Partially delivered and in progress.
What the Royal Commission said
The Royal Commission called for a greater variety and diversity of services to be funded, including by supporting new providers and provider partnerships.
Providers and partnerships will operate under new service standards and funding models which encourage providers to achieve greater value for Victorians, by responding to the individual needs of consumers.
Specifically, the Royal Commission recommended that the Victorian Government:
- build on Recommendation 8 of the Commission's Interim Report, regarding a new approach to mental health investment
- empower Regional Health and Wellbeing Boards to use the new service standards developed by the Royal Commission to select providers and partnerships for the delivery of mental health and wellbeing services
- support the development of new and existing providers to meet the long-term ambition of the new service standards.
The Royal Commission also recommended the development of new ways of funding providers that encourage the provision of mental health and wellbeing services that consumers, families, carers and supporters value and result in an equitable allocation of resources.
What we’ve achieved
Activity-Based Funding
- Admitted mental health services have transitioned to the National Activity‑Based Funding (ABF) model, representing a major reform in the way acute bed‑based mental health services are funded and aligning funding with activity and demand.
- Most non‑admitted mental health services transitioned to ABF from 1 July 2025.
What we’re doing
The Department of Health continues to refine and strengthen funding models to ensure they appropriately reflect service needs and workforce requirements.
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