Orygen welcomes Labor’s $700m election pledge for youth mental health

Orygen welcomes Labor’s $700m election pledge for youth mental health

8 April 2025

Labor’s $1 billion mental health package marks a breakthrough in delivering the reform and investment needed to address Australia’s youth mental health crisis. 

It is centred around the expansion of free mental health care, to help young people overcome cost barriers and improve equitable access to vital mental health care in the face of cost-of-living pressures.  

If re-elected, an Albanese government has promised: 

  • $500 million for 20 youth specialist care centres 

  • more than $200 million to bolster and expand the headspace network  

  • $91m to grow the youth-focused skilled workforce essential to care for young people and deliver evidence-based care. 

The new specialist centres, which draw on Orygen’s specialist early intervention program, will provide expert mental health care for the ‘missing middle’ – the service gap between primary care and emergency departments for young Australians with more complex needs, such as eating disorders, personality disorders, complex mood disorders and early psychosis. 

The headspace funding would build 25 new centres and upgrade 33 existing centres to meet more complex needs. 

Labor's commitments, which follow a $400m election pledge from the Coalition for youth mental health last week, are in line with recommendations from a joint statement from youth mental health sector leaders last month.  

“This is a groundbreaking commitment to respond to the youth mental health crisis, and Australians will be relieved to know it remains a bipartisan issue in this federal election, with significant commitments from both major parties,” Professor Pat McGorry, Executive Director of Orygen, said. 

“We are grateful to Prime Minister Anthony Albanese and Minister for Health and Aged Care Mark Butler for working with the sector in their response to this national challenge, and we welcome this vital commitment to the future of youth mental health in this country. 

“Australia has led the world in creating the field of youth mental health and this is largely because both sides of politics have been committed to the task and placed young people and families above politics. The crisis in youth mental health means a whole new phase of reform and investment is urgently required.  

“Two in five young Australians experience mental ill-health every year – a 50 per cent increase in 15 years – and suicide is the biggest killer among young people aged 12-25. 

“Orygen looks forward to continuing work with sector partners to drive reform and ensure funding and system improvements flow across Australia to the young people who need it most.”

To drive and guide the implementation of this reform, Labor has committed to establishing a National Institute for Youth Mental Health. This welcome step would see the institute take a leading role in driving a ‘Learning Health System’ that integrates translational research, biostatistics and mental health economics. 

Orygen, Australia's Centre of Excellence in Youth Mental Health, is committed to continue working collaboratively with academic and sector partners to ensure research, clinical practice and lived experience are coordinated to ensure the best outcomes for young people.

The total mental health package also includes $225m for 31 new and upgraded Medicare Mental Health Centres.