in early intervention — “care before crisis” — including providing more affordable housing.
With the NSW state election less than a year out (13 March 2027), the focus of Treasurer Daniel Mookhey’s 2026-27 Budget was on cutting vehicle registration by $100 for every private car, freezing public transport fares and putting a cap on road tolls, and delivering nurses their largest pay rise in more than two decades.
It also includes an “historic” $10.3 billion increase in health funding over four years, delivered with the Australian Government, that will grow the workforce, lift hospital capacity and meet rising demand, including:
- 9,000 more health workers
- capacity for an extra 33,000 emergency department presentations and 2,900 more planned surgeries each year.
Mental health groups have welcomed modest investments but say the Budget represents a missed opportunity to deliver the scale of investment needed in community-based supports, while drug and alcohol groups were aghast at the failure to act on the recommendations of the NSW Drug Summit, which they now fear was “simply window dressing”.
Public sector doctors also said the Government needed to stop treating hospital pressure as a series of isolated Budget problems and address the structural workforce crisis that underpins it.
Media and other commentators highlighted a record investment in domestic violence support and community safety in the wake of the Bondi Beach terror attack, and a major focus on western Sydney which is also in the frame for One Nation. They also noted that major Budget announcements on housing were notably absent.
Below are links to Budget resources, plus responses from the following organisations: Mental Health Coordinating Council, Royal Australian and New Zealand College of Psychiatrists (RANZCP) NSW Branch, BEING – Mental Health Consumers, New South Wales Council of Social Services (NCOSS), Network of Alcohol and other Drugs Agencies (NADA), Uniting NSW.ACT, Royal Australian College of GPs, ASMOF NSW, and the Centre of Excellence in Intellectual Disability Health.
2026-27 NSW Budget resources
- Budget papers and overview
- NSW Budget 2026–27: Overview
- Health overview: ‘Supporting families, securing our future’
- First Nations initiatives
Media reports and analysis
- Pearls & Irritations: A tale of two budgets: NSW and Queensland
- Guardian: NSW budget winners and losers: commuters, gambling operators and shark control
- ABC: The winners and losers in the 2026 NSW budget
Falls short on mental health
Mental Health Coordinating Council
Mental Health Coordinating Council (MHCC), the peak body for community-managed mental health organisations in NSW, welcomes the investment in mental health and suicide prevention in the 2026-27 NSW Budget, but says further investment is needed to strengthen community-based mental health supports and respond to growing demand across the state, including providing certainty around the future of psychosocial Foundational Supports.
“Mental health reform cannot rely primarily on hospitals and crisis responses. Without stronger investment in community-managed mental health supports and services, too many people will continue to miss out on the support they need to stay well in their communities,” said MHCC CEO Dr Evelyne Tadros.
“While we welcome the modest mental health investments announced in this Budget, it represents a missed opportunity to deliver the scale of investment needed in community-based supports that continue to show improved outcomes for people living with mental health challenges. There is strong evidence that clearly demonstrates their cost-effectiveness, while also reducing pressure on hospitals and emergency departments as well as the broader health system.”
Key announcements relating to mental health and community wellbeing include:
- $112.3 million for mental health and suicide prevention initiatives, including $43.3 million for Lifeline, $64.8 million to extend programs delivered under the National Mental Health and Suicide Prevention Agreement, and funding to support mental health peak organisations and strengthen sector capacity, collaboration and advocacy.
- Additional investments to be delivered in partnership with the Australian Government through National Agreements, Federation Funding Agreements and other Commonwealth funding arrangements. Whilst psychosocial Foundational Supports are expected to be jointly funded by the Commonwealth and states; the Budget provides no certainty around NSW’s investment.
- $9.3 million for culturally safe mental health services delivered through Aboriginal Community Controlled Health Organisations and Local Health Districts.
- Community workers including those under the Social, Community, Home Care and Disability Services (SCHADS) Award to receive the 4.75 percent Fair Work Commission wage increase, which the NSW Government is passing on in full.
These investments are welcome, but they fall short of addressing the scale of need facing people living with mental health challenges and the community-based supports that help them stay well.
“MHCC supports NDIS reform, but psychosocial supports must not be transitioned without a clearly articulated, fully funded, and co-designed alternative system — agreed with states and territories — that safeguards continuity of care and prevents people falling through service gaps.
The 2026–27 NSW Budget is a missed opportunity to provide certainty around the prioritisation, investment, design and timely implementation of Psychosocial Foundational Supports,” said Tadros.
We must invest in the evidence-base that tells us community supports work. The evaluation of the Community Living Supports (CLS) program, which provides psychosocial support for people living with severe mental health challenges, has demonstrated net savings of approximately $86,000 per person over five years, while mental health hospital admissions dropped by 74% and average length of stay decreased by almost 75% following program entry.
Similarly, the Bondi Prevention and Recovery Centre, a Step-Up Step-Down program, delivers a community-based alternative to hospital care for people living with co-occurring acute mental health challenges and alcohol and drug concerns, with service delivery costs around one-third of inpatient care while reducing hospital emergency presentations by up to 44 percent.
MHCC continues to call for a greater share of mental health funding to be directed toward community-managed organisations, with a long-term goal over 5 years of allocating 30% of the NSW mental health budget to the community-managed sector.
“With growing demand, poor investment in sector capacity building and workforce shortages as well as increasing pressure across both the mental health and disability systems, stronger investment in community-based support is essential to building a more sustainable and responsive mental health system for NSW.”
“The challenge for NSW is not simply how we respond to mental health crises, but how we invest in the supports that help people stay well, connected and supported in their communities in the first place,” Dr Tadros says.
Ongoing neglect of community mental health services
Royal Australian and New Zealand College of Psychiatrists (RANZCP) NSW Branch
Psychiatrists say ongoing neglect of community mental health services and underinvestment in health-led crisis responses continues to place pressure on hospitals, increase risks in the community, and leave many people without timely support in NSW.
The Royal Australian and New Zealand College of Psychiatrists (RANZCP) NSW Branch said today’s Budget includes some welcome investments, including:
- continuation of funding for suicide prevention services with the Australian Government
- investments in short stay units and hospital infrastructure
- improved regional access through the Isolated Patients Travel and Accommodation Assistance Scheme
- nursing and paramedic workforce measures.
The RANZCP also welcomed recent commitments from NSW Health to strengthen the psychiatry training pipeline in NSW, including additional roles within Training Networks to support supervision and education.
“These roles are critical to building the specialist workforce needed to meet future demand,” Dr Korbel said.
However, the Budget does not address the need for health-led frontline responses and the scale of unmet mental health need in the community.
RANZCP NSW Branch Chair Dr Ian Korbel said the state continues to rely on a crisis-driven and hospital-centric mental health system that steps in far too late, often only once people have already reached a breaking point.
“Not too long ago, the Bondi Junction inquest laid bare the devastating consequences of fragmented service delivery, gaps in continuity of care, and the absence of coordinated follow-up and outreach for people who disengage from treatment,” Dr Korbel said.
“Those findings should have been a turning point. This Budget had the opportunity to respond, yet it falls short of delivering the investment needed in health-led crisis responses, community mental health care and community outreach to address these failures.
Dr Korbel said decades of underinvestment in community mental health services have left too many people without access to timely care, early intervention and prevention.
“As a result, people are presenting to emergency departments, ambulance services and police in acute distress, when earlier support could have prevented escalation,” he said.
“When people fall through the cracks in our mental health system, the consequences are devastating for them, their families and the wider community. We know it all too well.”
The RANZCP said the Budget’s approach to community safety appears to place greater emphasis on policing and justice system responses, including increased investment in frontline policing and public prosecutions, while the sector continues to wait for dedicated investment in health-led mental health crisis responses, particularly in light of the recent Four Corners investigation.
“Without properly funded health-led crisis teams and stronger community mental health services, we will continue to see people with serious mental illness pushed into emergency departments, police interactions and the justice system,” Dr Korbel said.
“We can expect emergency departments to remain overcrowded and continue to act as the inappropriate front door to mental health care for many people whose conditions could have been stabilised or improved with the right support available earlier in the community.”
Recent evidence, including the NSW Legislative Council inquiry into community mental health and NSW Health’s Community Mental Health Priority Issues Paper, has highlighted the consequences of underinvestment in community care.
Dr Korbel said NSW continues to lag behind other jurisdictions in community mental health workforce capacity.
“We are a state of more than eight million people with a substantial workforce gap compared to the rest of Australia and reduced access to care for people who need treatment in the community, closer to home and their support networks, in environments that feel more familiar and less intimidating.
“When people cannot access timely treatment in the community, their condition can deteriorate and become more complex to treat, making recovery feel out of reach and increasing the likelihood of hospitalisation.
“That is more disruptive for individuals and families, and more costly for the health system.”
The RANZCP said investment in community mental health is both a clinical and economic priority and is calling for a staged expansion of the workforce, including an initial increase in frontline clinicians.
“Strengthening community-based services means people can access care earlier and avoid escalating to crisis and unnecessary hospital presentations,” Dr Korbel said.
“What we need is additional community mental health clinicians to begin rebuilding capacity while longer-term workforce growth is planned. Investment in the Community sector will save the government money by decreasing hospitalisations and improving people’s health.”
“This Budget has missed the mark on mental health, but we continue to hope the NSW Government will act on the evidence before it,” Dr Korbel said.
“Without serious investment in community care and health-led crisis response, people experiencing mental ill health will continue to be supported too late, and at far greater human cost than necessary.”
A mental health crisis is not a crime
BEING — Mental Health Consumers
BEING — Mental Health Consumers thanks Minister Rose Jackson and the Minns Government for investing $4.3 million into mental health advocacy. This is the largest increase in mental health advocacy funding, from the NSW Government, in the last 25 years. Across the three mental health peak bodies, the $4.3 million over the next four years equates to around an extra $333,000 per organisation a year. For this, we are grateful.
“With the Government’s commitment to funding a strong voice for mental health consumers across NSW in this Budget, our independent frank and fearless advice starts with this Budget”, said Mx Giancarlo de Vera, CEO of BEING.
The Government’s announcement boasted an extra $112 million in “new” mental health funding, but the fact of the matter is $108 million of this funding is just reannouncements of previous commitments: $64.8 million was already committed to the National Mental Health and Suicide Prevention Agreement, currently being negotiated by Australian governments, and $43.3 million to Lifeline is just the fulfilment of an election commitment.
“In truth, there is very little new investment for mental health in this Budget and nearly no new funding for expanded mental health services, at a time when mental health challenges are on the rise and mental health services, across the state, are in crisis — underfunded and understaffed — all in a cost-of-living crisis” said Mx de Vera.
That’s why BEING, alongside the other mental health peak bodies, and more than 20+ leading mental health and justice organisations released a joint statement on Budget night, outlining the human cost of underfunding mental health services in NSW, and presenting a four-point plan for positive reform.
“Despite more than 200,000 people in NSW experiencing severe or complex mental health issues each year, and more than 58,000 of these people unable to access care they need, the fact that this Budget provides no more certainty on NSW’s investment in psychosocial supports for those unable to access the NDIS, is playing with peoples’ lives”.
The NSW Mental Health Minister has a gap analysis report that tells us where and how much is needed to address unmet need. That report, completed in late 2024, has not yet been made public. We call on the Minister for Mental Health to release the report, and work with us on how to fill the gaps so NSW citizens can be guaranteed fully funded supports”, urged Mx de Vera.
On Budget Night, BEING, alongside the families of victims, held a candlelight vigil outside NSW Parliament to shine a light on police violence against people experiencing mental health crisis, and the human cost of the Government’s inaction on mental health reform.
Partnering with more than 20 leading mental health, community and justice reform organisations across NSW, we released a joint statement, declaring ‘Having a mental health crisis is not a crime’.
It detailed our four-point plan to reform mental health and justice in NSW:
1. Fully fund critical mental health services
2. Prioritise investment in community-based programs
3. Make health-led responses the default for mental health emergencies
4. Legislate a NSW Human Rights Act
From now until the NSW election in March next year, we will be campaigning to make this vision a reality, and to demand the changes that our community needs and deserves.
Welcome funds for essential services but need to prioritise care before crisis”
New South Wales Council of Social Service
The New South Wales Council of Social Service (NCOSS) welcomes the additional investment in essential services and cost of living relief announced in the NSW Budget. At a time when many households are struggling with affordability of basic needs, these measures will provide some support for people doing it tough.
Today’s Budget provides a foundation that can be built on in future years. We welcome the Government’s recognition that strong communities require sustained investment in the services people rely on every day.
This Budget shows that the NSW Government has listened to concerns raised by the community sector and made targeted investments in areas of growing need. We warmly welcome the significant investment in domestic and family violence supports, providing a critical boost to support the stability of this essential sector. These investments will help services respond to rising demand and support more women and children access the help they need.
We strongly welcome the Government’s announcement that social service organisations will receive additional funding to cover the Fair Work Commission’s Award wage increase.
Today’s investment in our healthcare and education systems is a meaningful commitment to the public systems that communities depend on. When people can access timely, quality care, the whole community benefits. We applaud the long called-for increase in the Isolated Patients Travel and Accommodation Assistance Scheme (IPTAAS).
New school infrastructure is a chance to do things differently: to design spaces where education, health and social services work together from the start, not in silos. Children who enter school with unmet health and developmental needs face barriers that compound over time. NCOSS looks forward to working with the government to ensure that opportunity is realised, building on the announced $631.9m investment in Thriving Kids.
We note that this Budget has not included significant investment in early intervention. As NSW faces challenging economic headwinds, with cost-of-living pressures and worsening unemployment, NCOSS calls on the Government to prioritise care before crisis. We need to do what we can to protect those most vulnerable to economic shocks and a growing affordability crisis.
The Performance and Wellbeing Statement does not include a measurement of poverty, which is why NCOSS calls on the Government to include this in future years. Recent data released by NCOSS shows one in three households in poverty were pushed into poverty only in recent years – while 53 percent of households in poverty report they are in extreme housing stress.
Finally, the Budget has missed the opportunity to make much needed additional investment to address the growing housing and homelessness crisis which has disproportionately impacted vulnerable members of the community. This is at a time when the social housing waitlist has grown to more than 70,000 applicants including the highest number of people urgently in need of priority housing.
NCOSS CEO, Cara Varian, said cost of living relief is welcome at a time when many households are struggling to make ends meet.
“This Budget lays the groundwork for deeper investment in people and communities. It shows the NSW Government has listened to the essential community sector, and we look forward to working with them to prioritise care before crisis.
“When the community sector speaks with one voice, this Government listens. That partnership is exactly how good policy gets made- and we intend to hold the door open.
“We welcome measures that will ease some of the financial pressures on households such as toll relief, a cap on Opal fare increases, and the boost to IPTAAS funding, but the government could have gone further to invest in early intervention and prevention to stop more people in NSW falling through the cracks.
“There are missed opportunities in this Budget to address the root causes of inequality, including greater investment in preventative health strategies and social and affordable housing, at a time when the social housing waitlist is at an historic high,” Ms Varian said.
Fails to act on Drug Summit priorities
Network of Alcohol and other Drugs Agencies (NADA)
The Network of Alcohol and other Drugs Agencies (NADA) has criticised the NSW Government for failing to deliver critical funding to alcohol and other drug (AOD) services in the State Budget.
NADA CEO Dr Robert Stirling said that despite clear evidence and priorities set out by the 2024 NSW Drug Summit, this failure to act raises the question: Why did the NSW Government bother holding the Drug Summit?
“The NSW Government has missed a critical opportunity to act on the Drug Summit’s findings,” Dr Stirling said.
“Today’s Budget categorically fails to address the growing demand for AOD treatment and support in NSW, while more than 100,000 people in our state are seeking treatment but are unable to access the help they need.
“Without investment, the Drug Summit recommendations remain unfulfilled and a growing number of people are stuck on waiting lists.
“We can’t help but think that the Drug Summit was simply window dressing, rather than a genuine attempt to reform key policy gaps.”
NADA’s 2026–27 Pre-Budget Submission called for an additional $13 million per year over five years to strengthen the NSW non-government AOD sector.
The sector plays a critical role in delivering treatment, harm reduction, and ongoing care across more than 150 locations, including in regional and rural communities. However, services are under increasing pressure due to rising demand, client complexity and workforce challenges.
NADA said the Budget does not reflect the urgency or scale of action recommended by the Drug Summit, particularly the priority to significantly increase funding to address unmet need and client complexity.
“Our sector is delivering strong outcomes for people, but we cannot continue to meet demand without appropriate and sustained funding,” Dr Stirling said.
The Buttery CEO and Chair of NADA Leone Crayden said the Budget is a missed opportunity to respond to clear evidence and community expectations.
“Regional NSW continues to experience significant service shortages. Without sustained investment in treatment, workforce development and community-based supports, many people will continue to miss out on the help they need,” Ms Crayden said.
“”Investment in alcohol and other drugs treatment is not simply a health expenditure, it’s an investment in stronger families, safer communities and better long-term outcomes across health, housing, justice and social services.”
Data from the sector shows that 80 percent of people accessing treatment reduce or cease their AOD use, alongside significant improvements in health and wellbeing.
NADA also warned that the Government has failed to deliver a new, comprehensive AOD strategy within the timeframe flagged in response to the Drug Summit, leaving NSW without an overarching strategy to guide reform.
“It is deeply concerning that NSW still does not have a current, whole-of-government AOD strategy in place,” Dr Stirling said.
“NSW has not had a public strategy to guide investment, reform and coordination across the sector for more than 15 years.
“Without a strategy, there is no clear plan to implement the Drug Summit recommendations, no roadmap for reform, and no accountability for outcomes.”
NADA is calling on the NSW Government to work with the sector to implement the Drug Summit recommendations and ensure that future budgets include the necessary investment to expand access to care.
“The NSW Drug Summit created a clear mandate for reform,” Dr Stirling said.
“This Budget should have been the Government’s moment to act, instead, it has failed to deliver.
“We remain committed to working with Government to ensure people in NSW can access the care they need, when they need it.”
To read more about NADA’s policy positions and recommendations to Government, visit nada.org.au/nsw-drug-summit-2024
Background: 100,000 people, one budget: The NSW alcohol and drug treatment crisis cannot wait
Support don’t punish, as overdose rates hit record high
Uniting NSW.ACT
As Australia records its highest-ever number of overdose deaths, organisations across the country mark Support Don’t Punish Day 2026, a global campaign demanding drug policies grounded in health, compassion and human rights.
“This is the day when Uniting NSW.ACT joins with organisations from around the world to challenge stigma and injustice, and to push for laws, policies and practices that support health outcomes instead of punishment,” said Alex Hogan, Uniting NSW.ACT’s Senior Social Justice Lead.
“The Penington Institute’s latest Annual Overdose Report shows overdose deaths have reached their highest level on record, with seven Australians dying every day. Yet this year’s NSW Budget has no new funding for alcohol and other drug treatment services, no investment to strengthen the Early Drug Diversion Initiative (EDDI), and no funding for drug checking services,” said Ms Hogan.
Recent evidence continues to underline that reform works. The ACT’s two-year evaluation of drug decriminalisation found around 70 per cent of people found in possession of drugs were diverted away from the criminal justice system and into health and support services.
By comparison, a March 2026 BOCSAR review found NSW’s Early Drug Diversion Initiative (EDDI) is falling well short of its intended purpose, with only 22 per cent of eligible people offered diversion during its first year.
“The NSW Government must urgently legislate and fund the Drug Summit reforms,” said Ms Hogan.
“This includes strengthening EDDI so diversion becomes the default response by police – removing the strike system, lowering fines, and other eligibility barriers.”
“The ACT has shown that evidence-based drug law reform works. It diverts people into health care, reducing pressure on courts and law enforcement and ultimately saves lives.”
To mark Support Don’t Punish Day, Uniting’s Fair Treatment campaign will host a Webinar on 8 July, examining NSW’s Early Drug Diversion Initiative, lessons from the ACT model and how to build fairer, more effective health-based responses to drug use.
Welcome measures but GPs need more support
Royal Australian College of GPs
RACGP commends NSW Budget’s support for patients leaving hospital as GPs prepare for ADHD and Thriving Kids changes
The Royal Australian College of GPs (RACGP) has welcomed investments in the 2026-27 NSW Budget to support patients transitioning out of hospital into care by GPs in the community, funding for rural patients travelling to access non-GP specialist care, and Indigenous health.
The RACGP also welcomed Thriving Kids funding to support access to support for autism and developmental delay for families, as well as the NSW Government’s ongoing work to support better access to ADHD care by specialist GPs.
But with New South Wales hospitals’ costs surging by more than 60 percent since 2014 and the health system “struggling” to cope with an ageing population and chronic disease, the College reiterated supporting GPs will not just reduce hospital costs, but as outlined in its NSW Pre-Budget Submission 2026-27, will improve patients’ access to care.
Key NSW Government health investments in the 2026–27 Budget include:
- $631.9 million from NSW over five years to 2030–31 for the commencement of Thriving Kids targeted and general supports for children aged eight and under with developmental delay and/or autism (part of a $1.1 billion package co-funded with the Australian Government)
- $184.1 million to increase funding by 50% for six frontline specialist domestic and family violence programs over the next four years
- $154.2 million for Indigenous health and Closing the Gap, after the last NSW Budget’s record investment that included $362.9 million to Aboriginal Community-Controlled Health Organisations (ACCHOs) in 2024–25
- $71.7 million for the Isolated Patients Travel and Accommodation Assistance Scheme (IPTAAS) to support patients who must travel long distances for care
- $35.7 million to improve aged care patient flow, part of a Future of Healthcare package.
RACGP NSW&ACT Chair Dr Rebekah Hoffman reiterated how specialist GPs can improve access to care in NSW.
“Over the last decade, New South Wales’ hospital costs have grown by more than 60 percent – it’s not sustainable,” she said.
“GPs can help to cure a healthcare system struggling under the burdens of an ageing population, an epidemic of chronic disease, and a growing need for mental health care.
“We’re already demonstrating that with the support GPs are providing to patients with ADHD. GPs have been continuing scripts for patients’ medication and providing holistic ADHD care for months now, and the first specialist GPs being trained to diagnose ADHD are already making a difference.
“As they complete their training in the second half of the year, they’ll be a strong demonstration that GPs are a key solution to access issues for patients in their communities.
“There are some welcome measures in the Budget. We’ll be meeting with the Government to discuss the more granular details, but also how initiatives we outlined in out RACGP budget submission can improve patients’ access to care.
“We look forward to working with the NSW government and ministers on the NSW preventive health summit announced earlier this month to prevent further hospital spending.”
She welcomed the additional investment in Aboriginal and Torres Strait Islander health, linking it to investments in ADHD.
“The previous funding to support Aboriginal and Torres Strait Islander patients to access high-quality care through ACCHOs was welcome, and it’s excellent to see the Government continuing to work towards closing the gap,” she said.
“Services like Tharawal Aboriginal Medical Service, where several GPs are training to provide ADHD care, provide essential access to care in South Western Sydney and the RACGP welcomes the additional $154 million investment in this budget.”
Dr Hoffman said the Thriving Kids funding in the Budget will help GPs link patients and families with children with developmental delay and autism with low needs to essential supports.
“Families rely on their local GP as a knowledgeable, connected gateway into the supports their child needs,” she said.
“To succeed, GPs and families need Thriving Kids to link them to services that appropriately match their needs, whether those are general supports like peer support and play groups, or more targeted supports for children who need support from allied health and non-GP specialists, with appropriate coordination by their GP.
“I look forward to discussing how the services funded in the Budget will work with and alongside general practice care.”
Dr Hoffman welcomed the patient flow, patient travel, and domestic, sexual and family violence measures, but urged the Government to go further by using GPs to improve access to key medical specialty care and get more patients out of hospital sooner.
“If a patient can’t leave hospital and return to aged care or the community, that’s a hospital bed that another patient can’t use – a needless delay for families and a steep cost for the health budget,” she said
“That means a $35.7 million investment to improve patient flow could have an outsized positive effect, and while we’ll need to see details, investment in GP Liaison Officers should be part of it. These liaison roles both reduce inefficient and unnecessary hospital referrals and support safe and timely discharge, cutting long waits in our hospitals – they’re GPs who make the whole system work better.
“The 50 percent funding increase for six domestic, sexual, and family violence programs is also excellent news. GPs are often the first person a person speaks to about violence in the home, and GPs often spend time helping patients to find the support they need. No one should struggle to find help when they need it, for themselves or as a GP seeking support for a patient.
“The State Government funding for travel and accommodation is vital for our patients outside big cities who need to travel for care and will be very welcome for our rural and remote GPs and their communities.
“Funding patients to access the care they need from GPs with Special Interests in each Local Health District would also unlock access to care, whilst reducing demand on our hospitals.”
More needed to reduce doctor workforce pressures
Australian Salaried Medical Officers Federation (ASMOF) NSW
ASMOF NSW — The Doctors Union has welcomed the NSW Government’s $10.3 billion increase in health funding, investment in new hospitals and additional beds, and funding for 9,000 additional health workers, while cautioning that further action will be needed to address the workforce challenges at the centre of pressure across NSW public hospitals.
The Budget includes an $11.9 billion capital investment program to deliver 32 new and upgraded hospitals and 2,500 additional beds and treatment spaces, alongside regional investments including three new helicopter bases, additional funding for the Isolated Patients Travel and Accommodation Assistance Scheme, a new maternity unit at Grafton Hospital, and investment in regional specialist services.
While this investment is an important step, ASMOF NSW said it will only translate into improved patient care if NSW can attract and retain enough doctors to staff services effectively.
ASMOF NSW President Dr Nicholas Spooner said the Government needed to stop treating hospital pressure as a series of isolated Budget problems and address the structural workforce crisis that underpins it in its entirety.
“The real test of this Budget is not simply whether more money has been allocated to health, but whether it strengthens the medical workforce that underpins the public hospital system.
“NSW continues to have the lowest-paid doctors in the country and some of the most challenging working conditions. This makes it harder to retain experienced clinicians and recruit the workforce we need.
Dr Spooner said a comprehensive, long-term workforce strategy is essential.
“Addressing workforce pressures requires a coordinated approach that supports doctors throughout their careers and ensures NSW remains a competitive place to work.
“Without sustained progress on pay, conditions and staffing, it will remain challenging to build the stable workforce patients rely on.”
He acknowledged the ongoing commitment of healthcare workers across the system.
“Doctors, nurses and other health professionals have kept the public health system functioning under enormous pressure, but dedication is not a workforce plan.
“Patients need hospitals that are properly staffed, doctors who are properly supported and a workforce that is properly valued. This Budget does not go far enough to address the cause of the crisis.”
Dr Spooner said the Budget’s allocation of $26.5 million for the NSW Health Locum Agency reflected the continued reliance on short-term staffing arrangements to fill workforce shortages across the public health system.
“The continued investment in locum staffing highlights the ongoing challenges NSW faces in recruiting and retaining a permanent medical workforce.”
The NSW Auditor-General has reported that NSW Health spent more than $1.3 billion on Visiting Medical Officer (VMO) services in a single year, reflecting the growing reliance on a sessional medical workforce that functions similarly to a casual staffing pool.
“While these arrangements play a role, building a strong, permanent workforce is cheaper, more sustainable and supports continuity of care for patients.”
Dr Spooner said ensuring doctors are well rested and properly supported is critical to delivering safe patient care.
“The Special Commission of Inquiry into Healthcare Funding highlighted the direct link between workforce pressures, staff fatigue and patient safety, with clear evidence of the strain on doctors and the risks associated with unsafe working hours and chronic understaffing.
“When doctors are consistently stretched beyond safe limits, it increases the risk of errors and compromises the quality of care patients receive. A well-rested workforce is fundamental to a safe health system.
“Too often, the system relies on the goodwill of doctors taking on additional workload, rather than ensuring there are enough doctors to meet demand. That approach places both doctors and patients at risk.
“Ensuring doctors have manageable hours and appropriate staffing support is essential to delivering consistent, high-quality and safe patient care across NSW.”
Dr Spooner said the Budget also failed to recognise how much medical work has changed and how much more is being asked of doctors.
“Doctors are treating sicker and more complex patients, working with more advanced technology, undertaking more specialised procedures and carrying expanded governance responsibilities.
“Across all medical specialties, the skill and responsibility required of doctors have increased substantially, but their pay and conditions have not kept pace.”
Dr Spooner said clinicians had already contributed to improvements in productivity and models of care, but that ongoing reform would depend on a well-supported workforce.
“NSW has a high-performing public health system, and continued investment in its workforce will help ensure it remains sustainable into the future.
“Patients ultimately benefit from hospitals that are well-staffed, supported and resourced. This Budget is a step forward, but there is more to do to fully address workforce challenges.”
Missed opportunity for people with intellectual disability
Centre of Excellence in Intellectual Disability Health
The NSW Budget has missed an important opportunity to improve health outcomes for people with intellectual disability across the state, the Centre of Excellence in Intellectual Disability Health says.
Centre Director, Scientia Professor Julian Trollor, said the NSW Budget failed to include any significant new investment to help address the profound health inequities experienced by people with intellectual disability.
“Unfortunately, this Budget contains no new investment to help people with intellectual disability access the healthcare they need and deserve,” Professor Trollor said.
“People with intellectual disability die, on average, 27 years earlier than other Australians, largely due to preventable health conditions. That is a shocking statistic and one that should demand urgent action from government.”
Professor Trollor said people with intellectual disability and their supporters had called for the expansion of the highly successful Specialised Intellectual Disability Health Teams, which provide free multidisciplinary healthcare and support for people with intellectual disability and their families.
“These teams are making a real difference by helping people access specialist healthcare, coordinating complex care needs and supporting better health outcomes.
“The demand for these services continues to grow, yet this Budget fails to extend access to more people who could benefit from them.
“Expanding these teams would be a practical and cost-effective step towards addressing the unacceptable health inequities experienced by people with intellectual disability.”
Professor Trollor said the Centre would continue to advocate for greater investment in health services that improve quality of life and reduce preventable illness and premature death.
“People with intellectual disability deserve the same opportunity to live long, healthy lives as every other member of our community. We remain committed to working with government to ensure that future investment reflects the scale of the challenge and delivers the healthcare support people need.”
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