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Social and economic disadvantage and mental illness

A considerable number of Australians currently have a mental illness, or will have a mental illness at some time during their lives. Approximately one in five Australian adults had a mental illness in 1997.¹ While the experience of mental illness differs according to the nature of the illness and its severity, people who have a mental illness can face many barriers to participating in everyday activities, such as employment and education.² Hence, while not all people with a mental illness are financially disadvantaged, an overwhelming theme raised in the Project is that many people with a mental illness face great social and financial disadvantage. The overview of available data presented in Chapter 1 indicated that people with a mental illness have lower rates of educational attainment, are less likely to be employed full-time, and are often reliant on social security benefits. People with a mental illness are less likely to be married or living in a relationship, and have high rates of divorce and separation. Previous literature has indicated that many people with a mental illness are dependent on private rental accommodation, public and community housing and boarding house accommodation. Housing stress and homelessness is a reality facing many people with a mental illness.³

The data collected in the Project suggested that the legal issues facing people with a mental illness (see Chapter 3) reflect the disadvantage that they experience. These people experience social security problems which can place them at risk of having a very low income. Problems with proving eligibility for the DSP may mean that many receive other social security benefits, which are paid on less generous terms (both in the base rate and the generosity of the ‘taper’ for any non-pension income) and have much stricter ‘compliance’ obligations attached to them. Due to the nature of their illness, they may also have problems adhering to these requirements, and face being breached and cut off from payments. This places them at risk of increased financial disadvantage.

The Project also found that people with a mental illness can be vulnerable to credit card debt and other contract-related debt. Consultations indicated that they are also vulnerable to receiving fines, particularly those who are young and homeless. These legal issues are compounded by the fact that people with a mental illness may face discrimination in seeking and maintaining employment. If unresolved, these issues can place them at risk of experiencing even greater financial disadvantage.

Housing-related legal issues, including housing-related debt and eviction from both public housing and private rental accommodation, can make people with a mental illness vulnerable to housing stress and homelessness. According to consultations, neighbourhood disputes and the recent introduction of ABAs by DOH could affect them and place them at risk of homelessness. It was reported that people with a mental illness living in both licensed and unlicensed boarding house accommodation lack privacy, contend with dangerous and unsanitary conditions, face abuse from other residents and operators and are without legislative protection against arbitrary eviction. Again, the vulnerability to homelessness generated by these legal issues is also compounded by the fact that people with a mental illness can face discrimination in accessing private rental accommodation.

In addition, the data suggests that people with a mental illness are vulnerable to a range of legal issues that are related to violence and family breakdown, such as, family law and victim of crime related legal issues. They can also face problems in retaining their children under Commonwealth family and state care and protection laws.

The fact that these legal issues may have serious financial and personal consequences if not addressed highlights the importance of accessing legal assistance and resolving these issues through the legal system. The next section will outline the barriers faced by people with a mental illness in accessing legal assistance and participating in the legal system.