SEVERAL key mental health groups have responded positively to the FEderal Government's announcement of a complete overhaul of the mental health system.

Chairman of beyondblue Jeff Kennett said today's announcement by the Government is a defining moment for mental health care in Australia and he commends Health Minister Sussan Ley for having the courage to instigate structural reform by dismantling a badly-integrated system in favour of building a regional one that works for people closer to home, wherever they live in Australia.

"It's about time someone had the guts and foresight to overhaul the system to focus on the needs of people rather than providers. We need to get the maximum bang for our buck by spending taxpayers' dollars where they have the greatest impact.

"This is exactly the kind of leadership we need to help the three million people who at any one time have depression or anxiety, and the hundreds of people who attempt to take their lives or the seven who die by suicide every day in Australia - and their families."

The Government's reinvigorated mental health system appears to have a stronger focus of regional communities with more funds being directed to the Primary Health Networks in these communities.

"beyondblue supports in principle the Government's redirection of funds to the Primary Health Networks (PHNs) because they are best placed to understand local needs, and to deliver and monitor performance and outcomes for their communities," Mr Kennet said.

"The introduction of low-intensity early intervention services is extremely welcome and beyondblue's successful NewAccess program proves this works. We look forward to assisting the PHNs in any way we can.

"However, we do have some reservations about the level of support the PHNs will need to help them adjust to their rapidly increasing responsibilities. This will demand exemplary governance and having people with personal experience of mental illness and suicide at the table to ensure they understand the complexities of mental health issues in their communities."

The government's mental health plan also looks to streamline access for youths by cutting the myriad of school based and non-school based programs to replace with one single initiative.

There is also a new approach to suicide prevention and the commitment of additional funds to provide team-based support for Aboriginal and Torres Strait Islander people who are at greater risk of psychological distress and suicide than the broader Australian community.

beyondblue's Way Back Support Service trial, which supports people who are released from hospital following a suicide attempt, is proving to be very successful and we look forward to working with all tiers of government and the PHNs to see how well this would fit into a stepped care model.

SANE Australia also welcomed the government's renewed commitment to mental health and the protection of its communities.

"It's not about the number of services or consultations, it's about reaching more people and improving more lives and the lives of those who love them," said Jack Heath, SANE Australia CEO.

"Late help is always expensive help, connecting with people early on saves dollars and saves lives."