Australian businesses will be a key focus of an independent inquiry into mental health, announced by the Federal Government.

Key points: Health Minister Greg Hunt says mental health is key human, social and economic issue

Health Minister Greg Hunt says mental health is key human, social and economic issue Almost half of Australian population estimated to experience mental illness in their lifetime

Almost half of Australian population estimated to experience mental illness in their lifetime Productivity Commission will report to the government next year

The Productivity Commission will investigate the impact of mental health on the Australian economy and identify the ways workplaces can better support people living with mental health conditions.

"It's focusing on the causes and the prevalence of mental health, the ability to recognise it, and help provide treatment, support, and recovery within the workplace" Health Minister Greg Hunt said.

Nationally, more than 3,000 people took their own lives in 2017 making suicide the leading cause of death among people aged between 15-44 years.

Recent data from the Australian Bureau of Statistics showed a 9.1 per cent jump in suicide rates last year, increasing to 12.6 deaths in every 100,000 people in 2017, overtaking the World Health Organisation's global average of 10.6 in every 100,000.

The government expects to spend $4.7 billion on mental health services this year alone.

"We know that with 4 million Australians being affected by mental health conditions every year, the workplace can be an absolutely central point for identifying, for helping to provide support and for helping to provide recovery," Mr Hunt said.

"It's a key economic issue but above all else it's a key human and social issue."

The commission will be expected to recommend key priorities for the Government's long-term mental health strategy and will accept public submissions.

The 2018 national report into Mental Health and Suicide Prevention Reform estimates 45.5 per cent of the Australian population aged between 16 and 85 will experience mental illness, such as an affective, anxiety or substance use disorder, in their lifetime.

The Productivity Commission will report to the government next year.