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When the Royal Commission into Victoria’s Mental Health System (RCVMHS) handed down its final report in 2021, it confirmed what those working within the system and the people trying to access its services already knew. The system’s capacity to deliver quality mental health services had not kept pace with community need.

The Victorian Government has committed to vital system reform, and subsequent State Budgets have included additional funding to implement the Commission’s recommendations. It is a huge undertaking, especially as ongoing cost-of-living pressures, housing instability and rising homelessness are contributing to greater psychological distress for many.

Meeting the diverse needs of Victorians experiencing mental illness remains a challenge, but investment in community-based care and a diverse range of local mental health services is a key focus.

A Nationwide Issue

Victoria’s mental health system, like those in other states, is under increasing pressure. Across Australia, hospital emergency departments are reporting a worrying rise in patients presenting with mental health-related conditions triaged as “urgent” and “emergency” and requiring hospital admission. Further compounding the problem is the record low number of specialised mental health public hospital beds, with a national average of just 27 beds per 100,000 Australians. 

Victoria has an average of 23 specialised beds per 100,000 people, which the AMA’s 2024 report identified as requiring urgent investment to address. Peak bodies, including the Royal Australian and New Zealand College of Psychiatrists, have welcomed the Victorian Government’s investment in additional inpatient mental health beds, including emergency department hub beds for people with acute mental illness. 

Access to mental health care is also impacted by where a person lives. The number of GPs, psychiatrists and psychologists Melbourne residents have access to is significantly higher than for Victorians living in regional and rural areas. This is a trend more broadly across the country, with the majority of health care professionals located in Australia’s major cities. 

Community-based Solutions

Considered the Commission’s ‘flagship reform,’ community-based mental health and wellbeing services are at the heart of Victoria’s future mental health care system.

In its 2025/26 State Budget, the Victorian government included $12 million for Hospital in the Home beds, which enables patients to receive acute mental health support and treatment at home. Community-based services for people experiencing severe mental illness are cost-effective for governments, are often a preferred model of care for patients and their families, and can support improved recovery outcomes. 

The benefits of access to comprehensive community-based mental health treatments have been demonstrated in services across Victoria. For example, psychologists Fitzroy and surrounding areas are part of a broader network of community mental health providers. Multidisciplinary mental health clinics provide individuals with access to a team of clinicians and allied mental health professionals all under one roof. This collaborative approach moves beyond short-term crisis support and offers clients a tailored and dynamic treatment plan that responds to their ongoing needs. In addition, hospital substitution programs offer treatment alternatives for patients with complex mental health conditions.

This article provides general information only and is not a substitute for professional medical advice, diagnosis, or treatment. Always seek the advice of a qualified health professional regarding your mental health. 

If you need urgent support, call 000 or contact Lifeline on 13 11 14.