Alcohol and Other Drugs (AOD) Place-Based Treatment

Alcohol and Other Drugs (AOD) Place-Based Treatment is sponsored by Department of Health, Disability and Ageing. Supports delivery of evidence-informed alcohol and other drug treatment services in place-based settings to address addiction and substance abuse.

Drug and Alcohol Program Consultations - Stage 1 - Australian Government Department of Health, Disability and Ageing Drug and Alcohol Program Consultations - Stage 1 Responsibility for alcohol and other drugs (AOD) policy is shared by the Australian and state and territory governments, with distinct but complementary roles. States and territories have primary responsibility for AOD services at the jurisdictional level.

This includes leading the planning, design, funding, commissioning, and delivery of comprehensive AOD service systems within their health jurisdiction. The Australian Government’s primary responsibility is at the national level. Its role focuses on national leadership and system-wide functions, such as setting national priorities and funding and commissioning nationally delivered services and initiatives across the spectrum of care.

The Drug and Alcohol Program (DAP) is a key Australian Government AOD health program within this broader system. The DAP currently funds a mix of national prevention, treatment, research, and data activities. A core feature is funding Primary Health Networks (PHNs), enabling local commissioning based on need and better connections with primary care and other services.

In addition, the program includes a smaller amount of supplementary funding for state and territory treatment services and peak bodies, which plays a secondary but important role in supporting access and system capacity. In 2025, the Department of Health, Disability and Ageing (the department) commissioned an evaluation of the DAP .

The evaluation confirmed stakeholders valued the DAP, but reform was needed to more confidently demonstrate outcomes and improve efficiency. Through the 2025–26 MYEFO, the Australian Government agreed to consolidate the DAP’s terminating and ongoing funding into a single ongoing program. From 2026–27, $727 million will be invested over three years, followed by $244.

2 million annually from 2029–30 onwards. The government also agreed to extend all current DAP grants due to end in June 2026 for one year. This transitional measure provides certainty and stability to the AOD sector while the department consults with it on changes to the DAP for the next round of three-year grant agreements which will commence on 1 July 2027.

The redesign will not change the fundamental objectives or service types and consultations will focus on updating the program logic (a high-level framework that explains how key program inputs and activities are expected to lead to outcomes) and key performance indicators (KPIs). The public consultation will be undertaken in three stages via this Consultation Hub. Stage 1 (20 February – 13 March): Occurring now.

Feedback is being sought on the draft Program Logic and draft KPIs (link also found below under 'related items'). Stage 2 - (indicative dates: 16 March – 13 April): A live webinar with a moderated Q&A function will be held and recorded for publication on the Consultation Hub. Departmental representatives will provide an update on feedback received to date and how it is being addressed.

Feedback on the updated versions of the DAP program logic and KPIs, along with the proposed data inputs to inform the development of a needs-based funding model, will be sought via a survey. Stage 3 (indicative dates: after 13 April): A pre-recorded video will be published on the Consultation Hub. It will provide a summary of the feedback received through the consultation process and any resultant changes to consultation materials.

The department will not be seeking feedback on: which grants will be subject of competitive processes - the department will determine this as part of the grant design process the development of Grant Opportunity Guidelines for DAP funding the development and design of the needs-based funding model (noting feedback on the data inputs for the model will be sought during stage 2 of the consultation process).

Key information and Q&As will be updated throughout the consultation process as the department receives questions through the survey. The department recognises the value of gathering and genuinely considering stakeholder feedback as part of the DAP reform process.

Services providers, sector representatives, PHNs, researchers, state and territory government departments, people with lived and living experience, and consumers are key actors in the AOD service and policy system. Each is uniquely placed to consider the potential impact of proposed reforms on their part of the system and the extent to which such reforms might impact other parts of the system.

Each brings valuable knowledge which the department is keen to harness as part of ensuring that any reforms pursued work to enhance the AOD service and policy system as a whole.

DAP Program Logic and KPIs Drug and Alcohol Program Consultations - Stage 2 Drug and Alcohol Program Consultations - Stage 3 Aboriginal and Torres Strait Islander People Contracted Service Providers Non-government organisations State government agencies Drugs and substance abuse