The $7.8 redevelopment, announced in the 2016-17 budget, will be largely completed this coming financial year, supported by a $6.2 million investment in Thursday’s state budget.

The beds will then be funded by $11.1 million over the forward estimates.

There is $113.7 million overall in the Tasmanian Health Services budget for statewide mental health services.

The government will spend $11.8 million on infrastructure costs for 25 new mental health beds in the South with $6.8 million provided in 2018-19 and $5 million the year after.

These beds will be supported by $16.4 million in funding over the forward estimates.

The beds are intended to be used to avoid hospitalisation or to provide support post-hospitalisation.

There is $120,000 in funding over two years for the MHCT to develop with the government a mental health and suicide prevention workforce strategy.

Mental Council of Tasmania chief executive Connie Digolis acknowledged the government’s level of funding for the mental health area but said the needed to be more clarity on the timelines of funding commitments.

She said she supported the government’s focus on community-based and co-delivery options for mental health patients with reference to the new beds at Hobart’s Mistral Place and the Peacock Centre.

The budget also shows a continuance of funding for mental health outreach service Rural Alive and Well with $1.1 million over the next two years, including $380,000 specifically for older people.