The NSW government says it will fight every step of the way to ensure the state gets its share of federal funding to reform mental health services.
NSW Mental Health Minister Kevin Humphries said he had already spoken to his commonwealth counterpart, Nicola Roxon, and would be working closely with her.
"Given NSW is home to a third of Australia's population, it is essential that NSW receives our full and proper share of funding announced," he said in a statement.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
"We will be fighting every step of the way."
Mr Humphries pointed to the state's older and more rapidly-ageing population, and large prison population.
"Mental health care is an issue that transcends politics and the NSW government stands ready to work with the federal government to tackle it," he said.
In the 2011/12 budget, handed down on Tuesday, the federal government said it would spend a further $1.5 billion over five years on mental health, taking the total expenditure to $2.2 billion.
Mr Humphries also said the federal government was following the lead of the NSW coalition government by deciding to set up a national Mental Health Commission.
"As we have argued from opposition and in government, a Mental Health Commission is important to setting standards nationally and ensuring taxpayers funds are well spent," he said.
