How to support mental health in the workplace

Mental health is a vital part of every Australian workplace. Poor mental health costs Australian businesses up to $39 billion each year in lost productivity and participation. Yet, the benefits of mentally healthy workplaces, including improved safety, wellbeing, and productivity, are often misunderstood or overlooked as businesses focus on short-term priorities.

Read more about the benefits of a mentally health workplace at Black Dog Institute.

The real impact: Mental health and Australian workplaces

The scale of mental health challenges in Australian workplaces is growing. According to Safe Work Australia, mental health conditions accounted for 12.0% of all serious workers’ compensation claims in 2023–24, representing 17,600 serious claims. This is an increase of 2,300 claims, or 14.7%, in just one year.

According to 2025 Safe Work Australia statistics, serious claims for mental health conditions have experienced the largest increase of any injury group, up by 10,900 claims, or 161.1%. Mental health conditions are also among the costliest workplace injuries, leading to significantly more time off work and higher compensation compared to other injuries and diseases.

• Median time lost: In 2022–23, the median time lost for serious mental health condition claims was 35.7 working weeks, almost five times the median time lost across all serious claims (7.4 weeks).
• Median compensation paid: The median compensation paid for serious mental health condition claims in 2022–23 was $67,400, more than four times the median compensation paid across all serious claims ($16,300).

Read more about mental health statistics at Safe Work Australia.

Legal obligations for employers

Australian employers have a duty under WHS laws to manage risks to psychological health, just as they do for physical health. The Safe Work Australia mental health resources provide practical guidance on identifying and managing psychosocial hazards.

Key steps include:

• Identifying psychosocial hazards, such as bullying, high job demands, or poor support
• Assessing and controlling risks
• Consulting with employees
• Reviewing control measures regularly

For more details, see the Safe Work Australia mental health resources.

Top strategies for managers

Drawing on SuperFriend’s latest research, here are practical strategies for managers:

• Lead by example, model healthy behaviours and work-life balance
• Check in regularly, ask team members how they are going, not just about work
• Provide flexibility, where possible, offer flexible work arrangements
• Encourage peer support, foster a culture where colleagues look out for each other
• Promote available resources, make sure everyone knows about Employee Assistance Programmes (EAPs) and external support

Read more about the strategies at SuperFriend.

Creating a mentally healthy workplace

1. Promote awareness and reduce stigma

• Educate employees and leaders about mental health and its importance
• Encourage open conversations and normalise seeking help

2. Prevent psychological hazards

• Develop clear policies on bullying, harassment, and workplace behaviour
• Provide training for leaders to recognise and address psychosocial risks
• Foster positive workplace relationships and support networks

3. Early intervention

• Train employees and leaders to recognise early signs of distress
• Encourage early reporting and provide access to support services
• Use tools and resources from SuperFriend to guide interventions

4. Support recovery and return to work

• Develop return-to-work programmes that include mental health support
• Maintain regular contact with employees on leave
• Adjust workloads and expectations as needed to support recovery

Workers’ compensation and mental health

Mental health conditions are now a significant part of workers’ compensation claims. These claims are more likely to result in longer time off work and higher costs for employers. Early intervention and support can help reduce the impact on both employees and businesses.

For information on support services, visit Fair Work Australia.

Consider Workers Compensation with GIO

GIO’s Workers Compensation Insurance is available for businesses in WA, NT, ACT, and TAS. You’ll also receive support services for your business, including risk management and training courses. For more information, please get in touch.

Learn more about Workers Compensation Insurance

Read more:

• Why do I need Workers Compensation Insurance?
• Employee or contractor? Understanding the difference
• Is insurance tax deductible?

Insurance issued by AAI Limited ABN 48 005 297 807 trading as GIO. In NSW, GIO manages claims as agent for the Workers Compensation Nominal Insurer ABN 83 564 379 108, also known as icare workers insurance.