Labor’s $1 Billion Election Pitch for Free Mental Health Care

Mental health takes centre stage as Labor, Coalition, and the Greens unveil their plans for the system.

Mental health support workers at Westfield Bondi Junction in Sydney, Australia on April 18, 2024. AAP Image/Bianca De Marchi

A re-elected Albanese Labor government is spend $1 billion to expand Medicare-backed mental health services.

“We'll deliver this across Australia because good mental health care can change your life—and everyone should have access,” Prime Minister Anthony Albanese said in a campaign video.

The plan will add 31 new and upgraded Medicare Mental Health Centres, on top of the 61 currently in progress. Backed by $225 million, these centres will provide walk-in support without fees or referrals.

Labor will also spend more than $200 million to grow the headspace network, with 58 sites set for expansion or development to support young Australians.

A new $500 million investment will establish 20 Youth Specialist Care Centres. These will cater to young people with complex needs like eating disorders, personality disorders, or early psychosis—those who fall into the “missing middle” between GP care and hospitalisation.

To meet rising demand, Labor is committing $90 million toward training more than 1,200 mental health professionals and peer workers.

“No big bills, no jumping through hoops, just real help when you need it,” Albanese said.

Coalition Pushes Youth Focus, More Sessions

The Coalition is offering its own mental health package, with a $400 million pledge focused on young Australians and restoring previously cut therapy sessions.

Opposition Leader Peter Dutton says a Coalition government would double the number of subsidised sessions under Medicare, from 10 back to 20, after Labor’s decision to halve them.

“Only a Dutton Coalition government will make mental health a national priority and ensure all Australians, especially young Australians, have access to the affordable mental health support they need and deserve,” he said.

Greens Pledge Universal Mental Health Care

The Greens were first out of the gate with their ambitious mental health election pledge, proposing a Medicare-style model that guarantees universal access to care without fees or limits.

Their plan includes expanding the provider list, removing caps on therapy sessions, increasing rebates, and hiring 1,000 peer workers.

They also want to build free community clinics offering integrated GP, dental, and mental health services under one roof.

The big plan will be funded by increasing the tax rate on corporations, the party said.

Mental Health System Under Strain

The promises come as the system struggles to keep up with demand as more Australians claim to be suffering mental health conditions.

A recent Australian Psychological Society survey found two-thirds of patients wait more than 12 weeks to get help.

One in three psychologists are no longer accepting new clients—up from one in five in 2021—due to overwhelming demand. The result is a growing “missing middle” of Australians whose needs are too complex for GPs but not acute enough for hospitals.

The Victorian Royal Commission called the national system “crisis-driven,” overly reliant on medication, and lacking ongoing support options.

Experts also warn of worsening workforce shortages. A quarter of registered psychologists are aged over 55, and the federal government is meeting just 35 percent of its workforce targets for psychology training.