New Report Highlights Mental Health Struggles in Australia
The Mental Health Insights Report 2026 reveals that significant numbers of workers are struggling with mental health in the workplace.
Updated on Oct. 29, 2026 in Mental Health
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Would you feel comfortable disclosing mental health concerns to your employer to access compensation benefits?
The Mental Health Insights Report 2026 finds that two in five Australian workers took mental health leave in the past year. Forty-one percent of employees continue to work while struggling because they feel they cannot take time off.
Why it matters
The report highlights a growing workplace crisis, as 34% of workers have left jobs due to mental health impacts and serious compensation claims have surged. These findings underscore the widespread pressure on employees and the potential for long-term workforce instability.
The Mental Health Insights Report 2026 surveyed 4,065 workers and 831 managers across the country. Data indicates that 38% of total workers' compensation costs in New South Wales are now attributed to psychological claims.
The players
EML
EML is an insurance and claims management organisation that published the Mental Health Insights Report 2026.
Monash University
Monash University is a public research university that provided the analysis of four national datasets for this study.
The details
Research conducted via Monash University shows that 46% of workers would accept a pay cut for a role better suited to their mental health. Despite these challenges, only 20% of organisations expect to increase mental health investment in the coming year.
Timeline
1 July 2026: New South Wales tightened eligibility for psychological compensation claims.
2026: Release of the Mental Health Insights Report.
Next year: Organisations plan mental health investment levels.
Health Landscape
This report follows the 1 July 2026 New South Wales tightening of eligibility for psychological compensation claims, reflecting a broader effort to manage the rising financial burden of mental health conditions. It marks a shift as the system attempts to balance support with sustainable claim costs.
Workers feeling unable to take time off may face exacerbated health issues and long-term burnout. Those struggling with mental health may need to navigate new, stricter criteria for compensation claims established in New South Wales.
The takeaway
Employees should be aware that workplaces are facing significant pressure to improve mental health support amid rising claims. Prioritising open communication with employers about mental health leave needs remains a critical step for individual wellbeing.
Further reading
For broader trends regarding employee wellness, visit the Mental Health section.
Source note: This article includes information reported by Insurance Business.
Live Poll
Would you feel comfortable disclosing mental health concerns to your employer to access compensation benefits?
