Cost of living pressures, housing stress and growing concerns about technology are among the factors shaping mental health and wellbeing across Australia, according to a new report released by the National Mental Health Commission.
The Commission’s National Report Card 2025: Environmental Scan examines major events and emerging trends during 2025 that may have affected mental health outcomes. It has been published ahead of the Commission’s broader National Report Card, which assesses the performance of Australia’s mental health system.
The report argues that improving mental health outcomes will require a stronger focus on prevention and a broader approach that extends beyond healthcare services.
Commission chief executive David McGrath said financial pressures and housing affordability had continued to place sustained strain on individuals and households.
“Improving mental health and wellbeing in Australia will require more than simply expanding mental health services,” Mr McGrath said.
The environmental scan identifies housing, education, employment, social services, justice, technology and climate policy as areas that influence mental health outcomes. It suggests that responsibility for prevention remains spread across different government portfolios and jurisdictions, making coordinated reform difficult.
The report also points to growing concerns about psychosocial risks linked to technology, particularly social media and artificial intelligence.
Young people were identified as being especially affected by loneliness, workplace burnout and uncertainty about the future, with these pressures contributing to reduced optimism.
The environmental scan found that Aboriginal and Torres Strait Islander people continue to experience disproportionate impacts on mental health, including the effects of racism and increased demand for mental health support services.
Mr McGrath said a coordinated and measurable approach to reform was needed.
“Reform needs to be coordinated, measurable and sustained. There is a need for a unifying framework to align planning, priorities, investment and outcomes,” he said.
The report draws attention to the Productivity Commission’s review of the National Mental Health and Suicide Prevention Agreement, which has highlighted challenges in coordination across governments.
Mental health organisations have increasingly argued that prevention should play a larger role in national policy, particularly as housing affordability, financial stress and digital technology continue to affect many Australians. At the same time, governments have invested in expanding mental health services, with debate continuing over how funding should be balanced between treatment and prevention.
The Commission said earlier action across multiple areas of government policy would be needed to address the conditions contributing to mental health challenges.
The full National Report Card 2025: Environmental Scan is available through the National Mental Health Commission.
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