New data reveals psychological injuries are rising faster than any other workplace condition, with mental health claims up 161% over the past decade
Australia's mental health claims are rising faster than any other workplace injury category, according to the Australian Institute of Health and Safety (AIHS). Claims have risen 161% over the past decade, marking the largest increase recorded across all major injury and disease groups.
Of 146,700 serious workers' compensation claims recorded in 2023–24 – more than 400 per day – mental health claims accounted for 12%. Employees with a psychological injury spend significantly more time away from work than those with physical ones. That gap has an impact on workforce planning, team capacity, and insurance costs.
The release of the findings coincides with the start of National Safe Work Month and Mental Health Awareness Month on 1 October. AIHS Chair Celia Antonovsky is calling on employers and WHS professionals to give psychological safety equal weight to physical safety.
What are the most common psychosocial hazards at work?
The AIHS identifies harassment and bullying, excessive workloads, and exposure to violence or aggression as the most prevalent psychosocial hazards. These stem from how work is designed and managed, not from individual circumstances. That distinction makes them a formal employer responsibility under Australian WHS legislation.
Antonovsky said acting early is essential. "The key is knowing what is negatively impacting workers and acting before it causes lasting harm. A safe workplace is one where people are able to speak up, feel supported and trust that something will be done when something isn't right," she said.
Psychosocial hazards were once treated as secondary to physical risks; that has changed. Victoria's Occupational Health and Safety (Psychological Health) Regulations 2025 now require employers to formally identify and control these hazards. Similar obligations apply across other states and territories.
Dr Laura Kirby, chief psychologist at the Australian Psychological Services (APS), said job design is central to the problem. "The way we design jobs, lead teams, and shape workplace culture has a direct impact on people's wellbeing. When factors like excessive workloads, bullying or poor management are allowed to build up, they can have serious consequences," she said.
How can HR leaders reduce mental health claims in the workplace?
The AIHS recommends a proactive rather than reactive approach. For HR leaders reviewing their psychological safety frameworks, the following steps provide a practical starting point:
- Design roles with sustainable workloads and clear expectations
- Create formal channels for employees to raise concerns without fear of consequences
- Act promptly on early signs of distress — from individuals and across whole teams
- Involve treating health professionals in recovery plans for employees returning from psychological injury
- Conduct regular psychosocial risk assessments, not only following incidents
- Normalise conversations about psychological safety throughout the year, not just during awareness campaigns
Organisations working to build cultures that genuinely support employee mental health and wellbeing are treating this as a strategic investment rather than a compliance requirement. And as workers' compensation obligations for psychological injury continue to evolve across Australia, HR leaders who are unclear on their exposure risk finding out the hard way.
"Where we work, what we do, and who we work with can have a huge impact on our mental health,” Antonovsky said. “Employers need to understand where these factors can become risks and take action to prevent psychological injury."
HR leaders who treat psychological safety as an ongoing operational commitment are better placed to reduce harm, cut absenteeism, and retain people. The risk of inaction is no longer abstract; it shows up in mental health claims data, absence records, and attrition rates.
