Managing funding from the mental health levy

Tabled Report 14: 2025–26

Tabled date

2026-05-22

Report year

2025-26

Community welfare Health

Entities audited

• Department of Health
• Queensland Treasury

Recommendations

1. QAO's text Addressed to: Queensland Treasury

   consults with key entities to establish governance of the levy as a whole by:

   • identifying the scope for how mental health levy funding can be used. This includes providing guidance and clarity around what services and infrastructure can be funded, and whether and to what extent the levy can be used to replace existing funding sources
   • leading and coordinating how roles and responsibilities are assigned for planning and overseeing levy investment, outcomes, and expenditure across the continuum of care
   • establishing transparent reporting on levy expenditure
   • recommending that government introduces reporting on the levy’s allocation and performance

2. QAO's text Addressed to: implements an internal policy for how it administers the levy. The policy

   implements an internal policy for how it administers the levy. The policy should outline:

   • the minimum information needed in its advice about funding requests
   • when it can approve entity requests to defer allocated levy funding

3. QAO's text Addressed to: implements an internal policy for how it administers the levy. The policy

   provides guidelines to entities who receive levy funding, which at a minimum include:

   • the prescribed use of funding under legislation
   • accountabilities for ensuring funds are spent for their approved purpose and in line with legislation
   • requirements and obligations for deferring and managing changes to the approved use of funding
   • performance and expenditure reporting requirements, including the need for all government entities that receive funding to acquit their expenditure directly back to Queensland Treasury.

4. QAO's text Addressed to: the Department of Health

   improves how it governs all its allocations of levy funding by establishing:

   • clear accountabilities for decisions to fund new projects and reallocate existing funding, in line with levy funding guidelines
   • a risk-based criteria for financial and performance monitoring and reporting that provides effective oversight and control
   • improved management of risk and escalating requests for changes to approved expenditure
   • appropriate forums for stakeholder engagement

5. QAO's text Addressed to: the Department of Health

   informs planning for whole-of-levy investment by progressing and enhancing its:

   • formative and final evaluation of Better Care Together: A plan for Queensland’s state-funded mental health, alcohol and other drug services to 2027
   • joint regional planning for mental health, alcohol and other drugs services.

Authoritative report — Queensland Audit Office

Report PDF on QAO