Safe Work Australia’s Psychological Health and Safety in the Workplace report provides insights into the growing prevalence of mental health conditions at work and the need to be proactive in managing psychosocial hazards at work.

Together, these factors accounted for more than 52% of all serious work-related mental health claims.

Some industries are at higher risk of serious psychological injury claims

Health care and social assistance had the highest number of claims, while public administration and safety recorded the biggest percentage increase in claims. Education and training saw a high number of claims, aligning with increasing reports of burnout and workplace stress.

Women face a disproportionate risk

Women accounted for 57.8% of all serious mental health claims between 2017-22, likely due to overrepresentation in high-stress sectors (e.g., health care, education) and higher exposure to workplace bullying, harassment, and violence.

Mental health claims lead to longer recovery times

Workers suffering from psychological injuries take significantly more time off work than those with physical injuries:

• Median time lost: 34.2 working weeks (compared to 8.0 weeks for physical injuries).
• Median compensation paid: $58,615 per claim (more than three times the compensation for physical injuries).

Poor return-to-work outcomes for mental health claims

Workers with mental health conditions face significant challenges returning to work. The return-to-work rate for all claims was 91.6%  while psychological injury claims was 79.1%,  Additionally, these workers were more likely to report feeling stigmatised by employers and colleagues, believing their employer discouraged them from making a claim and experienced a stressful and difficult return-to-work process.

How can workplaces reduce psychosocial hazards?

With health and safety laws treating psychosocial risks the same as physical hazards, employers must proactively prevent workplace mental health injuries.

Steps for employers:

• Proactively identify and assess workplace psychosocial hazards (e.g., excessive workloads, bullying, or lack of job clarity).
• Implement effective controls, such as developing a positive workplace culture, providing mental health support, and offering resilience training.
• Encourage early reporting of psychosocial hazards and adopt a zero-tolerance policy for workplace bullying and harassment.
• Train leaders and managers to recognise signs of workplace stress and take action.
• Support injured workers in their recovery for a smooth return-to-work process.

This report is a wake-up call for Australian businesses.

Failing to manage psychosocial hazards not only harms workers but also increases absenteeism and presenteeism, lowers productivity, raises workers’ compensation costs and puts employers at legal risk.

The key to preventing mental health risks and ensuring a safe, productive workforce is proactive leadership and workplace training. Together we can turn those statistics around.

Note: Changes are coming for Victoria: Psychosocial hazard regulations Victoria are coming in to force on Dec 1 2025 – here’s what employers need to know >>