Depression is often discussed in terms of emotional wellbeing, but for millions of Australians, its effects go far beyond mood and motivation. In 2025, the financial toll of depression is clearer than ever—impacting healthcare costs, lost productivity, and personal finances across the nation. With new policy shifts and more open conversations about mental health, it’s time to look at depression not just as a personal challenge, but as a financial one too.
Counting the Dollars: What Depression Really Costs
Recent research by the Productivity Commission estimates that mental health conditions, including depression, cost the Australian economy around $70 billion annually in lost productivity and healthcare expenses. For individuals, these costs show up in several ways:
- Out-of-pocket health expenses: GP visits, therapy sessions, and medication can quickly add up. Even with Medicare rebates, Australians may pay $80–$250 per session for psychologists in 2025, depending on location and provider.
- Reduced earning capacity: Depression is the leading cause of disability among working-age Australians. Time off work, reduced hours, or even job loss can lead to significant income drops.
- Indirect costs: The ripple effects—missed bills, late fees, or needing to dip into savings—can quietly erode financial stability over time.
For example, a 2024 ABS survey found that 1 in 6 Australians living with depression reported difficulty paying basic household expenses, while 1 in 10 struggled to afford their medication. The financial impact can be long-lasting, especially if depression is untreated or recurring.
Policy Updates and Support in 2025
In response to the growing mental health crisis, the Australian Government has introduced several policy changes in 2025 to help ease both the health and financial burdens of depression:
- Expanded Medicare mental health rebates: Eligible Australians can now access up to 20 subsidised psychology sessions per year, up from 10 in previous years.
- Digital mental health services: Telehealth and online therapy platforms have been made permanent features of Medicare, reducing geographical and cost barriers.
- Workplace mental health initiatives: The 2025 Fair Work Act amendments require larger employers to offer mental health leave and support programs, helping employees stay in the workforce while managing their health.
- Superannuation and insurance changes: Some super funds now provide early access for mental health treatment costs, and insurers are updating policies to cover more mental health claims.
While these updates are promising, gaps remain—especially for those in rural areas, casual workers, or people without private health insurance.
Managing the Financial Impact: Strategies and Real-World Examples
It can feel overwhelming to tackle depression and money worries at the same time. But there are practical steps Australians can take:
- Maximise entitlements: Check your eligibility for Medicare rebates, the Disability Support Pension, or state-based mental health grants.
- Talk to your employer: Many companies now offer Employee Assistance Programs (EAPs) with free counselling. Flexible work arrangements can also help you stay employed while managing symptoms.
- Budget for health: Consider allocating a specific line in your budget for mental health expenses—just as you would for any other essential cost.
- Seek financial counselling: Free services like the National Debt Helpline can help you create a plan for managing bills, debts, or Centrelink applications during tough times.
For example, Emma, a Brisbane-based teacher, used a combination of Medicare-rebated telehealth sessions and her union’s EAP program to access support without falling behind on bills. Meanwhile, Alex, a gig-economy worker in Sydney, accessed free financial counselling to set up payment plans for overdue utilities during a depressive episode.
Conclusion: Breaking the Silence on Money and Mental Health
Depression is more than a private struggle—it has public, social, and financial consequences. By understanding the true cost of depression in Australia and making use of new policies and practical strategies, individuals and families can protect both their health and their wallets. The conversation is shifting, and 2025 is the year to take action—whether for yourself or someone you care about.
