Unmet Needs Report

Adjourned debate on motion of Hon. C. Bonaros:

That this council—

1. Recognises the final report commissioned by the Office of the Chief Psychiatrist on 'Unmet mental health service need in South Australia that could be met by the NGO sector' (Unmet Needs report), dated February 2023.

2. Acknowledges the findings and recommendations of the Unmet Needs report, including:

    (a) 19,000 South Australians with severe mental illness require psychosocial support services each year but are not having their needs met;

    (b) an estimated $125 million per annum is required to address the shortfall; and

    (c) addressing the unmet needs in the South Australian mental health system would significantly reduce the demand for hospital-based emergency services related to mental distress and lead to reduced ramping and wait times.

3. Recognises the 19,000 South Australians identified in the Unmet Needs report represent a substantial increase compared to the Productivity Commission’s estimated 11,000 South Australians in 2020, highlighting the results of years of mental health policy failure from successive governments.

4. Notes the 2023-24 state budget provided no additional investment in psychosocial support, with the state government indicating it was awaiting the findings of the Unmet Needs report before making any decisions.

5. Notes the 2024-25 state budget similarly did not provide the necessary increase in funding towards psychosocial support.

6. Notes there has been no formal state government response to the findings and recommendations of the Unmet Needs report.

7. Calls on the Malinauskas Labor government to provide a formal response to the findings and recommendations of the Unmet Needs report by no later than 1 September 2024.

The Hon. J.S. LEE (21:49): 

I rise today in strong support of this motion, which acknowledges the findings of the 2023 Unmet Needs report commissioned by the Office of the Chief Psychiatrist. The report confirmed what many of us already know: our mental health system is under pressure, and too many South Australians are slipping through the cracks. This report conservatively estimated that 26,000 people with severe mental illness required psychosocial support in 2021-22, yet only 3,200 were supported through the NDIS and 4,489 through other programs, leaving nearly 19,000 people without services. That was 75 per cent of those in need back in 2021-22. How many more have slipped through the cracks in the three years that have passed since then?

As I highlighted in my matter of interest speech relating to the Mental Health Coalition in August 2023, psychosocial supports are not just about clinical care, they are about helping people live. They help individuals manage daily tasks, connect with their communities and avoid crisis care. They are essential to recovery and wellbeing. However, the rollout of the NDIS has unintentionally created a dangerous gap. Many programs lost funding under the assumption that the NDIS would cover all needs.

It is clear from the report that a significant proportion of people with severe and persistent mental illness are not eligible for the NDIS, yet they still require ongoing psychosocial support. The current system does not adequately meet their needs. Without targeted investment, these individuals will continue to fall through the cracks. This is not just a policy oversight, it is a systemic failure, and it is one that continues today. Despite the clear evidence and urgent recommendations, the 2025-26 state budget has failed to deliver the necessary investment.

In 2023, the government stated that they were waiting for the findings of this report before making decisions. The report was released over two years ago. There has been no meaningful increase in funding for community-based mental health services, no dedicated strategy to empower NGOs and no plan to address the tens of thousands of South Australians left in limbo. The report called for $125 million per year to close the gap. I recognise that this funding obligation is not just for the state but is also a federal responsibility, but that was three years ago. What has the Malinauskas government done since then?

While I welcome the recognition that psychosocial support is a shared responsibility between state and federal governments, I am deeply disappointed that the Malinauskas government has once again failed to provide necessary funding in the recently released 2025-26 state budget. The amendments proposed by the Hon. Tung Ngo remove key references to the scale of unmet need, the $125 million funding shortfall and the lack of state action to date. These omissions risk downplaying the urgency of the crisis and the responsibility of this government to act.

South Australians living with severe mental illness cannot wait for another round of national negotiations. They need support now. As we consider who is most impacted by these gaps, we must not overlook the unique challenges faced by culturally and linguistically diverse communities. As highlighted by Embrace Multicultural Mental Health, barriers such as stigma, language and a lack of culturally appropriate care continue to prevent many from accessing the support they need.

Any investment in psychosocial services must include a commitment to culturally responsive care, ensuring that all South Australians, regardless of background, can access services that respect and reflect their lived experience. The government cannot continue to ignore this. They must act on the recommendations. These services that keep people well and out of crisis need urgent funding. Earlier today, when I was speaking to another motion, I spoke about the drought and also the impact of viruses on primary producers and farmers. The impacts of mental health also need to be addressed in regional South Australia.

We need services that meet vulnerable members of society where they are at, in their homes and in their communities. It is up to us here in this place to ensure that no-one is left behind simply because they do not fit neatly into the funding model. I commend the motion and I thank the Hon. Connie Bonaros for her leadership in bringing this motion to the Legislative Council.