More than 8 million Australians now rely on some form of income support, putting pressure on a safety net that was never designed to take on so many, but insurers say earlier intervention and unified assessment processes would improve the system.<\/p>\n
With around 2 million more people now accessing payments than a decade ago, the surge is being driven by Australians whose physical and mental health has deteriorated to the point they can no longer work.<\/p>\n
Mental ill health now accounts for about one-third of claims across Australia’s major income support schemes, according to data compiled by researchers at Monash University and SuperFriend for the Council of Australian Life Insurers (CALI).<\/p>\n
“We are now faced with a major national productivity challenge,” said Christine Cupitt, chief executive of CALI.<\/p>\n
“It’s not just one part of the system under pressure \u2014 the entire safety net is under strain.”<\/p>\n
CEO of CALI, Christine Cupitt, says the entire system is under pressure. (ABC News: Scott Preston)<\/p>\n
CALI \u2014 whose members have a direct commercial interest in reducing long\u2011term income protection claims \u2014 argues earlier intervention is critical.<\/p>\n
The report found demand had increased across all 11 of Australia’s income support systems, spanning employer-provided sick leave and workers’ compensation to social security payments, superannuation and life insurance claims.<\/p>\n
While around 8 million Australians receive some form of income support each year, the vast majority \u2014 about 7.5 million \u2014 are accessing more employer provided sick leave, typically for short periods of around three weeks, rather than government welfare payments such as JobSeeker or the disability support pension.<\/p>\n
However, more people are exhausting sick leave and moving into longer term support, where the chances of returning to work diminish.<\/p>\n
“Mental health has really changed the profile of these claims,” Ms Cupitt said.<\/p>\n
“It’s now one of the leading drivers of people needing income support, and these claims tend to be more complex and longer in duration.”<\/p>\n
‘It took me completely by surprise’<\/p>\n
For 30\u2011year-old Lauren Frahamer, the statistics are reflected in her daily life, after long COVID meant she could no longer work.<\/p>\n
Before she fell ill, Ms Frahamer was a stage manager on major musical theatre productions, working around 50 hours a week, often nights and weekends, while maintaining an intense fitness routine of gym sessions, swimming, running and yoga.<\/p>\n
“I was very active,” she said. “Work was a big part of my life.”<\/p>\n
She contracted COVID-19 in December 2021, during an outbreak that spread through her workplace.<\/p>\n
<\/p>\n
Ms Frahamer says fear and confusion set in as symptoms dragged on. (ABC News: Harrison Tippet)<\/p>\n
The acute illness was brutal but unremarkable \u2014 weeks of fever, pain and exhaustion \u2014 but recovery never came.<\/p>\n
“I tried to go back to work for about a month and just couldn’t do it,” she said.<\/p>\n
“I had extreme fatigue. I had brain fog. I couldn’t remember a sentence well enough to pass a message on. My job depends on focus for hours at a time, and I just didn’t have it.”<\/p>\n
As the symptoms dragged on, Ms Frahamer said confusion and fear set in.<\/p>\n
“I was mentally unwell through that whole process,” she said.<\/p>\n
“At first, I was almost numb. Then as my brain started coming back online, I realised something was seriously wrong.<\/p>\n
“I hadn’t had a major health event before \u2014 it took me completely by surprise.”<\/p>\n