Rise in Mental Health Claims Marks Fastest Growth in Australian Workplace Injuries

In the 2023–24 period, Australia recorded 146,700 serious workers' compensation claims, averaging more than 400 per day, with mental health claims comprising 12% of the total. Workers injured psychologically tend to be absent from work for longer periods compared to those with physical injuries, affecting workforce planning, team dynamics, and insurance costs.

These findings come as National Safe Work Month and Mental Health Awareness Month begin on October 1. AIHS Chair Celia Antonovsky urges employers and workplace health and safety (WHS) professionals to prioritize psychological safety alongside physical safety.

The AIHS has identified harassment and bullying, excessive workloads, and exposure to violence as the most common psychosocial hazards in the workplace. These issues arise from work design and management practices and are considered a formal responsibility for employers under Australian WHS legislation.

Antonovsky emphasized the importance of early intervention: "Knowing what negatively impacts workers and acting before it causes lasting harm is key. A safe workplace is one where employees feel supported and can speak up when something isn't right."

Previously seen as secondary to physical risks, psychosocial hazards are now a primary concern, as reflected in Victoria's Occupational Health and Safety (Psychological Health) Regulations 2025, which require formal identification and control measures from employers. Similar mandates exist in other Australian states and territories.

Dr. Laura Kirby, chief psychologist at Australian Psychological Services (APS), highlighted that job design significantly affects employee wellbeing. She stated, "Excessive workloads, bullying, or poor management can lead to severe consequences when they are allowed to accumulate."

To address the rise in mental health claims, the AIHS recommends a proactive approach for HR leaders, including:

- Designing jobs with sustainable workloads and clear expectations.

- Establishing formal channels for employees to express concerns without fear.

- Responding promptly to early signs of distress.

- Involving health professionals in recovery plans for employees with psychological injuries.

- Conducting regular psychosocial risk assessments.

- Normalizing discussions about psychological safety throughout the year.

Organizations that support employee mental health as a strategic investment rather than merely a compliance necessity are more likely to succeed. With evolving obligations concerning psychological injury, HR leaders need to understand their exposure to avoid potential risks.

Antonovsky noted, "The workplace's environment impacts mental health significantly. Employers must recognize risks and take preventive measures against psychological injuries." Those who prioritize psychological safety will likely reduce harm, decrease absenteeism, and improve employee retention. The implications of inaction are evident in rising mental health claims and increased absence rates.