Mental health support is key to Ending Youth Homelessness.

It is often said that housing ends homelessness. But building houses alone won’t fix the problem if we don’t address the factors that lead to people losing secure housing in the first place.

Poor mental health is one of the leading causes of homelessness but thousands of Tasmanians with severe and moderate mental illness are falling through the cracks, unable to access the support they need.

The consequences are devastating, including homelessness, increased hospital admissions and a growing burden on an already stretched healthcare system.

Psychosocial supports - community-based services that help people with moderate and severe mental illness manage their daily lives - are a critical part of the mental health system. Yet, a recent Commonwealth-commissioned report revealed that Tasmania has the worst shortfall of psychosocial support services in the country. An estimated 9,500 people with moderate and severe mental health needs are either outside the NDIS or receive no federal or state-funded psychosocial services.

The evidence shows that investing in these services save lives and significantly reduce long-term costs to the budget.

One of the clearest demonstrations of the impact of psychosocial support is the Housing and Accommodation Support Initiative (HASI), a partnership between the Tasmanian Department of Health, Homes Tasmania, and Home Base.

This program has demonstrated outstanding results in helping social housing tenants in southern Tasmania maintain stable housing while managing mental health challenges.

In 2023-24, HASI supported 19 people, with 95 per cent maintaining their tenancies and none requiring admission to a mental health inpatient unit. Additionally, 91 per cent of participants reported improved quality of life, and 100 per cent gained better access to mental health and allied health services. These figures show that when people receive the right supports, they can manage their mental health, stay housed, and avoid hospital admissions.

Beyond these personal benefits, HASI has delivered financial savings. A 2020 analysis found that the program saved $1.4 million annually - $1.16 million in avoided homelessness costs and $222,440 in reduced hospital bed days.

National research confirms that supported housing initiatives can reduce hospitalisation rates by over 70 per cent and decrease hospital stays by more than 75 per cent. These are extraordinary figures that show how strategic investments in psychosocial services pay off in both human and economic terms.

Fully addressing the service gap would require an investment of roughly $200 million annually. While this figure may seem daunting, the Mental Health Council of Tasmania (MHCT) has proposed a phased approach to closing the psychosocial service gap over four years, which would allow community mental health organisations to build their workforce capacity while ensuring sustainable funding increases.

The federal and state governments have joint responsibility for investing more in the mental health of Tasmanians who are not getting critical supports. This should start with the Tasmanian 2025-26 budget cycle.

Federal Health Minister Mark Butler has acknowledged the severe disadvantages faced by Australians with complex mental illnesses, calling the current system “a really raw deal.”

The Tasmanian Government’s Rethink 2020 strategy has also identified the link between housing instability and severe mental illness. Without adequate psychosocial supports, too many Tasmanians are being discharged from hospitals with nowhere to go - only to cycle back through the system.

Without coordinated investment, the revolving door of hospitalisations and homelessness will continue.

The evidence is clear: psychosocial supports reduce costs, improve lives, and create a healthier, more equitable Tasmania.

HASI has proven that investing in community-based mental health services works. Now is the time for our governments to scale it up - not just with words, but with the funding and policies needed to build a mental health system that truly serves all Tasmanians.

Co written by Dianne Underwood, CEO of Home Base and Connie Digolis, CEO of the Mental Health Council of Tasmania.