This discussion paper examines the role of psychosocial support within Australia’s mental health system and reviews existing economic evidence on its impact. While available Australian evidence suggests psychosocial supports contribute to improved mental health, social outcomes, and broader economic benefits, the evidence base remains limited and underdeveloped, particularly in terms of robust economic evaluation.

The paper identifies a lack of agreed definitions, conceptual frameworks, and system‑level assets to support consistent implementation, measurement, and evaluation of psychosocial supports. It concludes that stronger investment is needed in defining, mapping, and evaluating psychosocial programs, including comprehensive economic evaluation, to better capture their mental health, social, and economic value.

Psychosocial support are non-clinical programs that facilitate recovery in the community for people experiencing mental illness. Psychosocial supports cover a broad range of domains: accessing and maintaining housing and employment, making friends, or sustaining positive relationships, hobbies, and interests.

Key findings

1. Economic evaluations of psychosocial support programs that do exist show strong results in terms of value and cost offsets.
2. There is a very limited number of economic evaluation studies of psychosocial support.
3. Systemic factors seem to be limiting effective economic evaluation.