Work begins on Watson Health Precinct, including dedicated First Nations rehab facility

aerial view of construction site

Construction of the Watson Health Precinct is expected to take 12 months. Photo: ACT Government.

Work has begun on the $49 million knock-down rebuild of the old Watson Hostel site to provide a fresh home for residential youth mental health care and drug and alcohol rehabilitative services.

The precinct will also expand to include a new residential rehabilitation facility specifically for Aboriginal and Torres Strait Islander people, designed, constructed and operated by Winnunga Nimmityjah Aboriginal Health and Community Services.

Demolition began in February, with construction to begin in May.

Health Minister Rachel Stephen-Smith welcomed the construction milestone as a key step toward delivering a modern, inclusive and culturally safe environment that will support recovery and wellbeing.

“With new and upgraded facilities, the Watson Health Precinct will continue to provide live-in alcohol and other drug rehabilitation services for young people through the Ted Noffs Foundation, alongside residential care for young people experiencing mental health challenges, provided by Marymead CatholicCare,” she said.

“The establishment of a residential alcohol and other drug facility for Aboriginal and Torres Strait Islander people fills a service gap in the ACT and increases culturally appropriate treatment options in the territory.”


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Winnunga Nimmityjah Aboriginal Health and Community Services CEO Julie Tongs has previously highlighted the importance of providing a space for Indigenous people to heal on country, and described the 24-bed facility as a “real game changer” for Canberra.

“The new residential rehabilitation facility is designed to support the need for both cultural and therapeutic programs, specifically designed indoor and outdoor spaces to allow for a holistic approach for all programs to be delivered seamlessly,” she said.

The number of beds for both the Marymead and Ted Noffs Foundation programs will double as a result of the rebuild.

Marymead delivers the STEPS program for teenagers who are experiencing moderate to severe mental health issues.

Marymead CatholicCare Canberra & Goulburn CEO Anne Kirwan said a young person’s environment played a “vital role” in their mental health recovery.

“This redevelopment will allow us to create a welcoming, therapeutic space surrounded by nature and designed with the comforts of home where young people can feel safe, supported, and empowered to work towards their wellbeing goals,” she said.

Ted Noffs Foundation national programs manager Lachlan Dean welcomed the progress, which will allow more young people to receive help.

“Seeking support for drug and alcohol treatment is a massive step for any young person to undertake,” he said.

“Having a space that is designed and created to allow young people to feel safe and comfortable and promote treatment removes one barrier to young people accessing support.”


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The $49 million was committed in the 2023-24 ACT Budget.

It was expected that construction would begin by early 2024, but an ACT Government spokesperson said there had been a delay.

“Legislative changes led to a redesign, which resulted in a protracted DA outcome,” they said.

“The DA was approved in late 2024.”

Construction on the Watson Health Precinct is now expected to be completed in mid-2026.

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