In response to the situation, psychiatrists proposed a 25% salary increase in a single year to align their pay with that of their counterparts in other states, a request that the government has rejected.

The government's counteroffer included a 10.5% wage increase over three years, a 10% allowance for onerous duties, and a 4.5% pay rise for all government employees from the previous year.

Dr. Pramudie Gunaratne from the Royal Australian and New Zealand College of Psychiatrists has criticized the government for failing to adequately address the workforce crisis impacting mental health care.

In light of the potential resignations, the government is exploring alternative solutions, such as relocating psychiatric patients to private hospitals and hiring locum psychiatrists to ensure service continuity.

To manage the situation, the Department of Health has paused processing resignations to avoid administrative complications, and some psychiatrists are delaying their resignations.

Minister for Mental Health Rose Jackson has publicly acknowledged the compelling case made by psychiatrists and announced the government's request for urgent arbitration.

The New South Wales government is urgently seeking intervention from the Industrial Relations Commission to address a looming mass resignation of psychiatrists.

This crisis is exacerbated by the fact that one-third of psychiatrist positions in the state are currently vacant, leading over 200 psychiatrists to threaten resignation after prolonged negotiations for better pay.

Many psychiatrists have indicated that January 21, 2025, will be their last working day, which could significantly impact mental health services in the region.

The majority of resignations are expected from metropolitan areas, while regional New South Wales may experience less disruption due to a higher number of visiting medical officers.

Despite the doctors' union rejecting previous offers, the government is open to negotiating specifically with psychiatrists, separate from broader discussions.