The Australian evidence for employers, leaders and decision-makers in 2026
Workplace wellbeing has sometimes been treated as an optional extra. A morning tea, a motivational speaker or a wellbeing week might create a useful conversation, but these activities alone do not create a mentally healthy workplace.
The Australian evidence increasingly shows that mental health, psychosocial safety and workplace design have direct consequences for productivity, retention, workers’ compensation, staff performance and leadership accountability.
In other words, workplace wellbeing is no longer simply a “people and culture” initiative. It is a business, leadership and workplace safety issue.
“An EAP can support a healthy workplace, but it cannot repair an unhealthy work system on its own.”
$2.30 returned for every $1 invested in a mentally healthy workplace.
The scale of mental ill-health in Australia
The latest nationally available Australian data provides important context for employers.
Between 2020 and 2022, 42.9 per cent of Australians aged 16 to 85 had experienced a mental disorder at some point in their lives. More than one in five, or 21.5 per cent, experienced a mental disorder within the previous 12 months, with anxiety disorders the most common at 17.2 per cent.
Mental health conditions and substance use disorders were also responsible for approximately 15 per cent of Australia’s total disease burden in 2024. Anxiety disorders alone accounted for 3.9 per cent of the nation’s disease burden.
These figures are not limited to what happens outside the workplace. Mental ill-health can influence attendance, concentration, communication, decision-making, workplace relationships, safety and a person’s overall capacity to perform their role.
The Productivity Commission estimates that mental ill-health and suicide cost Australia between $200 billion and $220 billion each year. Comcare also reports that poor mental health costs Australian businesses approximately $11 billion annually.
However, the evidence is not only about cost. Comcare cites an average return of $2.30 for every $1 invested in creating a mentally healthy workplace.
The workplace impact is measurable
Mental health-related workers’ compensation claims are becoming more frequent and costly.
Safe Work Australia’s provisional 2023 to 2024 data recorded approximately 17,600 serious claims involving mental health conditions.
These represented 12 per cent of all serious workers’ compensation claims.
Mental health-related claims also tend to involve considerably more time away from work and higher compensation costs than the average serious claim.
The median time lost for a mental health-related claim was 35.7 working weeks, while median compensation reached approximately $67,400.
The number of serious mental health claims increased by 14.7 per cent in one year and by more than 161 per cent across the decade.
Claims data also tells only part of the story. The National Mental Health Commission’s baseline workplace report found that 28 per cent of employees experienced moderate to severe mental ill-health, while 28 per cent reported presenteeism (the act of coming to work while physically, mentally, or psychologically unwell).
Presenteeism occurs when someone attends work but is unable to function at their usual capacity. They may be physically present, but fatigue, stress, anxiety, low mood or other challenges can reduce concentration, productivity and decision-making.
Unlike absenteeism, presenteeism can be harder for organisations to recognise. It can quietly affect performance long before someone takes leave or makes a workers’ compensation claim.
Why wellbeing cannot be optional
Work can support purpose, connection and stability, but poorly managed workloads, unclear roles, inadequate support, harmful behaviour and organisational change can also affect mental health.
A strong workplace wellbeing strategy should protect, respond and promote.
Protect
Identify and manage psychosocial hazards before they cause harm. This includes reviewing workloads, improving role clarity, addressing harmful behaviour and providing appropriate support and resources.
Respond
Leaders should know how to recognise distress, respond appropriately and connect employees with professional support. Employees also need safe, confidential pathways to seek help without fear of judgement or negative consequences.
Promote
Healthy workplaces support purpose, belonging, recognition, flexibility, growth and fair organisational systems. The goal is not forced positivity, but conditions that help people perform sustainably.
Where an EAP fits
An EAP provides confidential, independent support for personal and work-related concerns, including stress, anxiety, grief, relationship difficulties, workplace conflict and burnout.
It can support early intervention, but an EAP alone does not remove an employer’s responsibility to manage psychosocial risks.
Put simply, a counselling service cannot repair an unhealthy work system on its own. EAP works best alongside realistic workloads, capable leadership, clear policies and a genuine commitment to psychological safety.
From wellbeing activities to wellbeing strategy
Organisations can begin by asking:
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Are psychosocial hazards identified and reviewed?
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Can employees raise concerns safely?
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Are workloads realistic and responsibilities clear?
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Do leaders know how to respond to distress?
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Do employees understand how to access support?
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Are wellbeing initiatives connected to workplace systems and leadership behaviour?
These questions help move wellbeing beyond isolated activities and towards a consistent, preventative approach.
The business case
Investing in workplace wellbeing can reduce preventable harm, improve retention, strengthen leadership and support sustainable performance.
The most effective strategies combine prevention, early intervention and access to professional support.
How UrSpace EAP can help
UrSpace EAP, operated by Watkins Therapy Group, supports Australian workplaces through confidential counselling, practical workplace wellbeing resources, leadership support and Mental Health First Aid training.
We work with organisations to provide employees with timely access to professional support while also helping leaders build confidence in recognising concerns, responding appropriately and connecting people with the right assistance.
Our approach is practical, flexible and designed to complement your organisation’s broader wellbeing, psychosocial risk and workplace health and safety strategies. Rather than offering a stand-alone service, we aim to work alongside your existing systems, policies and culture to strengthen early intervention, employee support and leadership capability.
UrSpace EAP can support organisations with confidential employee counselling, de-identified utilisation reporting, workplace resources, leader guidance and training tailored to the needs of the workplace.
You can contact us to learn more about our EAP service by calling us on 1800 270 954 or email.
