Bridging the gap: Meeting the needs of Australians with psychosocial disability

Australia is failing more than 130,000 people with significant psychosocial disability – despite spending billions every year on the NDIS.

Last year the NDIS provided nearly $6 billion to support about 66,000 people with psychosocial disability, but another 130,000 adults with the greatest needs got nothing – from the NDIS or the mental health system.

This gap is fuelling a growing problem. People without adequate support are more likely to be homeless, admitted to hospital, or have their needs escalate – adding pressure to systems already under strain.

Sam Bennett, Mia Jessurun, Reilly Polaschek
The Grattan Institute
Sunday 7th December, 2025

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