NSW extends psychiatrist retention allowance: progress worth protecting

The unprecedented psychiatry workforce crisis in NSW was a turning point for Australian mental healthcare. More than 200 public psychiatrists submitted their resignations, bringing longstanding concerns about workforce shortages, under-resourcing and patient care into sharp national focus.

It was also part of the genesis of the Australian Society of Psychiatrists (ASoP). Many of the psychiatrists who led calls for change during the crisis went on to establish ASoP, united by a determination to strengthen mental healthcare and ensure psychiatrists have an independent voice in advocating for improved care.

One year on, there is welcome progress.

On 29 September 2026, the NSW Industrial Relations Commission (IRC) ruled to extend the 20% combined recruitment and retention allowance for public staff specialist psychiatrists for another year.

First introduced in October 2025 in response to the workforce crisis, the allowance has helped stabilise the public psychiatry workforce, with encouraging signs of improved recruitment and retention.

The latest decision followed an application by the Australian Salaried Medical Officers Federation (ASMOF) and discussions with NSW Health, with both parties agreeing to maintain the allowance while broader proceedings on doctors' pay and working conditions continue.

ASoP welcomes this decision and the NSW Government's commitment to rebuilding its public psychiatry workforce. It is an important step towards restoring stability to services that patients, families and communities depend on.

But the workforce crisis also exposed a much bigger problem. Mental health under-resourcing is not unique to NSW. It is a national challenge.

Recruiting and retaining psychiatrists is essential, but it is only part of the solution. Clinicians also need well-resourced multidisciplinary teams, strong community services and the capacity to provide timely, continuous care — particularly for people living with severe and complex mental illness.

The events in NSW demonstrated what can happen when psychiatrists come together to advocate for better care. That spirit of collective action continues to drive ASoP's work nationally.

The extension of the allowance is a win worth recognising. The bigger task is building a mental health system where people can access the care they need, and clinicians have the resources to deliver it.