A report on the Time for Service says mental health funding of up to $2 billion a year for the following 5 years was being made.
It added, about 13 percent of 'disease burden' comes from mental health problems.
NSW government's share of $338 million and federal government's share of $1.8 billion are made to reform mental health - it says.
Professor Allan Fels and Ian Hickie, Mental Health Council board member jointly said this was the right time to reform.
Simply treating the people in acute-care and not making any recovery reforming facilities will be crucial - report says. Lifeline CEO Dawn Smith said federal government's initiatives regarding mental health were came but more efforts are in need to fulfill.
Ms Smith says that 650 respite care places and 900 personal helpers placed by the federal government is an appreciable step.