A new mental health service is set to help young people with mental illness find work.
The service will be run out of Tamworth headspace, which is part of Centacare.
The new individual placement and support program, which will be funded by the federal taxpayer, will cost $45.7 million nationwide.
MP Barnaby Joyce said the program would help tear down barriers preventing people with a mental illness from joining the workforce.
"The program is a tailored approach that can help improve job outcomes for young people with mental illness," he said.
"This is fantastic news for the local community because we know career assistance, hand-in-hand with clinical support, can make a profound difference in the lives of young people and ensure they can reach their full potential."
Cities like Wagga Wagga, Dubbo and Grafton will also get access to the new program.
All told some 6000 young people under the age of 25 will get help under the new program over the next four years, nationwide.
Chief Executive Officer of Tamworth Aboriginal Medical Service, Robert Berwick, said he was sceptical of the effectiveness of the new institution.
He said he is concerned current models don't always provide an environment young people will access.
"I look forward to the recognition that any future youth targeted mental health initiative in the area involves youth and is a youth-safe environment and not just a clinical environment for youth to access," he said.
Professor Patrick McGorry, executive director of Orygen, which runs the program with headspace, welcomed the Government's commitment.
"The onset of mental illness often occurs in young people which, by the age of 25, can significantly affect their ability to transition from study to work," he said.