Background: The COVID-19 pandemic has led to calls for the expansion of services such as headspace and equivalent services for adults to meet expected increases in psychological morbidity and suicide. As a result, the Federal government committed an additional A$24 million to reduce waiting times at headspace centres because of potential increased demand. Objectives: To investigate the evidence for both increased suicide rates and demand for mental health services resulting from the pandemic. Methods: A review of the relevant evidence from population health surveys, emergency department (ED) presentations, outpatient visits and data on suicide prevalence. Findings: Data on the mental health effects of COVID-19 have been mixed and show variation by reporting method. In some studies, self-reported symptoms show increases in comparison with population norms or pre-pandemic assessments, especially for anxiety. However, this is not a universal finding. Furthermore, increases in self-reported symptoms are often self-limiting and due to difficulties with finances or living conditions rather than access to service. There are increased ED presentations and Medicare-funded outpatient attendances, but the latter may partly reflect increased accessibility through additional telehealth items. A review of suicide data from 21 countries, including Australia, found no increase in rates. Conclusion: It is possible that increased psychiatric morbidity may take longer to appear especially as financial supports are withdrawn and long-term neurocognitive and other direct effects occur. However, evidence to date suggests that financial support and practical aid may be the most effective way to minimise psychological distress.