Hundreds of mental health services have had their funding extended by a year after weeks of uncertainty.

But the reprieve is only temporary, with Health Minister Sussan Ley saying the $300 million dollar boost would allow more time to put long-term plans in place.

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“It’s important this opportunity for positive reform isn’t rushed,” Ms Ley said.

The approaching deadline for funding was June 30.

St Vincent’s Health Australia has welcomed the “significant certainty” the decision will bring to the mental health sector, but called for more funding in the long term.

“Given the undisputed level of unmet demand, we believe there’s a strong case for increasing funding, particularly for services with demonstrated impact,” said St Vincent Health’s CEO Toby Hall.

“As the Minister turns her mind to the long-term, she should recognise that at the very least the Commonwealth needs to maintain its current levels of investment in mental health.”