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Regional employees’ mental health claims skyrocket

By Amelia McNamara | October 21, 2026|2 minute read
Regional Employees Mental Health Claims Skyrocket

Rurally based employees are both disproportionately affected by and take longer to recover from mental health injuries – with employers being urged to reconsider how they support the approximately 3.27 million Australians within the national trend.

Latest data from Allianz Australia has revealed the extent of the mental health crisis and the severity of related organisational risks.

According to latest claims data, more than one in three active mental injury claims related to a regional worker, with their recovery time also averaging 16 days longer than that of a metropolitan-based employee – 88 to 72, respectively.

 
 

Further, almost a quarter of surveyed regional employees reported the state of their mental health as worse than it has ever been during their working life.

And while the average cost of a mental injury claim rose 5 per cent for metro areas, it increased by 25 per cent in regional areas in the same period.

According to Allianz claims, workplace stress, harassment and workplace violence are the strongest drivers of mental injuries in regional workplaces.

Support channels were identified as a common workplace deficiency, with the survey finding that 18 per cent of surveyed regional employees claimed a lack of mental health aid in their workplaces, 61 per cent did not know how to access support if they needed it, and just over a quarter have or would seek help.

Awareness also polled low at 14 per cent for mental health training and 26 per cent for wellness or health programs.

It is no surprise, then, that almost one in three regional workers are likely to consider leaving their current employment in the next six to 12 months – equating to a potential job exodus of 703,000 regional Australians.

Allianz Australia’s national manager of personal injury mental health strategy, Brianna Cattanach, said the trends “point to a widening workplace mental health gap that demands our attention”.

With employee sentiment reflecting issues with preventative mental health support, manager capability and a culture of privacy within workplaces that causes employees to feel uncomfortable discussing mental health and leave with their employer, organisations are being urged to improve mental health awareness and increase mental health resources as part of a broader shift to proactive measures.

Cattanach told HR Leader: “Organisations often focus on support once someone reaches a crisis point, but effective workplace mental health strategies need to start much earlier.”

“When employees are hesitant to ask for help or don’t know where to find it, employers risk losing good people before problems are identified. Building manager capability, improving awareness of available support and fostering open conversations about mental health can make a meaningful difference, particularly in regional workplaces where barriers to accessing care may be greater.”

Highlighting the mutual benefit of proactive action, Allianz Australia’s executive general manager of personal injury, Mark Pittman, said: “Access to services, workforce capacity and local support networks can all influence how quickly someone is able to recover and return to work.”

RELATED TERMS

Employee

An employee is a person who has signed a contract with a company to provide services in exchange for pay or benefits. Employees vary from other employees like contractors in that their employer has the legal authority to set their working conditions, hours, and working practises.

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