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Queensland’s mental health support services will have their funding increased by nearly $400 million in Tuesday’s state budget, after an audit of the state’s mental health levy found funds were being mismanaged with no oversight.
Treasurer David Janetzki revealed the boost of $394.4 million over the next four years for new and existing mental health services, as he prepared to deliver the Crisafulli government’s second budget on Tuesday afternoon.
He said the funds would be drawn from the state’s Mental Health Levy, a dedicated funding stream for mental health, alcohol and other drugs services that was introduced in 2023 and is collected through payroll taxes.
The levy raised $1.2 billion in its first 18 months, and was expected to raise $553 million more than originally estimated in its first five years.
However, a recent report by the Queensland Audit Office found shortfalls in how the levy had been managed and evidence of money being spent on programs outside its scope.
Last week, the Australian Medical Association Queensland told this masthead the state needed an extra $600 million in funding for mental health services, as investment in the sector had not kept up with demand.
The Crisafulli government would guarantee every dollar raised by the levy would be directed into new and existing mental health services and infrastructure, Janetzki said.
“Ensuring mental health funding is invested where it is needed is fundamental, and we’re directing every dollar of the mental health levy into new and existing mental health services,” he told this masthead.
“The auditor-general raised concerns with the former Labor government’s management of the levy and we’re committed to every cent providing new and improved services for those in need of mental health support.”
The money would fund 53 new specialist clinicians to improve mental health assessment and treatment in emergency departments, and 30 new perinatal hospital beds.
Last year’s state budget included $24.3 billion for hospital and health service operations and more than $18 billion over five years for Queensland Health infrastructure, with “additional investments in mental health” flagged, but not detailed.
A spokesperson for the treasurer said the figure of nearly $400 million was based on unallocated funds accumulated by the levy and future revenue projections.
Last month, the auditor-general’s report found 92 per cent of the levy’s revenue had been allocated to the Department of Health, with funds passed on to hospital and health services, not-for-profits, and other government entities.
Funds were used for the Queensland Women and Girls’ Health Strategy 2032; to fulfil election commitments; and to fund other entities, including the Queensland Reconstruction Authority, and the Department of Justice for a domestic and family violence-related initiative.
While other departments can apply for levy funding, the QAO found the initiative was not being effectively managed as a whole, largely because the former government did not establish effective governance when it was introduced in 2023.
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