Final Report - NSW Psychosocial Research Project

​Summary

The NSW Ministry of Health commissioned a report by David McGrath Consulting on psychosocial support delivery and need for people experiencing mental health challenges in NSW as part of the NSW Psychosocial Research Project. The findings will help shape future arrangements for the provision of psychosocial supports in NSW.

Psychosocial supports are non-clinical and recovery-oriented services that are delivered in community-based settings. They are primarily delivered by community managed organisations (CMOs) and support people experiencing moderate to severe mental health conditions to live independently and participate in the community. Examples of psychosocial support programs funded by NSW Health include the Housing and Accommodation Support Initiative (HASI), Community Living Supports (CLS), HASI Plus and Mental Health Community Living Supports for Refugees (MH-CLSR).

The Ministry of Health established an advisory group to oversee the project. Membership included representatives from the Ministry of Health, a local health district, peak bodies, a CMO and the NSW Mental Health Commission. 

Key findings

The key findings of the report were:

• Approximately 125,000 consumers and 95,000 carers in NSW did not receive a required psychosocial support service in 2022-23.
• Expenditure on mental health community support services in NSW exceeded estimated need by $723 million (i.e. 80% above estimated need) in the same period (2022-23).
• National Disability Insurance Scheme (NDIS) expenditure accounted for almost 90% of total expenditure and supported approximately 50% of mental health consumers in NSW.
• The report recommends cross-agency and interjurisdictional planning for psychosocial supports to reduce the variation in resource allocation per person between health and NDIS funded programs.