A ROSEBUD youth service charity is facing an uncertain future after a federal government decision to redirect mental health funding away from local initiatives.
Jimmy’s Youth Wellbeing Sanctuary manager Jeanette Horsley said they had been told that by 30 June the federal government’s funding currently committed to Jimmy’s would cease.
She added that there would be “no ongoing or recurrent funding due largely to the commitment by the Australian government to channel critical mental health dollars into national projects and Primary Health Networks”.
“While we understand the strategic thinking behind these decisions and remain extremely grateful for the very positive impact this financial contribution has made over the past four years, the loss of funds will leave our much-needed services extremely vulnerable and subject to service reductions,” Horsley said.
Since opening in 2020/21 on Point Nepean Rd, the sanctuary has supported young people facing a wide range of challenges, including mental health issues, neurodiversity, and behavioural concerns.
“Young people today are faced with significant challenges, regardless of socioeconomic and/or environmental factors,” Horsley said.
She said digital technology was reshaping how young people engaged in the world.
“While young people are able to access ideas, information, images, news and events from around the world through digital technology, it is the technology that is actually limiting their curiosity, creativity, breadth of ideas and understanding of bigger picture issues.
“They are losing the ability to communicate with ‘real people’ and engage in meaningful conversations that challenge ideas, beliefs and thinking – creating new and interesting learning.”
The sanctuary has provided a purpose-built space for programs focused on four key pillars: stilling the mind, moving the body, nutrition, and “firing up the brain”.
The Jimmy’s Foundation covers building maintenance and utilities, with additional support from local businesses and community donations. The building is owned by Jimmy’s Foundation and programs are run by YMCA Youth Services.
A letter seen by The News from the Health Minister Mark Butler to YMCA Victoria on 2 February, said “supporting young people to reach their full potential is a key priority for the Australian government and we will continue to increase our investment in youth mental health services”.
“In relation to supporting other youth mental health programs the government funds Primary Health Networks (PHNs) to plan and commission mental health and suicide prevention services to meet local need. I encourage you to contact your local PHN to discuss any upcoming funding opportunities,” the letter stated.
Horsley said their challenge after June was covering operational costs.
“We have some amazing local support but to continue to meet our current service demands, we will need a significant amount more to make up the shortfall currently supported by federal government funds.”
The federal Health Department has been contacted for comment.
First published in the Mornington News – 24 February 2026
