The mental health impacts of trying to make ends meet

Filling up the tank. Doing the weekly shop. Paying the rent. Keeping the lights on. It all adds up. And lately it’s been adding up to a lot more.

As living costs and interest rates rise, many people across Australia are feeling the strain – and it’s taking a toll on their mental health. 

Financial stress and mental health are closely linked. Struggling to make ends meet can affect mental health. At the same time, people living with mental health challenges can be more vulnerable to financial hardship. It’s a cycle that can be hard to break, and right now, it’s tightening for many. 

We’re seeing this across the country. Last week, Lifeline reported that financial distress continues to be a leading driver of demand for its crisis support services, with hundreds of Australians reaching out every day for help in managing cost-of-living pressures and economic hardship.

Beyond Blue also said it was supporting people facing financial stress and linking them to practical help, including the National Debt Helpline and the NewAccess for Small Business program (NASBO).

The burden is falling hardest on those already doing it tough – people living with mental health challenges, people on low incomes and those living in remote, regional or rural areas. Many are delaying care, missing appointments or becoming increasingly isolated because the costs of getting support are out of reach.  

Our members are hearing these stories every day. The Mental Health Coordinating Council, the peak body for community-managed mental health organisations in NSW, reports increasing numbers of people missing critical appointments, becoming more isolated, and presenting in later stages of crisis due to transport barriers and financial stress. 

ACOSS, the Australian Council of Social Services, has also warned that rising fuel costs and broader economic pressures are straining community and mental health services, and has called for urgent government action to better support people most at risk. 

What we’re seeing is deeply concerning: when people can’t get timely mental health support, more people are likely to reach crisis point, creating lasting impacts for individuals, families and communities over time.

That’s why Mental Health Australia has been calling for urgent and sustained action. In our recent Pre‑Budget Submission, we urged the Australian Government to address the economic pressures facing people living with mental health challenges, their families, carers and kin. 

We outlined a number of ways the Government can address disadvantage and ensure equitable access to mental health supports including:

• ensuring social safety nets are mental health responsive
• expanding integrated employment and mental health supports
• fixing funding sustainability issues for mental health services
• and strengthening supports for local regions and priority populations through better regional commissioning and backing community-led organisations.

The cost‑of‑living crunch isn’t going away any time soon. Acting now – while also planning for longer‑term reform – is essential if we are to prevent deeper crisis and support the mental health of our communities.