2006/2007 Budget spending focus on mental health -
$224 million allocated to Respite Care

May 18 / 2006 by Kevin Marron

Prime Minister John Howard’s promise for increased spending of $1.9 billion for mental health over the next five years was confirmed in last week’s budget. This includes extra funding for 650 new respite care places.

This follows the release of three recent reports by The Mental Health Council, The Productivity Commission and a Senate Committee calling for greater action on Australia ’s mental health crisis, with approximately 20% of Australians estimated to be suffering from some form of mental illness (depression and anxiety being the most prevalent forms).

Key aspects of the extra mental health spending include:

• A five year plan worth $224.7 million for 650 new respite care places, supporting families of those with a mental illness
• $538 million allowing for greater access to GPs, psychiatrists and clinical psychologists under Medicare. The government estimates that 400,000 Medicare funded services will be provided by the end of the 5 year period.
• $284.8 million over five years for 900 personal "helpers and mentors" who will assist those with a mental illness with issues of accommodation, income support and treatment.
• $117.6 million over five years to boost the number of mental health nurses in GP clinics. It is expected by the Government that over 36,000 patients will be seen by mental health nurses across Australia a year.
• $103 million will allow for additional university places for mental health nurses and postgraduate clinical psychologists
• $28 million on a mental health awareness program
• Research into suicide prevention worth $62.4 million over five years

Of some concern is the lack of support provided to those suffering from severe disabling mental illness to return to the work force. Fear of discrimination and the loss of benefits is stopping many with a disability from seeking paid employment. The recent Welfare to Work changes exacerbates the problem for those with a disability as they wait up to two years to receive job search assistance. Low income workers also face a higher effective marginal tax rate – combing the loss of benefits with extra wages. According to Tom Keily and Ben Spies-Butcher from their article on www.newmatilida.com.au, this budget did little to address these issues, “It raised the low income earner tax offset, a welcome relief. But this benefit is withdrawn as your income increases. So it merely defers, rather than solves, the problem of high effective marginal tax rates”.

Carer Assistance

Recipients of Carer Payment will receive a bonus of $1,000 and recipients of Carer Allowance a bonus of $600. In addition, Diabetes Mellitus Type I will be added to the Carer Allowance Lists of Recognised Disabilities.

NSW Mental Health spending

The Mental Health Council has released information on a NSW Government plan for a significant expansion of its supported accommodation program for people with mental illness.

An extra $52 million will be invested over five years to increase the number of places from 700 to 934 in public housing and private accommodation, according to the Premier, Morris Iemma.

Mr Iemma did not allude to whether the NSW Government would meet the Prime Minister’s call for states to match the federal budget’s Mental Health spend. If NSW were to do so, this would involve a commitment further $600 Million in the next NSW state budget.