2 October 2002

Compensation for Mental Harm

In response to comments today from the Mental Health Council of Australia and beyondblue, Assistant Treasurer and Minister for Revenue Senator Helen Coonan said that she had no intention of offending individuals with anxiety, depression or other recognised mental illnesses.

"I am concerned that my comments may have been taken out of context," Senator Coonan said.

"The Final Report of the Review of Negligence has recommended that people with claims for recognised mental illness should be compensated by the courts, and it is a recommendation that I agree with, as I expressed in the interview on ABC radio this morning.

"The proposals put forward in the Review of the Law of Negligence simply recommend that claims for consequential mental harm, that is mental harm flowing from a physical injury, should be assessed on the same basis as claims for pure mental harm, that is that it should be for a recognised psychiatric illness.

"Mental illness is a serious issue for the Australian community and claims which are not based on genuine illness or injury have the potential to drain resources from the system at the expense of those who genuinely deserve compensation.

"The reforms put forward by the Negligence Review Panel are not intended to adversely impact on people who are genuinely injured as a result of another person's negligent acts.

"This of course includes people who suffer from genuine depression, anxiety, or other recognised mental illness.

"It is unfortunate if my comments have offended anyone. That was certainly not intended. I am prepared to meet with representatives from the Mental Health Council of Australia and beyondblue if they wish to discuss any issues they may have with the report and the approach to compensation for mental harm."