The compensation and disability claims systems, traditionally built for physical injuries are now significantly driven by mental health concerns. These developments were demonstrated in the Brittany Higgins saga where it was revealed that a $2.4 million damage payout to Higgins from the federal government was indicative of emerging trends in psychological compensation.

Government plan to contain the growing expense of National Disability Insurance Scheme (NDIS), which is projected to cost $100 billion by the end of the decade, was another major story at the end of 2023. It was found that an increased number of recipients of NDIS have an autism diagnosis, making Australia the country with the highest autism diagnosis globally. Furthermore, a significant number of recipients are categorized under psycho-social classifications, which are intrinsically linked to psychiatric diagnoses.

Similar to the NDIS, the NSW health system also experienced pressure due to an increase in workers’ compensation claims for psychiatric cases. Approximately half of NDIS beneficiaries are connected to a psychological diagnosis, differing from the public perception of the program primarily aimed at individuals with severe physical disabilities.

There has been a consistent increase in the acceptance rate of mental health claims over the past decade. Professor John Buchanan believes there is a shift from physical illnesses and disabilities to mental health concerns, causing a rise in compensation costs. This is due to mental health awareness, social justice advocacy, and government incentives that promote dependency justified by the wide acceptance of the psychological sickness role.

To manage the growing economic pressure, authority figures must apply greater scrutiny and prudence in the sector.