New mental health research puts economic case behind psychosocial supports
New research shows psychosocial mental health supports deliver strong value and significant cost savings, but Australia has barely scratched the surface of measuring their true economic worth.
Community Mental Health Australia (CMHA) engaged the Centre for Social Impact at the University of Western Australia (CSI UWA) to examine the economic evidence behind psychosocial support, the non-clinical, community-based programs that help people experiencing mental distress build the housing, employment, relationships and daily living experiences that make up a full life. The resulting report, Capturing the Economic Value of Psychosocial Support , will be explored in depth at a free public webinar on Tuesday 7 July 2026.
The research highlights the substantial economic burden of mental distress on the Australian economy, and points to strong results where psychosocial programs have been rigorously evaluated, including significant reductions in hospital and emergency presentations, and meaningful gains in people's quality of life.
CSI UWA Director Professor Paul Flatau said the findings reinforced what the sector has long argued: that psychosocial support is good value, and worth backing.
"Where economic evaluations of psychosocial support programs have been undertaken, the results are strong," Professor Flatau said.
"We're seeing genuine improvements in people's quality of life alongside real cost offsets, programs that return people to the workforce, or divert them away from expensive hospital and clinical care,” he added.
"The opportunity now is to build on this evidence. With only a handful of Australia's psychosocial programs fully evaluated so far, there is enormous scope to strengthen the case even further, and to give funders and policymakers the confidence to invest with certainty," said Professor Flatau.
The research also points to considerable unmet need for psychosocial support nationally, and notes that spending on psychosocial support remains a small fraction of overall mental health expenditure, with clinical services continuing to dominate the system.
CMHA CEO Kerry Hawkins said the research gave the sector a stronger economic language to sit alongside what its members see every day.
"Our members see the difference psychosocial support makes in people's lives every day, helping people stay housed, stay connected, stay employed and live full lives outside of hospital," Ms Hawkins said.
"This research shows that where we've been able to measure it properly, that difference translates into real, quantifiable savings for government,” she commented.
"Commissioning this work was about giving government and funders the confidence to invest further in community-based, psychosocial support. The evidence is genuinely promising, our job now is to build on it, with longer funding cycles and stronger evaluation, so we can capture the full picture of the human and economic value this sector delivers," added Ms Hawkins.
