Prime Minister Scott Morrison said the report was"most comprehensive report of its kind"ever produced in Australia,and the government would develop a response by the May 2021 budget.
"It's not easy reading,but despite our efforts,people are still falling through the cracks,"he said when releasing the report on Monday.
Speaking in Melbourne,the Prime Minister committed to creating a mental health system that was"person driven".
One in five people experience mental illness every year,and half of all Australians will be diagnosed with a mental health condition over their lifetime.
"In 2018,2.4,million Australians aged 18 and older experienced high or very high levels of psychological distress,"Mr Morrison said.
Every year 65,000 Australians attempt suicide,and last year 3300 died by suicide,he said. Suicide remains the leading cause of death in young people.
This data was from before the COVID-19 pandemic,which has had a"significant impact"on mental health around the country.