An estimated 7.29 million Australians aged 16 to 85 have a live experience of mental illness, the National Mental Health Commissioner Allen Fels said.
Virtually every family has their own story, but these personal stories too often aren't heard, the official was quoted as saying by the ABC News.
The first of the countrywide study into mental health services also found that people with mental health problems have much higher rates of physical illness and are less likely to have meaningful jobs.
The alarming report further said that 6 per cent of Australians currently use mental health services but double that number need regular access to treatment programs.
Australia needs to adopt a coherent national approach to mental health, citing Canada and New Zealand as positive examples, the study said.