This report provides an overview of mental health in Australia, including definitions, an outline of the various mental health conditions, & statistics & trends. A more detailed profile of depression follows & includes: definitions & diagnosis from a lifespan perspective; its differential effects on particular population groups; & issues related to the prevention, management, & treatment of depression. Examples of Australian initiatives are described. Potential opportunities & directions are provided for future action. An appendix presents the first set of priority depression indicators against which future reports will be able to determine progress in improving the population’s mental health.