Mental ill health and suicide are costing Australia up to $180 billion a year and services are failing to meet "community expectations", the Productivity Commission has found, calling for major reforms to ensure people can get the right type of help when they need it.

"Too many people still avoid treatment because of stigma, and too many people fall through the gaps in the system because the services they need are not available or suitable," Productivity Commissioner Stephen King said.

Mental ill health and suicide are a major drain on the economy, the Productivity Commission has found. Credit:Thinkstock

The draft report of the commission's mental health inquiry found lost productivity from mental ill health and suicide cost up to $18 billion a year, with the total hit to the economy "conservatively" up to $51 billion a year.

Costs associated with "diminished health and reduced life expectancy" totalled "about $130 billion".