🧠 $5.4M Investment in Mentally Healthy Workplaces + New Victoria Laws
Posted on: 7 October 2025
Big news for mental health in the workplace — the NSW and Victorian governments have both announced major initiatives aimed at improving psychological safety for workers across Australia.
💰 $5.4 Million Towards a National Mental Health Hub
The NSW Government is investing $5.4 million to help launch Mentally Healthy Workplaces Australia (MHWA), a new national centre led by Monash University. The centre aims to:
- 🧪 Drive innovation and evidence-based solutions for psychological safety
- 👷 Co-create strategies across government, academia, and industry
- 📉 Reduce mental health claims and absenteeism
- 🚀 Improve return-to-work outcomes
MHWA is backed by more than 40 founding partners and aims to raise over $180 million in funding over 7 years.
📊 Why It Matters
According to the NSW Psychological Health and Safety Strategy, psychologically unsafe workplaces cost the state an estimated $2.8 billion per year. Mental health claims have risen 30% between 2018–19 and 2022–23.
MHWA aims to cut more than 5.5 million days of absenteeism and reduce leave durations for mental health claims from 27 to 23 weeks.
⚖️ Victoria Introduces New Mental Health Laws
Victoria’s new workplace mental health regulations will come into effect on 1 December 2025, targeting psychosocial hazards such as:
- Bullying and sexual harassment
- Workplace aggression and violence
- Exposure to traumatic events or content
Under the new laws, employers will have a legal duty to assess, manage, and control risks to workers’ mental health just as they do for physical hazards.
📋 New Employer Responsibilities
Employers in Victoria must:
- 📌 Identify psychosocial hazards in the workplace
- ⚙️ Conduct formal risk assessments
- 📣 Train and empower leadership teams to mitigate risks
- 📚 Refer to new Codes of Practice and guidance materials released by WorkSafe Victoria
💡 How Mind Safety Supports These Changes
At Mind Safety, we’ve already introduced a Psychosocial Health SWMS category to help workplaces:
- ✔️ Document controls for mental health risks
- ✔️ Align with legal duties in NSW and Victoria
- ✔️ Create a culture of care and compliance
With laws and expectations changing, now is the time to include mental health in your SWMS.