The federal government announced on Thursday a new system that is less Canberra-driven and which gives primary health networks greater flexibility when it comes to helping people.

Providers welcomed the reform, describing it as “significant” for people experiencing anything from mild anxiety to psychosis.

Matt Jones, chief executive of Murray PHN (Primary Health Network), said the announcement was “really good for our region”.

“I think this places the individual very much at the centre of accessing mental health services,” he said.

“It will mean there is going to be substantial structural changes to the way mental health services are provided throughout the region.”

With a system geared more towards identifying the needs of individuals, fewer people in smaller communities would miss out on services because of where they lived, Mr Jones said.

“This will be very geared around individuals identifying what their needs are and then being able to access services.”

Mental Health Commissioner Jackie Crowe, in Bendigo for the launch of a consumer mental health project at PHN, said the region could move away from a system that often left people “suffering in silence”.

“The big problem is lack of access to effective services,” she said. “The reform package, once rolled out, we believe will change that.”