This audit would examine the effectiveness of the Department of Health and Aged Care’s administration of mental health funding.

In March 2022, the Commonwealth and state and territory governments made the National Mental Health and Suicide Prevention Agreement (the Agreement), which identified gaps in the current system of mental health care including a need for better integration between primary, secondary and tertiary care services in a geographical region and a need for mechanisms to bridge the gaps between these settings. Under the Agreement, the Australian Government acknowledged its joint responsibility for supporting better integrated mental health service planning and care coordination at a regional level, accompanied by accountability mechanisms and reporting.

The 2021–22 Federal Budget allocated $2.0 billion in funding over four years for mental health programs and initiatives, including $117 million to go towards establishing a national mental health system database. In the 2022–23, 2023–24 and 2024–25 Federal Budgets a further $2 billion was allocated to mental health measures, including $589 million over eight years from 2024–25 to establish a digital mental health service. The previously independent National Mental Health Commission and the National Suicide Prevention Office were moved into the department as part of the 2024–25 Federal Budget.