A new national centre to drive evidence-based solutions to improve workplace psychological health and safety is being supported by a $5.4 million investment by the Minns Labor Government.
Mentally Healthy Workplaces Australia (MHWA) is being established by Monash University as a new national centre focused on innovation and research aimed at improving return-to-work outcomes and strengthening psychological safety standards.
The funding is part of the Government's commitment to preventing workplace injuries and protecting workers from psychological harm, including through a wider $344 million Workplace Mental Health package.
The centre will act as a hub for codesigning strategies that create safer, healthier, and more productive workplaces, backed by evidence-based innovation and research across government, industry and academia.
The NSW Government joins Monash University and more than 40 establishment partners with $58 million in-principal commitments and a target of more than $180 million in cash and in-kind contributions over seven years.
The MHWA centre will:
- Co-create a national strategy to keep Australia at the forefront of workplace mental health and wellbeing
- Enable co-design and co-creation with diverse stakeholders across disciplines and industries
- Deliver real-world solutions through collaborative research and development
- Implement evidence-based programs that improve psychological health, safety and wellbeing and enhance productivity in workplaces.
According to the NSW Psychological Health and Safety Strategy 2024-2026, the cost of psychologically unsafe workplaces is estimated at $2.8 billion annually, with a 30 per cent increase in mental health compensation claims between 2018-19 and 2022-23.
MHWA's financial model anticipates significant benefits, including a reduction of more than 5.5 million days of absenteeism due to mental ill health, and a decrease in average duration of leave from 27 weeks to 23 weeks for mental health claims.
The joint initiative also responds to the Standing Committee on Law and Justice's 2023 Review of the NSW Workers Compensation Scheme, which recommended greater collaboration among the agencies' research functions.
Minister for Industrial Relation Sophie Cotsis said:
"This national centre will enable the kind of innovation and evidence-based practice needed to ensure safe workplaces are a fundamental right, not a privilege."
"Supporting this important collaboration is just part of the work the NSW Government is doing to improve psychological safety at work and is complemented by $344 million in new funding for a Workplace Mental Health package.
Minister for Customer Service and Digital Government Jihad Dib said:
"Mentally healthy workplaces are not just better for individuals-they are better for communities, businesses, and for the economy."
"We know workers compensation claims for psychological injury at work have increased significantly over recent years and these workers are away from the workforce for longer."
"This investment reflects our strong commitment to better understanding mental health within a workplace and making safety a priority."
SIRA Chief Executive Mandy Young said:
"SIRA is proud to work with icare and SafeWork on behalf of NSW Government, to partner in the establishment of this centre."
"By supporting MHWA and drawing from the best minds in research, we are building the foundations for better workplace outcomes."
