NSW's $5.6M workplace mental health initiative
Preventing psychological harm becomes priority with NSW's new Psychological Health and Safety Strategy 2024–2026.
Supporting employers, safeguarding workers
The NSW Government recently introduced a plan to support employers in managing psychosocial risks and safeguarding their workers from psychological harm. The strategy says:
Preventing psychological harm needs to be a core focus for every business in NSW
The SafeWork NSW Psychological Health and Safety Strategy 2024-2026 aims to assist employers in fulfilling their duty to prevent psychological harm in NSW workplaces.
With an allocation of $5.6 million over two years, the strategy will implement workplace mental health programs for small and medium businesses in collaboration with the Black Dog Institute and Transitioning Well.
Mental health incurring estimated $39 billion in costs
NSW data shows that psychological claims rose 30% between financial years 2018–19 and 2022–23, compared with 11% for physical claims. The average cost and time off work in these cases is more than triple that of physical claims.
In 2022, 28% of workers experienced a mental health condition. That is more than one in four workers according to the strategy research.
Workplace mental health issues incur significant costs for Australian businesses annually, estimated at up to $39 billion due to decreased productivity and participation.
Small businesses, which comprise the majority of employers in NSW and often have limited resources for mental health management, are the primary focus of these programs.
Key initiatives
Key initiatives of the 2024-2026 strategy include:
- Providing practical tools.
- Resources, and webinars for businesses.
- Ensuring accessibility for culturally and linguistically diverse workers.
- Enhancing SafeWork NSW's inspectorate capabilities.
- Conducting compliance visits in high-risk workplaces.
- Establishing industry forums to identify psychosocial hazards.
SafeWork NSW engaged with various stakeholders, including workers, health and safety professionals, unions, and businesses, during the strategy's development.
See the diagram below for a "plan on a page" from the strategy.
Statements and comments
Minister for Work Health and Safety Sophie Cotsis said:
“It is a fundamental right of every worker to come home safe to their loved ones both physically and mentally.”
Minister for Small Business Steve Kamper said:
“NSW is home to roughly 850,000 small businesses which employ 1.7 million people or about 43 per cent of the state’s private sector workforce.”
“By addressing psychosocial risks, we are not only protecting the health of our workforce, we are protecting the businesses of NSW from lost participation and productivity.”
Minister for Mental Health Rose Jackson said:
“The last few years have been particularly hard for people. Our workforce has been impacted by increased pressure from the cost-of-living, natural disasters, and COVID-19.”
Acting Deputy Secretary SafeWork NSW Trent Curtin said:
“Large businesses and government agencies at high-risk of psychological injuries can expect compliance checks from SafeWork NSW.”
“SafeWork NSW will issue improvement notices, prohibition notices or formal regulator warnings and may prosecute workplaces who repeatedly do not comply or where they have seriously breached WHS laws.”
“In addition to being an obligation under Work Health and Safety regulations, a psychologically healthy and safe workplace helps reduce business costs. These include costs associated with absenteeism and presenteeism, where staff are away from work and where staff are attending work under stress or experiencing mental health issues. Presenteeism is estimated to have an annual cost of $1680 per employee.”
You can read and download the strategy here.
Sources
New strategy to address psychological risks in the workplace with $5.6m in business assistance by NSW Government, 22nd May, 2024.
Psychological Health and Safety Strategy 2024–2026 by SafeWork NSW, 2024.
