Financial security and strong communities could prevent one in three mental health conditions: new study
New modelling from the University of Sydney’s Brain and Mind Centre shows that improving core social and economic conditions, especially people’s sense of financial security and connection with their local community, would significantly bring down Australia’s mental illness burden at population scale.
The findings and recommendations put forward in the ‘Dynamic Bayesian Network Analysis of the Social Determinants of Mental Health’ report, published today provide critical insights for policy makers, as the federal government’s own data shows mental ill-health costs the economy up to $220 billion a year.
Using data from the nationally representative Household, Income and Labour Dynamics in Australia survey and a sample of about 25, 000 adults, the team mapped how money worries, loneliness, community connection, physical health, and a range of other social and economic factors combine to drive mental distress.
The analysis found that if every Australian was satisfied with their financial situation, the national rate of mental illness would fall by roughly three percentage points, or almost one third of current cases.
“Our modelling emphasizes the substantial contribution of people’s social and economic environments to their mental health. Policies designed to increase subjective financial wellbeing and promote social participation and local community engagement are likely to be critical for reducing the vast personal and societal costs of mental illness,” the paper’s lead author and Research Fellow at the University of Sydney’s Brain and Mind Centre Dr Adam Skinner said.
“More services and better treatments alone won't end the mental health crisis. This work confirms that genuine economic and social reforms, including a serious Job Guarantee and deeper investment in local community life, are central to cutting the rising tide of distress,” the University of Sydney’s Brain and Mind Centre’s Co-Director Professor Ian Hickie said.
“Real action on the social determinants will free services to focus on those who truly need individual clinical care,” he said.
Other key findings include lifting community engagement and reducing loneliness would also reduce the burden of mental ill health, while policies that create secure and fairly paid work, such as a Job Guarantee program that sets a minimum wage for jobs that benefit the community, such as after school care programs and meal delivery services for the elderly and those living with a disability would also provide additional mental health gains.
Key points from the research:
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Improving financial satisfaction alone cuts mental illness by a third.
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Lifting community engagement and reducing loneliness both bring sizeable additional gains.
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A national Job Guarantee would raise incomes, lift financial confidence and strengthen community ties.
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Invest in local connection by supporting volunteer programs to boost a sense of belonging and reduce rates of loneliness
Media contact: Kathleen Ferguson - 0421 522 080
Note: Dynamic Bayesian Network Analysis of the Social Determinants of Mental Health appears in PNAS Nexus (Advance Access 2025) as of today.