The Second National Mental Health Report was released in June 1995 and documents progress in the 1993‐94 financial year in implementing the five‐year National Mental Health Plan. Expenditure on mental health rose by 4.1% and on community mental health services by 9.2%. State and Territory funding for non‐government mental health services rose by 18% and more resources for those with disability were made available to those with psychiatric disability. The number of occupied‐bed‐days in standalone psychiatric hospitals fell by 10%. While the report shows that Australia has moved generally in the agreed direction, considerable work remains to be done in this historically neglected area.