Business should stop complaining about paying for mental health. It’ll boost the bottom line.

[Article reprinted, with permission, from the May 24 edition of Crikey newsletter]

Luke Slawomirski

During the 2020 lockdowns, the business lobby showed a surprising concern for Victorians’ mental health: lockdowns were bad because they’d cause a spike in mental illness and suicides far worse than the COVID-19 cases and deaths they’d prevent.

The suicide spike never happened. What did happen was much-needed additional funding for mental health — $3.8 billion over four years — announced in the 2021-22 state budget on Thursday.

But the way business reacted suggests its interest in mental health has waned.

You see, the measures aimed at better prevention, diagnosis and treatment of mental ill health will be funded by a levy: 0.5% for businesses with payrolls above $10 million and 1% for those above $100 million. Critics, including the federal treasurer, claim this will cruel “job creation and confidence“.

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Latest Psych Health Code released

The big occupational health and safety (OHS) news in Australia has been the New South Wales release of its Code of Practice for Managing Psychological Hazards at Work. This Code is not mandatory but is a very good indication of what the OHS regulators (and perhaps eventually the Courts) believe are reasonably practicable measures for employers and business owners to take. These measures are discussed in detail below.

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Australia gets serious on psychological health at work

Below is an article written by Carlo Caponecchia and published originally on May 25 2021. Caponecchia is a leading figure in workplace psychological hazards and strategies. The article is reproduced with permission.


Employers are about to ramp up their efforts to protect mental health at work.

Last week, workplace health and safety (WHS) ministers from around Australia agreed to changes that will formalise what’s expected of employers in relation to mental health in Regulation. 

These changes respond to a review of the model WHS laws by Marie Boland, former Executive director at Safework South Australia. The model WHS laws are a “blueprint” used since 2011 to make safety laws more consistent across the States and Territories. 

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Stepping forward a bit, maybe

Last week the Australian Council of Trade Unions (ACTU) issued a media release describing the meeting of Work Health and Safety Ministers presenting a

“… huge step forward on mental health…”

The “step” is more walking on the spot than a step forward as the obligation to address psychological hazards in the workplace has existed in Australia for decades. It has just been ignored.

However, what caught my attention was this statement:

“Up to 45 per cent of mental health issues are attributable to work…..”

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Psychological harm gets new regulations and funding access

The State of Victoria had a big week on mental health, with the Labor Government allocating billions of dollars to the improvement of the mental health of its citizens. Much of the justification for the spend (and the imposition of a mental health levy on large companies) is in response to the recent Royal Commission into Mental Health Systems. Workplace health and safety was on the agenda in that Royal Commission. Hence, it is worth looking at how, or if, this recent Budget helps employers improve the psychological health of their workers in anticipation of new regulations on this hazard promised by Victoria’s Minister for Workplace Safety, Ingrid Stitt.

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Non-military safety lessons from the latest Royal Commission (open access)

The Australian Broadcasting Corporation broadcast an episode of The Signal on April 21, 2021, which discussed the complexity of the culture of Australia’s military, and I strongly recommend you listen to it. It does make some points about culture worth contemplating in the context of one’s own workplace and profession.

The most useful point was that an established institution cannot have a uniform culture that meets the expectations of all relevant stakeholders. Generations take their culture with them. So those who started in the military in the 1980s and 1990s (and later) will bring the values and lessons of that time into their maturity and when they move into senior and leadership positions – positions that are intended to both preserve and progress the organisation’s culture. This will result in conflict between the expectations of new recruits and the realities of the established military executives. Not open revolt, but a dissatisfaction that may or may not result in leaving the organisation.

The topic used by The Signal to illustrate the extremes of the defence force members and stakeholders was mental health.

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International perspective on bullying and harassment

In April 2021 the International Association on Workplace Bullying and Harassment conducted its 2002 conference online. The conference was enlightening for its inclusivity.

Many Western countries categorise work-related mental health as if they have minimal overlap. Workplace bullying is often seen as its own discipline with its own guidances, analyses and supporting industries. This can be convenient and has evolved from a reactive and often shallow response from Government.

This structure was acknowledged at the conference but many of the presentations ignored it and spoke about worker health, safety and welfare in the broadest terms.

The conference also balanced detailed local research with broad global contexts. This is the first of a series of articles based on presentations at the conference

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