Mental health issues are common in the Australian population and have a significant impact on people's lives, society and the economy as a whole. The mental health system in Australia is complex, with the delivery of services and funding split between the Australian government, state and territory governments, private providers and community organisations. There have been a number of in-depth inquiries and reviews into the mental health system in recent years that have made more than 200 recommendations for reform.

This paper provides an overview of this important sector with a particular focus on explaining the key themes for reform that cut across all the recent reviews and inquires, and which are reflected in many national and New South Wales mental health policies and strategies. The paper also provides information about the introduction of a new Mental Health and Wellbeing Act in Victoria which may provide lessons for NSW regarding reforms that could further improve the mental health system in this state.