Drug Treatment Grants in Australia: Funding Alcohol and Other Drug Services

Substance use disorders affect approximately 1 in 6 Australians each year. Alcohol and other drug (AOD) issues cost Australia approximately $65 billion annually — through healthcare, lost productivity, crime, and justice system costs. Methamphetamine (ice) has devastated regional communities. Opioids — both prescription and illicit — remain a major challenge. Harm reduction approaches (needle exchange, naloxone, safe injecting) save lives. Grant funding supports residential rehabilitation, community-based drug treatment, harm reduction, peer support, and the systems that help Australians overcome addiction.

Substance use in Australia

Scale

  • Approximately 1 in 6 Australians experience a substance use disorder annually
  • Alcohol: the most-used and most-harmful substance
  • Cannabis: most commonly used illicit drug
  • Methamphetamine (ice): approximately 1.3% of Australians use annually; disproportionate harm
  • Opioids: approximately 1.5 million prescribed; significant dependence and overdose risk
  • MDMA, cocaine: increasing use

Who is affected

  • Regional and rural Australians (higher ice use rates)
  • Aboriginal and Torres Strait Islander Australians (higher rates, different patterns)
  • People with co-occurring mental illness (dual diagnosis very common)
  • Young people (peak initiation age)
  • People experiencing homelessness
  • People with trauma histories (substance use as coping)

The methamphetamine crisis

Ice (crystal methamphetamine) has had profound impacts on regional Australia:
- Associated with violence, family breakdown, child abuse
- Difficult to treat (no approved pharmacotherapy)
- Long-lasting cognitive effects
- Increasing purity and use rates

Government AOD funding

Department of Health

  • National Drug Strategy
  • AOD treatment funding (via PHNs)
  • Nicotine replacement therapy

PHNs (Primary Health Networks)

Commission AOD treatment services in their regions.

Alcohol and Drug Foundation

Government-supported national prevention and treatment organisation.

Department of Social Services

Some community-based AOD support.

Philanthropic AOD funders

Alcohol and Drug Foundation

Prevention and early intervention.

The Salvation Army

Rehabilitation services.

Odyssey House

Therapeutic community rehabilitation.

Uniting Care

Community AOD services.

Foundation for Alcohol Research and Education (FARE)

Alcohol reduction research and advocacy.

The Ted Noffs Foundation

Youth drug treatment.

Types of funded drug treatment programmes

Residential rehabilitation

  • Therapeutic communities (Odyssey House, WHOS model)
  • Short-term detox (7-28 days)
  • Long-term rehabilitation (3-12 months)
  • Faith-based rehabilitation
  • Indigenous healing and rehabilitation

Community-based treatment

  • Community AOD counselling
  • Outpatient programmes
  • Day programmes
  • Intensive community treatment

Pharmacotherapy

  • Opioid Substitution Treatment (OST): methadone, buprenorphine
  • Naltrexone for alcohol and opioid dependence
  • Medicated-assisted treatment (MAT) access
  • Community prescribing

Harm reduction

  • Needle and syringe programmes (NSP)
  • Naloxone distribution and training
  • Drug checking services
  • Safe injecting facilities (limited — Sydney MSIC)
  • Drug-related health education

Youth AOD

  • Youth-specific counselling
  • School-based AOD prevention
  • Youth residential rehabilitation
  • Family support when young person using

Indigenous AOD

  • Community-controlled AOD services
  • Culturally safe rehabilitation
  • Ice and alcohol programmes for Indigenous communities
  • Healing country approaches
  • Family-centred programmes

Peer support

  • 12-step programmes (AA, NA)
  • SMART Recovery (non-12-step)
  • Peer workers in AOD services
  • Consumer-run programmes

Dual diagnosis

  • Co-occurring mental illness and AOD
  • Integrated treatment (treating both simultaneously)
  • Mental health workers in AOD services

Aftercare and recovery

  • Post-rehabilitation support
  • Relapse prevention
  • Recovery housing (drug-free supportive housing)
  • Employment after treatment
  • Social connection in recovery

Research

  • Treatment effectiveness research
  • Harm reduction evidence
  • New pharmacotherapy research
  • Implementation science

Harm reduction: saving lives while people are not yet ready for recovery

Harm reduction accepts that some people will use drugs and focuses on reducing the harm from use:
- Needle exchange prevents HIV and hepatitis C transmission
- Naloxone (Narcan) reverses opioid overdose — saves lives
- Drug checking services reduce overdose from unknown substances
- Safe injecting rooms provide medical supervision during use

These approaches are evidence-based and cost-effective. The Sydney Medically Supervised Injecting Centre has supervised over 1 million injections and reversed approximately 13,000 overdoses without a single death.

Grant application considerations

Evidence-based treatment

The AOD field has strong evidence for some approaches (pharmacotherapy for opioid use disorder, therapeutic communities, brief intervention). Applications based on evidence-based models are more credible.

Harm reduction

Harm reduction saves lives and is cost-effective — but remains politically contested. Applications that articulate the public health evidence for harm reduction alongside treatment are more sophisticated.

Dual diagnosis

Most people with severe AOD problems also have mental health conditions. Applications that integrate mental health and AOD treatment (rather than siloing them) are more aligned with evidence.

Indigenous AOD

Applications for community-controlled, culturally safe AOD programmes for Indigenous Australians — including healing approaches that go beyond Western treatment models — are distinct from mainstream AOD.


Tahua's grants management platform supports AOD funders and drug treatment organisations — with client outcome tracking, treatment completion data, harm reduction reach measurement, and the reporting tools that help AOD funders demonstrate their investment in recovery and harm reduction for Australians affected by substance use.

Book a conversation with the Tahua team →