Mental health claims are rising across Australia, placing greater pressure on employers, insurers, and workplaces. As awareness grows and psychosocial risks become more widely recognised, organisations are seeing more workers report stress, burnout, bullying, and other psychological injuries. Understanding why mental health claims are increasing and what employers can do about them is essential for maintaining a safe, compliant, and productive workplace.
Why Mental Health Claims Are Increasing
Several factors are contributing to the rise in mental health?related workers compensation claims:
Greater Awareness and Reduced Stigma
Employees are more willing to speak up about mental health concerns. This shift is positive, but it also means organisations must be prepared to respond appropriately.
Increased Psychosocial Risks
Workload pressures, organisational change, poor communication, remote work challenges, and interpersonal conflict can all contribute to psychological harm if not managed effectively.
Legislative and Regulatory Changes
Stricter WHS requirements now mandate that employers identify, assess, and control psychosocial hazards. Regulators are placing greater emphasis on mental health, leading to more scrutiny and higher expectations.
Changing Work Environments
Hybrid work, economic uncertainty, and rapid technological change have increased stress levels for many workers. These pressures can escalate into psychological injury if not addressed early.
The Impact on Businesses
Rising mental health claims can have significant consequences for organisations, including:
- Higher workers compensation premiums
- Increased absenteeism and presenteeism
- Reduced productivity and morale
- Greater turnover and recruitment challenges
- Legal and compliance risks
Proactive management is essential to reduce these impacts and support a healthier workforce.
How Employers Can Reduce Mental Health Risks
1. Identify and Manage Psychosocial Hazards
Common hazards include excessive workload, poor role clarity, conflict, bullying, and lack of support. Conducting regular risk assessments helps organisations understand and control these risks.
2. Strengthen Leadership Capability
Leaders play a critical role in shaping workplace culture. Training managers to recognise early warning signs, communicate effectively, and support their teams can significantly reduce psychological harm.
3. Promote Early Intervention
Addressing issues early—before they escalate—reduces the likelihood of claims. Encouraging open conversations and providing access to support services can make a meaningful difference.
4. Implement Clear Policies and Processes
Well?defined procedures for performance management, conflict resolution, and reporting concerns help ensure issues are handled fairly and consistently.
5. Foster a Supportive Culture
Regular check?ins, flexible work options, and genuine care for employee wellbeing contribute to a safer, more resilient workplace.
How ABILITY GROUP Supports Organisations
ABILITY GROUP partners with businesses to reduce psychosocial risks and strengthen workplace health and safety. Our team provides:
- Psychosocial risk assessments and WHS compliance reviews
- Support managing complex mental health?related claims
- Leadership coaching and training
- Policy development and process improvement
- Guidance on early intervention and return?to?work strategies
- Practical advice tailored to your industry and workforce
We help organisations build safer, healthier, and more productive workplaces by addressing the root causes of mental health risks.
Creating a Mentally Healthy Workplace
The rise in mental health claims highlights the need for proactive, structured, and compassionate approaches to workplace wellbeing. By understanding the drivers of psychological injury and implementing effective controls, employers can protect their people and reduce business risk.
If your organisation needs support managing mental health claims or improving WHS practices, ABILITY GROUP is here to help.
Source: Ceda (Committee for Economic Development of Australia)
Title: Workplace face escalating mental health claims without action
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