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Leaked documents show Victoria's mental health watchdog was progressively weakened by government cuts to its powers, budget, and staff, raising concerns about oversight.
Leaked documents have revealed that Victoria's mental health watchdog, the Mental Health and Wellbeing Commission (MHWC), was systematically weakened by the state government through drastic reductions to its powers, budget, staff, and independence, leaving it barely able to perform its safeguarding and oversight roles. The records, hundreds of pages in length, detail how the watchdog—demanded by the royal commission —was progressively diluted over the past 18 months, to the extent that it can no longer effectively monitor the mental health sector or track the state government's promised reforms. As Victoria's new mental health commissioner, Jennifer Black, starts in her role, she inherits a watchdog that has been stripped of its ability to investigate systemic issues such as whether there are enough new mental health beds for young people, whether restraints are being illegally used, patients being discharged into homelessness, or whether poor pay is contributing to a mental health workforce crisis.
Background and Establishment of the Watchdog
The MHWC was established as a key recommendation of the royal commission into Victoria's mental health system, which envisioned it as an independent body to hold the government accountable and monitor the sector. However, the leaked documents show that the commission's roles and powers have been extensively undermined. The commission was also blocked from accessing vital data by the Department of Health and did not act on concerns of excessive emergency department wait times for the mentally ill, or that health service administrators may be siphoning off mental health funds to prop up other areas of their struggling hospitals. Former commissioners and senior executives drafted a scathing opinion piece in June 2025, as part of a plan to go public about their diminishing independence and fears the government was turning its back on the royal commission recommendations, but did not follow through.
Key Reductions in Powers and Resources
Health Minister Ingrid Stitt appointed a single commissioner in place of the previous four. Former NSW mental health commissioner Jennifer Black took up the role from September 29, but with only half the staff and budget that the watchdog had a year earlier, and with a greatly reduced mandate to hold the government to account. The commission's four commissioners were pared back to just one, and the organisation's budget and staff were slashed. The MHWC stated it had upheld its independence and was focused on its role as it navigated a period of significant organisational and governance change. The Department of Health said the MHWC remained independent and a critical part of Victoria's mental health oversight framework.
Timeline of the Watchdog's Weakening
When MHWC executives gathered for a commissioners' governance meeting on February 20, 2025, there was no hint of the carnage that would soon befall the watchdog. Official notes from that meeting detail discussions that would be typical for the organisation, including a planning day for its lived experience team, a meeting with the Victorian Aboriginal Legal Service, and Victoria Police raising concerns that it did not have funding to train recruits in how to cope with mental health callouts. There was also a short update to let everyone know the mental health commission had submitted its 2025-26 budget bid, and that it was seeking a copy of the government's final budget to see what it would receive. The commission was told the process was cabinet in confidence and was not given an indication of what was to come. The executives were so confident about the budget that the meeting moved on to a discussion about salary modelling in light of a mid-year recruitment drive.
But when the commissioners met on June 12, 2025, everything had changed, and recruitment was now the last thing being discussed. The MHWC executives heard that the commission had been advised by the Department of Health that it would receive drastically reduced funding in the next financial year and that plans were afoot to change the Mental Health and Wellbeing Act which would reduce and reshape the role of the commission. As part of this, the organisation's four commissioners would be pared back to just one. Although details were limited, the MHWC already believed their role as a watchdog was being limited just 18 months after they had been established. They aired views that, through its mottled changes, the government was shifting power back to the department, which represented a significant change from the intent of the royal commission. The government appears to have scrapped two elements of this central reform agenda – regional boards and the Mental Health and Wellbeing Commission operating as outlined in the royal commission, the June meeting heard.
Impact on Mental Health Oversight
The weakening of the MHWC has significant implications for mental health oversight in Victoria. Without the ability to investigate systemic issues, the commission cannot ensure that the government's promised reforms are implemented effectively. The leaked documents reveal that the watchdog's roles and powers have been so extensively undermined that it cannot monitor whether there are enough new mental health beds for young people, whether restraints are being illegally used, whether patients are being discharged into homelessness, or whether poor pay is contributing to a mental health workforce crisis. These are critical areas that require independent oversight to protect the rights and wellbeing of people with mental health issues. The reduction in staff and budget also means the commission has fewer resources to carry out its mandated roles, further compromising its effectiveness.
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