Australia’s Mental Health System: Progress in Patches But Pressure Everywhere

Australia’s Mental Health System: Progress in Patches But Pressure Everywhere

Australia’s mental health system remains under sustained pressure, with many key indicators stalled or trending in the wrong direction. The recently-released National Mental Health Commission’s 2024 Report Card shows a picture of persistent need, patchy progress, and areas where reform has yet to deliver meaningful change.

The prevalence of mental disorders remains high, with 21.5% of adults meeting diagnostic criteria in the past year. The situation is most acute among young people, with almost 39% of Australians aged 16–24 experiencing a mental disorder in the same period. While psychological distress levels and life satisfaction scores have remained relatively steady, there has been a slight but noticeable decline in Australians’ sense of control over their lives since 2019.

Financial stress continues to be a significant driver of distress. More than one-third of adults report difficulty coping on their current income, and one in five have delayed or avoided seeking mental health care due to cost—an upward trend that has persisted since 2020. These financial pressures intersect with other social risks. Loneliness and discrimination have shown no measurable improvement over recent years. People living with a mental health condition remain disproportionately likely to experience unemployment, housing insecurity, and financial hardship.

The report does highlight areas of genuine progress. Rates of seclusion and restraint in hospital mental health units continue to fall, particularly for children and adolescents. More people with mental health conditions are accessing treatment than in 2007, with treatment rates rising from 35% to 45% over the past 15 years. Employment participation among those with mental health conditions has also improved, narrowing the gap with the general population.

Yet these gains are uneven. Access remains limited in regional and remote communities, where services are harder to reach and continuity of care is inconsistent. The gap is also evident for disadvantaged populations, who continue to experience higher rates of mental illness and greater barriers to timely treatment. Post-hospital follow-up has improved in metropolitan areas, but has fallen in remote settings—illustrating how progress in some parts of the system masks stagnation or decline in others.

A consistent theme in the Report Card is the need for better data. Large areas of the mental health system—particularly non-government services, private providers, and psychosocial supports—remain outside comprehensive national reporting. This limits visibility of service gaps, unmet need, and outcomes over time. The Commission is calling for an expanded national reporting framework, alongside targeted workforce strategies and better integration of services, to help bridge the gap between demand and delivery.

While the 2024 Report Card highlights some areas of progress, the system remains under strain. For young people, those under financial stress, and Australians outside major cities, mental health care continues to be uneven. Closing that gap will require sustained investment, better coordination, and a system designed to deliver timely, affordable, and accessible support for everyone who needs it.