$160m mental health boost fills system gap

A multimillion-dollar national mental health plan, rolled out next month, will hopefully help people who fall outside the scope of the National Disability Insurance Scheme.

Health Minister Greg Hunt on Saturday announced $160 million for a new national psychosocial measure for people with severe mental illness following an agreement between the federal and state and territory governments.

The scheme is designed to help people who are not the target of the NDIS but would benefit from specialised, less intense psychosocial services, Mr Hunt said.

Mental Health Australia chief executive Frank Quinlan welcomed the announcement, saying there'd been concern for those ineligible for the NDIS who still needed support from community-based services.

The scheme will roll out in July.