The personal and national costs of mental health conditions: Impacts on income, taxes, government support payments due to lost labour force participation

Deborah Schofield, Rupendra Shrestha, Richard Percival, Emily Callander, Simon Kelly

    Research output: Contribution to journalArticle

    29 Citations (Scopus)
    3 Downloads (Pure)

    Abstract

    Background Mental health conditions have the ability to interrupt an individual's ability to participate in the labour force, and this can have considerable follow on impacts to both the individual and the state. Method Cross-sectional analysis of the base population of Health&WealthMOD, a microsimulation model built on data from the Australian Bureau of Statistics' Survey of Disability, Ageing and Carers and STINMOD, an income and savings microsimulation model was used to quantify the personal cost of lost income and the cost to the state from lost income taxation, increased benefits payments and lost GDP as a result of early retirement due to mental health conditions in Australians aged 45-64 in 2009. Results Individuals aged 45 to 64 years who have retired early due to depression personally have 73% lower income then their full time employed counterparts and those retired early due to other mental health conditions have 78% lower incomes. The national aggregate cost to government due to early retirement from these conditions equated to $278 million (£152.9 million) in lost income taxation revenue, $407 million (£223.9 million) in additional transfer payments and around $1.7 billion in GDP in 2009 alone. Conclusions The costs of mental health conditions to the individuals and the state are considerable. While individuals has to bear the economic costs of lost income in addition to the burden of the conditions itself, the impact on the state is loss of productivity from reduced workforce participation, lost income taxation revenue, and increased government support payments - in addition to direct health care costs.
    Original languageEnglish
    Pages (from-to)1-7
    Number of pages7
    JournalBMC Psychiatry
    Volume11
    Issue number72
    DOIs
    Publication statusPublished - 2011

    Fingerprint

    Income Tax
    Mental Health
    Costs and Cost Analysis
    Taxes
    Aptitude
    Retirement
    Health
    Health Care Costs
    Caregivers
    Economics
    Depression
    Efficiency

    Cite this

    Schofield, Deborah ; Shrestha, Rupendra ; Percival, Richard ; Callander, Emily ; Kelly, Simon. / The personal and national costs of mental health conditions: Impacts on income, taxes, government support payments due to lost labour force participation. In: BMC Psychiatry. 2011 ; Vol. 11, No. 72. pp. 1-7.
    @article{054600aadcd3490a844fa3d52f65c108,
    title = "The personal and national costs of mental health conditions: Impacts on income, taxes, government support payments due to lost labour force participation",
    abstract = "Background Mental health conditions have the ability to interrupt an individual's ability to participate in the labour force, and this can have considerable follow on impacts to both the individual and the state. Method Cross-sectional analysis of the base population of Health&WealthMOD, a microsimulation model built on data from the Australian Bureau of Statistics' Survey of Disability, Ageing and Carers and STINMOD, an income and savings microsimulation model was used to quantify the personal cost of lost income and the cost to the state from lost income taxation, increased benefits payments and lost GDP as a result of early retirement due to mental health conditions in Australians aged 45-64 in 2009. Results Individuals aged 45 to 64 years who have retired early due to depression personally have 73{\%} lower income then their full time employed counterparts and those retired early due to other mental health conditions have 78{\%} lower incomes. The national aggregate cost to government due to early retirement from these conditions equated to $278 million (£152.9 million) in lost income taxation revenue, $407 million (£223.9 million) in additional transfer payments and around $1.7 billion in GDP in 2009 alone. Conclusions The costs of mental health conditions to the individuals and the state are considerable. While individuals has to bear the economic costs of lost income in addition to the burden of the conditions itself, the impact on the state is loss of productivity from reduced workforce participation, lost income taxation revenue, and increased government support payments - in addition to direct health care costs.",
    author = "Deborah Schofield and Rupendra Shrestha and Richard Percival and Emily Callander and Simon Kelly",
    year = "2011",
    doi = "10.1186/1471-244X-11-72",
    language = "English",
    volume = "11",
    pages = "1--7",
    journal = "BMC Psychiatry",
    issn = "1471-244X",
    publisher = "BioMed Central",
    number = "72",

    }

    The personal and national costs of mental health conditions: Impacts on income, taxes, government support payments due to lost labour force participation. / Schofield, Deborah; Shrestha, Rupendra; Percival, Richard; Callander, Emily; Kelly, Simon.

    In: BMC Psychiatry, Vol. 11, No. 72, 2011, p. 1-7.

    Research output: Contribution to journalArticle

    TY - JOUR

    T1 - The personal and national costs of mental health conditions: Impacts on income, taxes, government support payments due to lost labour force participation

    AU - Schofield, Deborah

    AU - Shrestha, Rupendra

    AU - Percival, Richard

    AU - Callander, Emily

    AU - Kelly, Simon

    PY - 2011

    Y1 - 2011

    N2 - Background Mental health conditions have the ability to interrupt an individual's ability to participate in the labour force, and this can have considerable follow on impacts to both the individual and the state. Method Cross-sectional analysis of the base population of Health&WealthMOD, a microsimulation model built on data from the Australian Bureau of Statistics' Survey of Disability, Ageing and Carers and STINMOD, an income and savings microsimulation model was used to quantify the personal cost of lost income and the cost to the state from lost income taxation, increased benefits payments and lost GDP as a result of early retirement due to mental health conditions in Australians aged 45-64 in 2009. Results Individuals aged 45 to 64 years who have retired early due to depression personally have 73% lower income then their full time employed counterparts and those retired early due to other mental health conditions have 78% lower incomes. The national aggregate cost to government due to early retirement from these conditions equated to $278 million (£152.9 million) in lost income taxation revenue, $407 million (£223.9 million) in additional transfer payments and around $1.7 billion in GDP in 2009 alone. Conclusions The costs of mental health conditions to the individuals and the state are considerable. While individuals has to bear the economic costs of lost income in addition to the burden of the conditions itself, the impact on the state is loss of productivity from reduced workforce participation, lost income taxation revenue, and increased government support payments - in addition to direct health care costs.

    AB - Background Mental health conditions have the ability to interrupt an individual's ability to participate in the labour force, and this can have considerable follow on impacts to both the individual and the state. Method Cross-sectional analysis of the base population of Health&WealthMOD, a microsimulation model built on data from the Australian Bureau of Statistics' Survey of Disability, Ageing and Carers and STINMOD, an income and savings microsimulation model was used to quantify the personal cost of lost income and the cost to the state from lost income taxation, increased benefits payments and lost GDP as a result of early retirement due to mental health conditions in Australians aged 45-64 in 2009. Results Individuals aged 45 to 64 years who have retired early due to depression personally have 73% lower income then their full time employed counterparts and those retired early due to other mental health conditions have 78% lower incomes. The national aggregate cost to government due to early retirement from these conditions equated to $278 million (£152.9 million) in lost income taxation revenue, $407 million (£223.9 million) in additional transfer payments and around $1.7 billion in GDP in 2009 alone. Conclusions The costs of mental health conditions to the individuals and the state are considerable. While individuals has to bear the economic costs of lost income in addition to the burden of the conditions itself, the impact on the state is loss of productivity from reduced workforce participation, lost income taxation revenue, and increased government support payments - in addition to direct health care costs.

    U2 - 10.1186/1471-244X-11-72

    DO - 10.1186/1471-244X-11-72

    M3 - Article

    VL - 11

    SP - 1

    EP - 7

    JO - BMC Psychiatry

    JF - BMC Psychiatry

    SN - 1471-244X

    IS - 72

    ER -