A generation under pressure: What Australia’s Health 2026 tells us about mental health

Young people are continuing to face rising levels of mental health challenges, and our mental health system and services are struggling to keep up with demand.

This was a key takeaway from the Australia's Health 2026 report from the Australian Institute of Health and Welfare, released earlier this month.

The findings reinforced what many of us in the mental health sector have been seeing firsthand for years. 

Rates of mental health challenges among young people have been rising steadily for more than a decade. Australian Institute of Health and Welfare data shows that in 2007, 26 per cent of Australians aged 16 to 24 reported experiencing a mental illness. By 2020-22, that figure had risen to 39 per cent.

It’s not surprising. Our younger generation is living through a period of compounding pressures, uncertainty and disruption. They are facing issues including housing affordability, cost-of-living pressures, fraying social cohesion and experiencing the impacts of social media, all of which can affect our mental health.

We know that three-quarters of all mental health conditions emerge before the age of 25, making early intervention and youth-focused supports critical. 

Australia's Health 2026 found that young people are the age group most likely to access Medicare-subsidised mental health services, reflecting both growing awareness and increasing need.

The report also highlights the impact of mental health challenges across the broader community. Mental health conditions and substance use disorders are now the leading cause of living with poor health in Australia, accounting for 26% of the non-fatal “burden of disease”.

It also shows the increasing number of Australians living with severe mental health challenges, or psychosocial disability, up from 4.6 per cent in 2018 to 6.5 per cent today. At the same time, around half a million people with psychosocial disability are already falling through the cracks of our systems, not receiving support through the NDIS or other government-funded programs. 

In Aboriginal and Torres Strait Islander communities, mental health conditions and substance use disorders continue to rank among the leading disease groups, showing the need for further action to close the health gap. 

These findings sit within broader health trends. The report shows that Australia compares well internationally across many health measures, but while Australians are living longer than previous generations, our ‘disease profile’ is changing. Chronic conditions have a significant impact on Australia’s health. 

These shifts are placing increasing pressure on our health system. While bulk billing has increased, rates of hospital admissions and ED presentations remain high, and wait times to be seen in emergency hospital presentations have lengthened. 

Investment in community-based supports that prevent unnecessary hospital admissions – such as psychosocial supports – is more important than ever.  

Importantly, Australia's Health 2026 provides more than just a snapshot of the nation's health; it gives us a clear picture of where the gaps remain and reinforces where our advocacy efforts must focus, particularly as negotiations begin on the next National Mental Health and Suicide Prevention Agreement. 

We need sustained investment in prevention, early intervention and youth mental health services, alongside stronger supports for people living with severe and persistent mental health challenges, or psychosocial disability, and their family, carers and kin.

We must ensure that young people and those living with significant mental health challenges can access the support they need, when they need it. Behind every statistic is a person, a family and a community. They deserve timely, effective support and the opportunity to live well.