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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OHS subtext in Industrial Manslaughter discussions

Senator Deborah O’Neill continued her attack on Australia’s Liberal/National party government in Senate Estimates hearing last week.

With the Work Health and Safety (WHS) ministers split on the introduction of an Industrial Manslaughter (IM) offence in the Model WHS laws, Senator Michaelia Cash, Attorney-General, Minister for Industrial Relations and chair of that WHS meeting, could have voted in favour of these IM changes but declined. O’Neill saw this as a political weakness and challenged Senator Cash to justify her decision. The justifications, with a hint of arse-covering, were morally weak but legally sufficient. At one point, Senator Cash said:

“… a fundamental principle of work health and safety regulation in Australia, as you would be aware, is that liability should focus on risk, not outcome, because the evidence shows that when you focus on risk, as opposed to outcome—and the outcome that you are referring to here is a terrible outcome: a death in a workplace—it’s been proven to actually improve health and safety in workplaces.”

Hansard, June 2, 2021, page 8
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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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Industrial Manslaughter or Category 1. Which prevents harm more effectively?

The Communique issued after the May 20, 2021 meeting of the Work Health and Safety (WHS) Ministers says that Australia is not likely to apply an Industrial Manslaughter law nationally:

“While the Northern Territory, Queensland, Western Australia, the Australian Capital Territory and Victoria provided their support for an industrial manslaughter offence, the recommendation did not receive the required majority.”

Some people think that this is no real failure as the Communique also includes “defacto ‘industrial manslaughter’ laws”. Here is the quote that supports that position:

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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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