Closing the workplace mental health gap

The regional workplace mental health gap

Workplace mental health is one of Australia’s biggest workforce challenges. Yet new Allianz research suggests where people live and work may play a greater role in mental wellbeing than previously understood.

Analysis of Allianz mental injury claims data identified a clear gap between regional and metropolitan (metro) Australia. Regional workers experience a higher proportion of mental injury claims and spend longer away from work following a claim.

While the data tells us a gap exists, it doesn't tell us why.

To better understand the gap, we commissioned research to explore the experiences and pressures shaping employees’ mental wellbeing.

The research findings reveal that workplace mental health involves far more than what happens at work. Place is central to wellbeing, especially in regional workplaces.

“Our claims data reveals a concerning divide. Regional workers are more likely to experience a work-related mental injury and take almost 88 days on average to return to work. These are not just statistics, but people, families, workplaces, and communities living with the impact of mental injury.”

Mark Pittman, Executive General Manager Allianz Personal Injury

Key workplace research findings

Regional workers experience poorer outcomes

Regional workers experience a higher proportion of mental injury claims than metro workers and spend longer away from work following a mental injury claim.

This suggests place matters, but understanding why requires looking beyond the claim itself.

Mental wellbeing is shaped by more than work

Employees identified work, finances, family responsibilities, relationships, health, and community connection as important influences on their wellbeing.

Support isn't always visible or accessible

Many employees reported uncertainty about what support is available and how to access it.

Employees’ expectations are evolving

Employees increasingly see mental wellbeing as an important part of a positive workplace experience.

How mental health outcomes differ in regional Australia

Workers across the country face mental health challenges, but regional employees are experiencing poorer outcomes. Across every major mental injury claim type, recovery takes longer in regional communities. This highlights a significant gap in mental health outcomes between regional and metro employees.

Allianz mental injury claim data identified:

19.0% of regional claims are mental injury claims, compared to 13.4% in metro areas.

In financial year 2026 (FY26), regional employees with a mental injury claim were away from work for an average of 84.3 days, around two weeks longer than metro employees with a mental injury claim, at 71.2 days.

The average duration of a regional mental injury claim was more than three times that of a regional physical injury claim, at 23.7 days.

Over the past five years, the average cost of regional mental injury claims increased by 25%, compared with a 5% increase for metro mental injury claims.

The gap is across all major mental injury claim types and is largest for claims arising from traumatic events. Workplace violence is also a growing concern.

Over the past five years, regional workers experiencing a mental injury following a traumatic event were away from work for an average of 100.7 days. That’s more than 25 days longer than metro workers (75.4 days).
Over the past five years, workplace violence-related mental injury claims increased by 20% in regional Australia. That’s nearly four times the rate observed in metro areas (5.6%).

These findings raise important questions about why outcomes are poorer in regional Australia. Are workplace pressures, access to services, or community and economic challenges driving the gap? Or is it a mix of factors acting together?

What employees told us

To better understand these differences, we asked employees about the pressures affecting their mental wellbeing and workplace experience.

Mental health doesn't stop when the workday ends

Employees told us wellbeing is influenced by a combination of pressures, not just what happens at work.

Almost one in four surveyed regional employees (24%) say their current mental health is worse than it’s been at other points in their working life.

The leading negative factors affecting surveyed regional employees’ mental health are:

Personal financial situation: 43%
Quality of relationships and sense of connection: 33%
Workload, work pace and deadlines: 32%

However, relationships and connection can also be protective, supporting mental wellbeing. Employees identified these positive influences:

Quality of relationships and sense of connection: 44%
Family and caring responsibilities: 29%
Community connection and leisure activities: 25%.

“Place matters. Regional workers often face unique pressures, including financial uncertainty, workforce shortages, and reduced access to services. Effective support must reflect these realities rather than assume metropolitan approaches will work everywhere.”

Brianna Cattanach, National Manager Mental Health Strategy

The challenges regional workers face

Employees in regional Australia described these circumstances as factors affecting their wellbeing.

A carer and an elderly male using a walker

Many faced two key issues: ongoing personal financial pressures (43%) and difficulty accessing support when needed:

Only 18% of surveyed regional employees say workplace-funded services, such as local psychologists, GPs or nurse-on-call services, are available in their area.
10% of surveyed regional employees identify waitlists or appointment availability as a barrier to accessing support when they need it.

Others highlighted the benefits of regional living, including stronger community connections and a greater sense of belonging.

While regional communities differ, the findings suggest regional workplace mental health is shaped by a mix of opportunities and pressures. This highlights the importance of understanding regional experiences on their own terms, rather than viewing them through a metro lens.

“A service may technically be available but still feel out of reach. Effective support must consider location, working hours, privacy, digital access and local care availability. The best workplace strategies combine universal prevention with tailored pathways that reflect real-world needs.”

Brianna Cattanach, National Manager Mental Health Strategy

Support isn’t always visible or accessible

Only half of surveyed regional employees (49%) are satisfied with their organisation creating a mentally healthy workplace, in the last six months – a decrease of 13% from 2025.

A key theme in our research was uncertainty about available support. Only a small number of surveyed regional employees know about workplace mental health resources.

What support is available

Only 26% of surveyed regional employees are aware of workplace wellness or health programs, compared with 33% of metro employees.

Only 14% of surveyed regional employees are aware of mental health training or workshops, compared with 20% of metro employees.

Only 32% are aware of mental health resources or toolkits.

How to access support

61% of surveyed regional employees don’t know how to access workplace mental health support if they need it.

Few employees seek support

Nearly three-quarters (73%) of regional employees have never used mental health support from their current workplace or employer.

Only 27% of regional employees have or would seek mental health support when their mental health is affecting their work or life.

Regional employees surveyed also report discomfort raising mental health concerns with their manager:

29% would be uncomfortable discussing general work-related stress or anxiety.
34% would be uncomfortable requesting time off for mental health reasons.
34% would be uncomfortable discussing external pressures affecting their work.

These findings suggest that offering support isn’t enough. Employees need to know it exists and feel comfortable using it.

Why the workplace mental health gap matters

Regional Australia is home to millions of workers and supports many industries that keep Australia moving. Yet conversations about workplace mental health are often shaped by metro experiences.

The impact goes beyond individual wellbeing. Almost one-third of surveyed regional employees (31%) say they’re likely to consider leaving their organisation in the next 6 to 12 months. That's around 703,000 regional workers.

By listening to employees and examining the differences between regional and metro outcomes, we can better understand the challenges they face. We can begin building a more complete understanding of workplace mental health across Australia.

The research findings show that employee experiences vary. Place may play a bigger role in workplace mental health than we previously understood.

If we want to improve workplace mental health outcomes, we need to better understand how place, community, work, and life pressures interact for different groups of workers.

“Workplaces cannot wait until someone is unwell or a claim has been lodged before acting. Mentally healthy workplaces identify and manage psychosocial risks, equip managers to respond early and create an environment where employees feel safe raising concerns. That requires an integrated approach spanning prevention, early intervention, support and recovery.”

Mark Pittman, Executive General Manager Allianz Personal Injury

Starting the conversation to close the gap

The research is the first stage of our Allianz Care: Closing the Workplace Mental Health Gap initiative.

This stage focused on understanding the experiences behind the data by listening directly to employees across regional and metro Australia. The findings confirm that we can’t view workplace mental health in regional Australia through a metro lens.

While the data shows a clear gap in outcomes, there’s no single cause or simple solution.

For employers, this presents both a challenge and an opportunity. Staff retention and mental health concerns continue to grow. Understanding what influences employee wellbeing is more important than ever.

The next stage in this research moves from understanding the problem to exploring the solution. We’ll examine practical steps employers can take to build mentally healthier and more resilient workplaces across regional and rural Australia. To do this, we’ll seek insights from employers, industry leaders, and workplace mental health experts.

image of a man and a women talking and smiling

Our support for employers

We’re working to further examine the mental health gap across Australia and develop practical resources to help regional employers build mentally healthier workplaces.

Discover more of our research, workplace mental health resources, tools, and guidance to help you and your workers.

Workplace mental health resources

imag of two women talking and walking in a garden

Our support for employees

Our Regional Claims Specialist program supports employees in rural and remote NSW who’ve been injured at work. We help connect them with the services they need to recover and return to work.

Read Bridging the gap in regional health

Learn more about workers’ compensation

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About the research

The research was commissioned by Allianz and conducted by YouGov in accordance with the Australian Polling Council standard. The survey is a nationally representative sample comprising 1,522 employees (middle managers and below) in Australia aged 18 years and older. This study was conducted online between 10 August 2026 and 20 August 2026. Following the completion of interviewing, the data was weighted by age, gender, and region to reflect the latest Australian Bureau of Statistics (ABS) population estimates.

Claims data reference: Allianz Workers' Compensation claims data from 1 July 2021 to 30 June 2026, across all Allianz portfolios including Allianz Australia's Underwritten Workers' Compensation, NSW Managed Fund (for both private and public sector employees) and Victorian Managed Fund Portfolios.

Sources

Allianz mental injury claims data (1 July 2021 – 30 June 2026)
YouGov survey (1,522 employees, 10 August 2026 – 20 August 2026)

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