More than 8 million Australians now rely on some form of income support, according to recent data, with a growing number of claims linked to mental health conditions. The system, originally designed for temporary unemployment, is facing unprecedented demand.
Insurers and welfare groups report that mental health claims have become a major driver of the increase, accounting for a significant portion of new applications. Experts say early intervention and unified assessment processes could help manage the strain.
The government has acknowledged the pressure on the safety net but has not announced specific reforms. Critics argue that the system needs a fundamental overhaul to address long-term dependency and rising mental health issues.