The NSW Government wants to change the verdict in court cases where the defendant is found to be mentally ill, saying victims of crime have been calling for the change.
A bill has been introduced to Parliament which would replace 'not guilty by reason of mental illness' with a verdict to be known as 'act proven but not criminally responsible'.
A mentally ill defendant can currently be found not guilty of an offence despite a court concluding they committed it.
"If someone is so mentally or cognitively impaired they don't understand what they've done or the morality of what they've done, then there are no criminal consequences," NSW Attorney General Mark Speakman said.
The bill, which is an Australian first, would protect those impaired people while acknowledging a crime had been committed.
"This is about making sure the criminal justice system respects the trauma and the pain of victims and their family members, recognises that the act has been done notwithstanding that the accused is not criminally responsible," said Mr Speakman.
The NSW Minister for Mental Health, Bronnie Taylor said victims and survivors of crime have been calling for the change.
"I think today is an important day for those families which have suffered trauma through our system and undeniable and very acute pain," said Ms Taylor.
The Attorney General said the verdict isn't commonly used.
"Less than 2 per cent of cases in the Local Court involve that sort of diversion," Mr Speakman said.
The Government said victims' groups, mental health professionals, disability advocates and legal expert were consulted in the drafting of the bill.
