A months-long standoff between public sector psychiatrists and the New South Wales government ends with a significant pay rise, aimed at easing staff shortages and stabilising mental health care. The temporary 20% increase follows mass resignations and warnings of systemic collapse.
Mental Health System ‘On the Brink’ before Tribunal Intervention
Public sector psychiatrists across New South Wales (NSW) have secured a 20% pay increase, following a protracted industrial dispute that saw dozens of doctors resign and hundreds more threaten to leave. The NSW Industrial Relations Commission (IRC) handed down the decision on Friday, citing the need to stabilise a system described as being in “crisis”.
The ruling marks a turning point in a conflict that has gripped the state’s public health sector for nearly a year. At the heart of the issue were long-standing complaints over unsustainable workloads, low pay relative to other states, and growing concerns about staff retention in mental health units.
In December 2024, more than 150 psychiatrists threatened to resign en masse, escalating pressure on the Minns government and the Minister for Mental Health, Rose Jackson. By January, 43 psychiatrists had formally quit, prompting fears of a cascading collapse in public mental health services.
Justice David Chin, delivering the IRC’s ruling, acknowledged the risk of further deterioration in patient care and argued that the pay increase was necessary to avoid “significant adverse economic impacts” for both staff and patients.
A Temporary Solution amid Ongoing Negotiations
The IRC’s decision introduces a 12-month interim uplift, combining a 10% “attraction and retention allowance” with an existing 10% “abnormal duties allowance” previously offered by the government. This temporary measure, according to the IRC, is designed to prevent an immediate staffing crisis while broader contract negotiations continue.
According to Ian Kobel, councillor for the Australian Salaried Medical Officers Federation (ASMOF), the ruling reflects months of hearings, expert evidence, and direct testimony highlighting the toll that staff shortages have taken on community mental health.
“This is an appropriate, modest and necessary pay increase,” he said, adding that it will bring NSW psychiatrist remuneration closer in line with other states.
Despite the agreement, the situation remains unresolved in the long term. The Doctors Union and the state government are still negotiating a three-year award for all medical staff. Hearings are set to resume in November, and union representatives hope for a final decision early next year, before the interim ruling expires.
Minister Rose Jackson welcomed the decision as a “positive outcome”, while union officials noted that it provides temporary relief but does not yet represent a permanent solution to workforce pressures in the mental health sector.
