For years, mental health funding in Australia has been heavily concentrated in hospital–based care. Yet many people could be better supported earlier – in the community, at home, and before reaching crisis point. The challenge is knowing where investment will make the biggest difference.
To support better decisions – and better outcomes for people in NSW – the Sax Institute helped develop the Mental Health Investment Decision Tool, known as MhIND-T.
Developed by the Sax Institute’s Decision Analytics team in partnership with the Mental Health Commission of NSW, MhIND-T helps governments understand the real-world impact of different mental health services and investment options. Rather than relying on intuition or short-term indicators alone, the tool brings together evidence, data and system dynamics (simulation) modelling to forecast how different interventions may perform – for people, communities and the health system.
The problem
Mental health needs are rising, but resources are finite. Governments must weigh where funding will have the greatest impact – particularly in early intervention, where benefits may take time to emerge and are not always visible in hospital data.
Many community-based mental health programs, such as peer support, youth services, step-up/step-down care and housing-based supports, operate outside traditional clinical settings. This makes them harder to compare with hospital-based services using standard economic measures, and can result in preventative and early-intervention services being undervalued.
The Sax Institute solution: modelling for better decisions
To help address this challenge, the Sax Institute worked with the Mental Health Commission of NSW to develop MhIND-T – an online, interactive tool that supports mental health investment planning.
Delivered as a state-wide tool in 2023, MhIND-T brings together evidence from program evaluations, data on service costs, and simulation modelling to explore how different investment options may perform over time.
“Mental health systems are complex, and investment decisions are rarely straightforward. MhIND-T supports more considered planning by showing how different services and funding choices may interact across the system,” says Jennifer Black, NSW Mental Health Commissioner.
How MhIND–T works
MhIND-T evaluates both the costs and benefits of public mental health programs across NSW, including outcomes that are often difficult to quantify, such as improved wellbeing, reduced hospitalisation and broader social or economic gains.
Through its interactive interface, users can model different mixes of services, compare health system costs alongside societal benefits, and explore impacts on service use and community outcomes – supporting evidence-informed investment planning.
Users can test up to 16 interventions, ranging from early interventions delivered in school and youth settings through to online mental health tools and more intensive supports such as housing and wrap-around care.
Interventions can be modelled individually or in combination, allowing users to explore which approaches may be most effective in improving outcomes or reducing costs across the mental health system.
What was delivered
The project resulted in:
- A fully operational decision–support tool to guide mental health investment in NSW
- Supporting materials and documentation for policymakers and planners
- Evidence–based insights to inform strategy, budgeting and system reform
Guided by the Mental Health Commission and commencing in 2021, development was supported by an expert advisory group to ensure the model reflected the Commission’s priorities and sector expertise. Through multiple iterations, the tool has expanded both the range of interventions that can be tested and the outcomes and metrics it reports against.
Impact and outcomes
MhIND–T has already helped shape discussions about how NSW can strengthen community mental health support – shifting attention towards prevention, early intervention and recovery–focused care. When applied at scale, the tool has potential to:
- Support stronger investment in prevention, early intervention and community-based care
- Enable funding decisions that deliver better long–term outcomes
- Quantify the broader social benefits of mental health programs
Following the rollout of the state-wide model, the Commission has commenced work to regionalise MhIND-T, enabling planners working at the Local Health District level to test programs that could be expanded or introduced within their own regions. Program implementation, population demographics and resource inputs can vary significantly across NSW – from South Western Sydney to the Mid North Coast. This regional version of the MhIND-T model is expected to be completed in early 2026.
Why it matters
In a system where demand is high and every dollar must count, MhIND-T provides clarity. It strengthens the case for prevention and early intervention, supports more transparent investment discussions, and helps policymakers better understand the trade-offs involved in mental health funding.
