Mentally Healthy Workplaces: The $12 Billion Case for Action
Poor workplace mental health is already costing Australia an estimated $12 billion a year, and a new national report warns that figure could more than double by 2041-42 unless employers move from good intentions to real action. A large survey of Australian workers suggests that gap is exactly where many organisations are stuck. Meanwhile, governments are investing in support for high-risk industries, renaming NSW suicide prevention services so people can find them more easily, and debating new suicide prevention laws in the ACT.
At a glance
$12 billion a year: the estimated cost of workplace-driven mental ill-health to Australia's economy in 2025-26, projected to reach about $27.2 billion a year by 2041-42 (Mentally Healthy Workplaces Australia).
Intent is not becoming action: 58% of managers and leaders expect their organisation's mental health investment to stay the same next year, and 41% of workers say they sometimes work while struggling because they feel they cannot take time off (EML).
$6.9 million in new federal funding over two years for mental health and suicide prevention support for workers in high-risk industries such as construction.
Safe Havens are now NSW Mental Health Hubs: 24 free, peer-led services across NSW, with an extra $2.5 million to extend hours and add staff.
ACT Suicide Prevention Bill 2026 introduced on 28 October, proposing a territory-wide plan, a lived experience council and annual reporting.
The economic case for mentally healthy workplaces
For years, the argument for investing in workplace mental health has leaned on compassion and compliance. A new report puts a hard number on it. Australia's Economic Case for Mentally Healthy and Safe Workplaces, released by Mentally Healthy Workplaces Australia (MHWA), a national centre convened by Monash University and developed with Duncan Buckeridge Consulting, estimates that workplace-driven mental ill-health is costing the Australian economy about $12 billion a year in lost GDP. That is equivalent to $436 per person.
About 54% of that cost comes from lost productivity. The rest is split roughly evenly between costs to the health system, workers' compensation and insurance (about 23%), and informal care provided by families and friends (about 23%).
The trend is the real worry. According to the report, as reported by HRD Australia, serious mental health claims have grown by more than 10.6% a year since 2018-19, while all other serious workplace injury and illness claims grew by about 4% a year. Mental health's share of all working weeks lost to workplace injury and illness has risen from 21% in 2018-19 to an estimated 25.5% in 2025-26, and is projected to reach almost 40% by 2041-42. If nothing changes, the annual cost is projected to climb to about $27.2 billion by 2041-42 (in 2025-26 dollars), or $828 per person.
The report also models a better future. If the centre's goals are met, it estimates 291,000 fewer serious mental health claims and GDP cumulatively $28.3 billion higher by 2041-42. MHWA describes its projections as indicative of scale rather than a precise calculation, which is a fair caveat, but the direction is hard to ignore.
Professor Margo Lydon, MHWA's executive director and co-lead, described workplace mental ill-health as "a social and financial crisis" that is already imposing substantial and rapidly growing burdens, and warned that AI and automation are likely to intensify psychosocial pressures on workers.
Why it matters: Psychological injury is no longer a side issue in work health and safety. It is on track to become the single biggest driver of time lost from work. For employers, prevention is not only a legal duty under psychosocial hazard regulations; it is one of the clearest returns on investment available. Early recognition, supportive conversations and well-managed workloads cost far less than a long psychological injury claim.
Good intentions, slow action
If the economic case is so strong, why are so many workplaces stalling? A survey by workers' compensation and insurance services provider Employers Mutual Limited (EML), Inside the Minds of Australia's Workplaces 2026, offers some clues. As reported by HRD Australia on 29 October, the survey of 4,065 workers and 831 managers and leaders found:
58% of managers and leaders expect their organisation's investment in mental health to stay unchanged over the coming year.
Only 56% of managers and leaders agree that workloads in their organisation are sustainable in the long term, and one in five expect psychological injury claims to rise.
41% of workers said they sometimes worked while struggling with their mental health because they felt they could not take time off.
Around 45% of employees do not feel comfortable talking to their employer about a mental health condition.
22% of middle managers often or very often lose sleep because of work, compared with 14% of employees without management duties.
34% of employees have left a job because of its impact on their mental health.
EML's Daniel Walton put it plainly: workplaces are not holding back because they are "mean-spirited", but because of "paralysis" about how to tackle what seems like a complex problem. He pointed to autonomy and control over work as pivotal.
Why it matters: Two findings stand out. First, nearly half of workers do not feel safe raising their mental health at work, which means problems stay hidden until they become crises or claims. Second, middle managers are under real strain themselves, yet they are the people expected to notice when a colleague is struggling. Giving managers practical skills, and support of their own, is one of the most effective ways to break the paralysis. A starting point does not need to be complicated: a trained person who knows how to start a conversation and where to point someone for help.
New support for workers in high-risk industries
On 22 October, during National Safe Work Month, the Australian Government announced an additional $6.9 million over two years for mental health and suicide prevention support for workers in high-risk industries, starting with expanded peer support and suicide awareness programs in the NSW construction sector.
The government notes that men make up around 85% to 90% of the construction workforce, and estimates that the suicide rate among male construction workers is almost double that of other employed men. Assistant Minister for Mental Health and Suicide Prevention Emma McBride said many workers in construction, mining and manufacturing struggle in silence. The same announcement noted that Medicare Mental Health Centres have now delivered more than 570,000 free appointments.
Why it matters: Male-dominated, physically demanding industries carry some of the highest mental health risks and some of the strongest barriers to asking for help. Peer support works best when workers on site have the confidence and skills to notice changes in a mate and respond well. That capability can be built in any industry, not only construction, through accredited Standard Mental Health First Aid training.
NSW Safe Havens become NSW Mental Health Hubs
On 25 October, NSW Health announced that the services previously known as Towards Zero Suicides Safe Havens will be renamed NSW Mental Health Hubs. The change responds to feedback that people often struggle to find and understand the support options available to them.
There are 24 Hubs across NSW, including in North Ryde, Newcastle, Penrith and Parkes. They offer free, non-clinical support from trained peer workers with lived experience, for people experiencing suicidal distress or emotional crisis. The model of care is not changing. The NSW Government is investing an additional $2.5 million so Hubs can add staff, extend opening hours or improve facilities, and the suicide prevention response is backed by $40 million in annual funding. Updated branding will roll out statewide in early 2027.
Minister for Mental Health Rose Jackson said: "The name is changing, but what makes these services special isn't."
Why it matters: A clear, simple name matters when someone is in distress and needs to know where to go. If you live or work in NSW, it is worth knowing that a free, walk-in alternative to an emergency department exists for people in emotional crisis. Managers, HR teams and Mental Health First Aiders should add their nearest Hub to their local referral list.
A proposed Suicide Prevention Act for the ACT
In Canberra, Opposition Leader Mark Parton introduced the Suicide Prevention Bill 2026 into the ACT Legislative Assembly on 28 October. The private member's bill would require a territory-wide suicide prevention plan supported by plans from government directorates and agencies, including ACT Policing. It would also establish a Suicide Prevention Council including people with lived experience, families, carers and frontline workers, require annual reporting to the Assembly, and create a register of suspected and confirmed deaths by suicide with safeguards for sensitive information. Debate has been deferred.
"Suicide prevention cannot be left to good intentions alone," Mr Parton told the Assembly, while acknowledging that plans and reporting requirements are not sufficient on their own.
Why it matters: NSW already has its own suicide prevention legislation, and a growing number of jurisdictions are moving to make suicide prevention a shared, accountable responsibility across government rather than a health portfolio issue alone. For organisations, the message is the same: suicide is preventable, and everyone, including workplaces, has a role. For context on the latest national data, see our article on ABS suicide data and what it means for Australian workplaces.
What it means for you
For individuals and families: If work is affecting your mental health, you are far from alone, and you do not need to wait until things reach breaking point. Talk to someone you trust, see your GP, or reach out to a support service. In NSW, the NSW Mental Health Hubs offer free peer support without an appointment. Learning how to support someone else is also a powerful step; our community Mental Health First Aid courses are open to everyone.
For managers: You do not need to be a counsellor to make a difference. Notice changes in your team, check in privately, listen without judgement, and know where to refer. Look after yourself too: the EML survey shows managers are carrying real strain. Accredited workplace Mental Health First Aid training gives managers a practical, evidence-based framework for these conversations.
For organisations: The economic case is now clear, and so are the legal duties. Under work health and safety laws across Australia, employers must identify and manage psychosocial hazards such as high job demands, low job control, poor support and bullying. Move from intention to action by:
Assessing psychosocial risks and acting on what you find, with help from our psychosocial hazards consultancy.
Training a network of accredited Mental Health First Aiders across all levels and sites, not just HR. See our full range of educational courses.
Making it safe to speak up, and reviewing workloads and job control, which both EML and MHWA highlight as key drivers.
Offering access to professional support, including counselling, and making sure staff know where to find it.
How Focused Mental Education can help
Focused Mental Education delivers accredited Mental Health First Aid training, psychosocial hazards consultancy, counselling and NDIS psychosocial supports Australia-wide. Whether you want to train your managers, assess psychosocial risk across your workplace or build a peer support network, we can tailor a program to your organisation. Call us on (02) 8044 3365, email info@fme.com.au or visit fme.com.au to get started. You can also find more articles in our Knowledge Hub.
Need support now?
If you or someone you know needs support, contact Lifeline on 13 11 14, the Suicide Call Back Service on 1300 659 467, Beyond Blue on 1300 22 4636 or 13YARN on 13 92 76 (for Aboriginal and Torres Strait Islander people). In an emergency, call 000.
Sources
HRD Australia, "Mentally unhealthy workplaces costing Australia $12 billion a year", 21 October 2026. View source
Mentally Healthy Workplaces Australia, "Australia's Economic Case for Mentally Healthy and Safe Workplaces", 2026. View source
HRD Australia, "'Meaningful action' from employers on mental health still lagging, report finds", 29 October 2026. View source
EML, "Inside the Minds of Australia's Workplaces 2026", October 2026. View source
HRD Australia, "Mental health support for high-risk workers gets $6.9m federal boost", 26 October 2026 (announcement 22 October 2026). View source
NSW Health, "NSW Mental Health Hubs: easier to find, open longer", 25 October 2026. View source
Region Canberra, "Suicide prevention cannot be left to good intentions: Liberals introduce new ACT bill", 31 October 2026. View source
ACT Legislation Register, Suicide Prevention Bill 2026, presented 28 October 2026. View source
