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Mental Health Capital Renewal Fund

The Mental Health Capital Renewal Fund provides vital funding to mental health facilities across Victoria.

The $10 million fund responds directly to recommendations from the Royal Commission into Victoria’s Mental Health System. It aims to address physical safety and wellbeing risks in Victoria’s mental health facilities.

The funding will deliver minor infrastructure works, such as remodelling and refurbishment projects to improve safety for carers, consumers and staff.







The fund provides investment for projects that:

  • ensure a secure working environment for consumers and staff
  • mitigate accessibility and safety risks
  • enhance amenities
  • replace aging building engineering services
  • improve staff areas, systems, and technology
  • address damaged and severely deteriorated building fabric.

The Mental Health Capital Renewal Fund aims to achieve the following benefits:

Enhanced safety

Projects will prioritise safety while maintaining a therapeutic and least restrictive environment for consumers.

Support growing demand

Upgrades to clinical services and increased capacity ensure local communities can access the treatment they need when they need it. Greater flexibility in delivering support it will also reduce the number of crisis situations and flow on to emergency services.

Improved patient outcomes

Modern facilities and equipment will support the delivery of enhanced and contemporary models of care. This improves patient outcomes and wellbeing.

Enhanced working environment

Improvements and upgrades to existing working areas for staff and medical professionals will ensure they can continue to provide high quality care in a safe environment. Updated systems and technology can also reduce administrative burden, and increase time dedicated to consumer care.

Stronger local economies

Construction and upgrades of public health care services provide opportunities for local trades and businesses to undertake project-based work. This contributes to the economic viability of Victorian communities.

The expansion of public health care services can also provide ongoing employment opportunities for medical and healthcare professionals and create employment pathways for younger generations.

Submissions for the 2023-24 funding round opened at 12pm, Wednesday 29th November 2023 and closed at 5.00pm Monday 5 February 2024.

Full details regarding the funding round submissions can be found in the Mental Health Capital Renewal Fund – Guidelines. Supporting information is also available in the Mental Health Capital Renewal Fund - Frequently asked questions.

Eligibility criteria

Funding is available to all area mental health services. The list of eligible agencies is in Appendix 2 of the Mental Health Capital Renewal Fund - Guidelines.

Please note:

  • submissions are limited to one per agency
  • project value shall not exceed a maximum of $1,000,000 (excluding GST) for minor refurbishment, repairs, replacement, reconfiguration and upgrade projects
  • projects must be completed within 18 months notification of funding approval.

The fund is designed for minor construction, remodelling, and refurbishment capital works across the following key areas:

  • health and safety risk mitigation: mitigate the risk of serious incidents and balance the need to provide safety with service provision in a therapeutic and least restrictive environment
  • compliance: ensuring all facilities are compliant with Disability, Building Regulatory Compliance (BRD), Essential Safety Measures (ESM), and Occupational Health and Safety (OH&S)
  • quality: improve treatment service quality and efficiency of facilities.

The following are examples of items which may be included in funding applications:

  • construction: minor infrastructure including, remodelling and refurbishment projects to address safety issues
  • non-construction: equipment (standalone furniture, fittings, medical equipment, engineering infrastructure and plant)
  • information and communications technology (ICT)
  • new technologies: including systems to reduce usage and increase efficiencies of power and / or water.

Priority will be given to applications that:

  • improve consumer, carer, and staff safety through capital investments that balance safety with the need to provide services in a therapeutic and least restrictive environment into existing facilities
  • improve amenities to enhance recovery, rehabilitation, and therapeutic opportunities
  • minimise the use of restrictive practices or clinically inappropriate environments and improve treatment service equality and efficiency of outcomes
  • upgrade essential infrastructure such as plant equipment and address at-risk asset failure.

Please see the Mental Health Capital Renewal Fund - Guidelines for information on assessment criteria and conditions of funding.

All submissions must be made online via SmartyGrants. You will be required to create a password-protected log-in to access the application form.

The application should address the selection criteria and include:

  • a full description of the key deliverables
  • funding sought (excluding GST)
  • likely benefits
  • how key risks should be mitigated.

The following supporting documentation is required:

  • quotes for supply/installation including provision to ‘make good’
  • a cost plan (including associated decanting costs, enabling infrastructure works, site/infrastructure costs, demolition, fees, contingency allocation)
  • information on scope, governance, timelines, deliverables, and benefits including lifecycle costings and payback periods (if applicable – where additional revenue and or cost savings are anticipated from the solution proposed, you must complete the ‘Asset Lifecycle costing spreadsheet’. Cost savings or additional revenue generated will be considered favourably)
  • independent reports highlighting risk and / or compliance issues including proposed solutions.

All applications must be:

  • from an eligible agency
  • endorsed by the Chief Executive Officer
  • submitted via the online portal SmartyGrants application form and include relevant supporting documentation (e.g. business case, design drawings, photos, cost plans, quotations, and other supporting information)
  • received no later than the SmartyGrants closing date and time: 5.00 pm, Monday 5 February 2024.

Unless exceptional circumstances apply, applications received after the specified time and date are deemed ineligible for consideration.

Additional supporting documentation is available:

If you require assistance when preparing an application, please email the mental health capital renewal fund team.

For technical assistance completing the Smartygrants form:

Projects funded through the Mental Health Capital Renewal Fund are administered by the Victorian Health Building Authority.

These projects are delivered by the public funded health service provider.

Mental Health Capital Renewal Fund projects

Mental Health Capital Renewal Fund projects

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Mental Health Capital Renewal Fund projects

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