headspace, the National Youth Mental Health Foundation is an Australian Government initiative first funded as part of the Federal Budget commitment to the Youth Mental Health Initiative (2005–06 to 2008–09), and launched in 2006. It aims to promote and facilitate improvements in the mental health, social wellbeing and economic participation of young Australians aged 12-25 years. This interim report is structured around the logic model of headspace to provide an understanding of how headspace works, the progress achieved thus far, and the factors that have facilitated and hindered establishment and implementation. For headspace to achieve its aims, it is critically important that headspace is delivering the required services, that young people are accessing these services, and that the services are appropriate and of quality. It is also important that headspace has started the process of establishing referral pathways beyond the Communities of Youth Services CYSs, and that it is having some impact on broader service reform.