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Mentally Healthy Workplaces Australia is being established by Monash University and will focus on research into better return-to-work outcomes and strengthening psychological standards.

It will serve as a hub for “co-designing strategies” aimed at creating safer and more productive workplaces, incorporating research across government, industry, and academia.

Industrial Relations Minister Sophie Cotsis said the centre would enable the innovation needed “to ensure safe workplaces are a fundamental right, not a privilege.”

“Supporting this important collaboration is just part of the work the NSW government is doing to improve psychological safety at work and is complemented by $344m in new funding for a workplace mental health package,” she said.

Customer Service Minister Jihad Dibb said the investment reflected a commitment to better understanding mental health in the workplace.

“Mentally healthy workplaces are not just better for individuals – they are better for communities, businesses, and for the economy,” he said.

“We know workers’ compensation claims for psychological injury at work have increased significantly over recent years and these workers are away from the workforce for longer.”

The centre will be tasked with co-creating a national strategy to keep Australia at the forefront of workplace mental health and wellbeing and is the result of a collaborative effort backed by more than 40 initial partners and $58m in in-principal commitments.

The latest funding comes as the NSW government continues to struggle to pass its sweeping workers’ compensation reform, which critics say will leave the most psychologically harmed workers without assistance.

Treasurer Daniel Moohkey said the reforms were integral to keeping the state’s self-insurer and nominal insurer afloat.