The most comprehensive attempt to quantify the financial cost of mental illness and suicide in Australia has come back with an astounding tally — $220 billion a year.

In 2018, the Government asked the Productivity Commission to examine the effect of mental health on economic participation and productivity.

Its final report released today documented long-standing problems in the sector, recommending changes that would save the Government about $20 billion a year.

A separate report by the Government's suicide adviser also recommended the establishment of a National Office for Suicide Prevention, and long-term research strategy for suicide prevention.

The Government is yet to formally respond to either document but the Prime Minister addressed the massive financial toll in a speech today, saying it took into account the impact on work, health and life expectancy.

"That's more than a tenth of Australia's entire economic production in 2019," Scott Morrison said.

"These costs are borne by those people with poor mental health and people who care, and by governments, employers, insurers and the wider community.

"It's the cost that doesn't discriminate. It falls right across the board. The cost of lost opportunity and lower living standards."

The report tells of a challenge facing a near majority of Australians.

"Almost half of all Australian adults have met the diagnostic criteria for a mental illness at some point in their lives," the report said.

"And almost one in five Australians have met the criteria in a given year.

"These numbers are likely to rise, at least in the short term, given the multiple crises faced by the Australian community in 2020.

"And while mental ill-health affects people of all ages, about three quarters of adults with mental illness first experience mental ill-health before the age of 25 years."

Mr Morrison said it was important to immediately address concerns raised in the two reports about the uncoordinated and complex way the mental health system works.

"People who need help and their families are left to try and find and coordinate their own care without clear guidance about what is available, affordable and appropriate," he said.

"This happens at a point in their lives when they are most vulnerable and they will be finding it most difficult to try to access the services. The services that are there. Well intentioned, well supported, well funded, but difficult to access."

Labor warns of mental health 'epidemic'

Shadow Health Minister Chris Bowen said the nation was facing a "mental ill-health epidemic".

He pointed to the finding in the commission's report that half the population would experience mental illness over their lifetime.

"This is an epidemic. It's an epidemic needing urgent attention. Needing a revolution, not an evolution," he said.

Mr Bowen said the Government should have released the Productivity Commission report sooner.

"The Government received the report five month ago. That's five months of missed opportunities," he said.