Mental Health Commission

Strategic Commissioning

The Mental Health Commission (Commission) facilitates delivery of more than $1.77 billion per annum of mental health, alcohol and other drug (AOD) services in Western Australia.

The State Commissioning Strategy for Community Services (the Strategy) aims to change the way government delivers community services in Western Australia. The Strategy encourages collaborative ways of working between State Government agencies and the community services sector, to prioritise outcomes for consumers through a person-centred and outcomes-focused commissioning approach.

It is recognised that the transition from purchasing services to a more holistic, proactive and sustainable commissioning approach will take time to achieve. The Strategy details the actions to be taken by government agencies in implementing commissioning in Western Australia and includes the requirement for line agencies to develop Agency Commissioning Plans.

The Commission’s Agency Commissioning Plan (2023-2030) (the Plan) sets out the guiding principles, intentions and focus areas for commissioning over the short and medium term. The Plan is supported by a Commissioning Schedule that provides a timeline of planned commissioning for new and existing mental health and alcohol and other drug community services.

The Plan and Commissioning Schedule are updated biennially.

The Commission has a Commissioning Framework outlining its approach to commissioning and is informed by contemporary practice and the organisation’s strategic direction.

Health Service Provider funding 

The Commission is responsible for purchasing publicly funded mental health and alcohol and other drug services in Western Australia.

These services are delivered by both public Health Service Providers (HSPs) and non-government organisations.

HSPs deliver services through public hospitals, inpatient mental health units, community mental health clinics, day therapy and outreach programs across the state, including specialised mental health services.

While the Commission funds a wide range of mental health and alcohol and other drug services, the information below focuses on how services delivered by public HSPs are funded.

Inpatient Mental Health Service Funding

Inpatient mental health services provided by HSPs are funded through Activity Based Funding (ABF). ABF is guided by the Australian Mental Health Care Classification (AMHCC), which helps measure care complexity and resource use.

Find out more about ABF

Funding is allocated annually in line with the National Efficient Price set by the Independent Health and Aged Care Pricing Authority (IHACPA). Funding is calculated using Weighted Activity Units (WAUs), which are a standard measure of healthcare activity. This helps ensure funding reflects both the services provided and patient needs.

Non-admitted Mental Health Service Funding

Historically, non-admitted community mental health services have been funded through a block funding model. As part of the National Health Reform Agreement, eligible non‑admitted community mental health services will transition to ABF from July 2026. Services where mental health care is not the primary purpose, such as alcohol and other drug services, are outside the scope of the transition and will continue to be funded through a block funding model. 

Useful Resources

ABF in the healthcare sector is a way of funding hospitals whereby they get paid for the amount and mix of patients they treat. Because some patients are more complicated to treat than others, ABF also takes this into account. 

ABF relies on accurate and consistent patient activity data. HSPs can use the following resources to support consistent data reporting:

IHACPA provides education materials to support clinicians in understanding how to assess and assign the Mental Health Phase of Care.

For further information about ABF, contact the Commission.     

Accreditation Requirements for Non-Government Mental Health and Alcohol and Other Drug Services

The Mental Health Commission (Commission) requires all non-government providers of mental health and alcohol and other drug (AOD) services to obtain and maintain accreditation through a recognised quality standard.

Accreditation for Non-Government Mental Health Services 

Currently, Commission-funded non-government mental health service providers must be accredited against the National Standards for Mental Health Services 2010 (NSMHS) by a recognised Certification Body.

Transition to the CMO Standards

As of 1 July 2027, the Commission will transition from the NSMHS to the 
National Safety and Quality Mental Health Standards for Community Managed Organisations Standards (CMO Standards).

Non-government organisations (NGOs) contracted by the Commission to deliver mental health services will be required to transition to the CMO Standards.

Read the CMO Standards Guide for Service Providers

If an NGO’s accreditation is due on or before 30 June 2027, NGOs may choose to continue with the NSMHS or adopt the CMO Standards.

If accreditation is due on or after 1 July 2027, NGOs must be accredited against the CMO Standards.

Re-certification is required every three years, prior to the expiry of the current accreditation.

This information should be considered in conjunction with the non-government service provider’s specific contractual arrangements with the Commission. 

Resources and Support

The Australian Commission on Safety and Quality in Health Care (ACSQHC) has developed comprehensive resources for service providers, consumers, and carers to support the implementation of the CMO Standards. 

Find Resources

Frequently Asked Questions

Non-government AOD providers

Non-government AOD service providers are required to be accredited against one of the recognised standards identified in the National Quality Framework for Drug and Alcohol Treatment Services (2019) .  Accreditation is to be obtained through a recognised Certification Body and re-certification is expected every three years before expiration of the previous accreditation.

Consumer/client and family/carer input

The Commission encourages all mental health and AOD consumers/clients, their families/carers, and other key stakeholders, to provide feedback to the Certification Body (auditor) when they visit service sites for accreditation purposes.  Please contact your service provider to find out when the auditor is due to visit the services you use/work with.

If you have any queries about accreditation requirements for mental health or AOD services, please email quality@mhc.wa.gov.au.  

Mandatory Reporting of Notifiable Incidents

All non-government mental health and AOD services purchased by the Commission are required to report Notifiable Incidents to the Commission within a reasonable timeframe. Some mental health NGOs are also required to report Notifiable Incidents to the Office of the Chief Psychiatrist (OCP) and the Department of Health’s Licensing Accreditation and Regulatory Unit (LARU).

The Commission, in partnership with the OCP and the LARU has established an secure, online portal called the Notifiable Incident Management System (NIMS) for the reporting of Notifiable Incidents by all providers.  

NIMS enables mental health service providers and AOD service providers to report Notifiable Incidents to one or more relevant government agencies. 

Effective 16 September 2024, notifiable incidents are to be reported through the Notifiable Incident Management System (NIMS).

To use NIMS, providers must be registered. To establish registration, providers should email the NotifiableIncidents@mhc.wa.gov.au.

For Staffed Residential Services

All Private Psychiatric Hostels and Supported Accommodation Providers (excluding Step Up Step Down services) are required to report Notifiable Incidents to three government agencies: the Commission, the OCP and the LARU.

All NGOs providing psychiatric hostel services and support accommodation services should report Notifiable Incidents to all three government agencies using NIMS by selecting the “OCP Private Psychiatric Notifiable Incidents Form”. 

Find out more

For NGOs providing mental health services that employ clinicians (including Counselling Face to Face)

All NGOs providing mental health services that employ clinicians should report Notifiable Incidents to the Commission and the OCP by using NIMS and selecting the form :“OCP Notifiable Incident Form for NGOs providing mental health services that employ clinicians”.  

Find out more

All other Mental Health Services 

All other Mental Health Services should report Notifiable Incidents using NIMS and selecting the “MHC Notifiable Incident Form”.

All AOD Services 

All AOD services should report Notifiable Incidents using NIMS and selecting the “Notifiable Incident Report Form for Alcohol and Drug service providers”.

The Commission is currently revising its Notifiable Incident policy and procedure to incorporate NIMS. This will be made available soon.  

Stay connected with Stakeholder Connect!

Subscribe to Stakeholder Connect, the Commission’s e-Newsletter, to stay informed and updated on key sector projects, progress on key initiatives, and opportunities to get involved in research, consultation and advisory groups.

Subscribe now

Page last updated19 August 2026

Back to Top of the page