Mental Health Innovation Fund Expanded to Boost Access Nationwide

The New Zealand Government has unveiled Round Three of its Mental Health and Addiction Innovation Fund, introducing key reforms designed to widen access for grassroots organisations and accelerate frontline support across the country.

Mental Health Minister Matt Doocey said the changes reflect direct feedback from the sector and aim to remove barriers that previously limited participation.

Policy Shift to Unlock Grassroots Innovation

At the centre of the overhaul is a significant change to funding requirements, easing compliance burdens for community organisations.

Previously, applicants were required to submit a full independent Social Return on Investment (SROI) report upfront—often a costly and resource-intensive process. Under the new model:

• Applicants will now submit a proposal outlining expected outcomes and impact measures

• A full external SROI report will be completed at the end of the project

• Matched funding can be used to cover up to half of the SROI evaluation cost

"This approach opens the door for greater access to the Innovation Fund, while still maintaining robust evaluation and evidence," Doocey said.

Expanding Reach After Proven Early Success

Since its launch, the Innovation Fund has already supported 19 organisations nationwide, delivering targeted services to diverse and often underserved groups.

Funded initiatives have included:

• Online safety programmes for young people

• Support services for young mothers

• Women's Refuge initiatives

• Community-based crisis cafés

• Mental health support tailored to the construction sector

Officials say these projects demonstrate the value of locally designed solutions in addressing complex mental health and addiction challenges.

Lower Barriers, Broader Participation

The latest changes build on earlier reforms introduced after Round One, when organisations flagged the $250,000 matched funding requirement as a major barrier.

In response:

• The threshold was reduced to $100,000 in Round Two

• Round Three further improves accessibility by reducing upfront compliance costs

Together, these adjustments are expected to significantly increase the number and diversity of applicants, particularly among smaller community organisations.

Aligning with National Mental Health Strategy

The Innovation Fund is a key component of the Government's wider mental health plan, which focuses on:

• Faster access to support services

• Expanding the frontline mental health workforce

• Strengthening crisis response systems

"Grassroots community organisations play a big role in helping us achieve that," Doocey said.

Data-Driven Outcomes with Flexibility

While the application process has been simplified, the Government has retained a strong emphasis on measurable outcomes and accountability.

The revised SROI model ensures:

• Clear tracking of social impact and value for money

• Evidence-based evaluation at project completion

• Better alignment between funding and real-world results

This hybrid approach balances flexibility for providers with the need for rigorous performance assessment.

Thousands to Benefit from Expanded Access

The reforms are expected to extend support to thousands more New Zealanders, particularly in communities where access to mental health services remains limited.

By empowering organisations that "know their communities best," the Government aims to foster innovation in service delivery while improving equity in mental health outcomes.

Sector-Led Reform Signals New Approach

Doocey emphasised that the changes were shaped directly by feedback from the mental health sector, marking a shift toward more collaborative policy design.

"This idea was born from talking to the sector, so it is only right they have a say in the changes," he said.

As Round Three opens, the Government is positioning the Innovation Fund as a more inclusive, flexible, and impact-driven platform—one designed to scale community-led solutions and strengthen New Zealand's mental health system from the ground up.