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The combined association of individuals’ psychological distress, mental health and smoking status with household expenditure

Published online by Cambridge University Press:  06 March 2026

Anita Lal*
Affiliation:
Deakin Health Economics, Institute for Health Transformation, Faculty of Health, Deakin University, Geelong, Australia
Shiva Ganjali
Affiliation:
IMPACT—the Institute for Mental and Physical Health and Clinical Translation, Deakin University, Geelong, Australia
Nikki McCaffrey
Affiliation:
Deakin Health Economics, Institute for Health Transformation, Faculty of Health, Deakin University, Geelong, Australia Cancer Council Victoria, Melbourne, Australia
Catherine Segan
Affiliation:
Cancer Council Victoria, Melbourne, Australia Centre for Health Policy, School of Population and Global Health, University of Melbourne, Melbourne, Australia
Michelle Scollo
Affiliation:
Cancer Council Victoria, Melbourne, Australia
Mohammadreza Mohebbi
Affiliation:
Faculty of Health, Deakin University, Geelong, Australia
*
Correspondence: Anita Lal. Email: anita.lal@deakin.edu.au
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Abstract

Background

Adults with mental illness have higher smoking prevalence and face greater financial burdens from smoking compared with the general population.

Aims

This study explores how individuals’ psychological distress and smoking status are jointly associated with household expenditure patterns in Australia.

Method

Daily smokers and ex-smokers were compared using the Household, Income and Labour Dynamics in Australia Survey over three waves. Psychological distress was assessed with the Kessler Psychological Distress Scale (K10) and the mental health domain of Medical Outcomes Study Short-Form General Health Survey (SF-36 MHD). Household expenditure categories included alcohol, clothing, education, fuel, general insurance, medicines, health practitioners, groceries, meals eaten out, internet, utilities, public transport and rent. Regression models using the generalised estimating equation technique compared expenditure data, controlling for age, gender, household composition, socioeconomic position, education level and wave of data collection.

Results

Smokers and ex-smokers showed significant differences in expenditure across K10 psychological distress levels. At low and moderate distress levels, smokers spent more on alcohol and rent and less on insurance, health practitioners, meals out and medicines. At high distress levels, only education expenditure was significantly lower for smokers. Across SF-36 MHD tertiles, smokers spent less on education, insurance and medicine, but more on alcohol, especially at lower and moderate distress levels.

Conclusions

Smoking cessation for those with moderate psychological distress may be associated with a reallocation of spending, benefiting both households and their local communities. Targeted interventions addressing smoking cessation and mental health are crucial for reducing financial and health inequities.

Information

Type
Paper
Creative Commons
Creative Common License - CCCreative Common License - BY
This is an Open Access article, distributed under the terms of the Creative Commons Attribution licence (https://creativecommons.org/licenses/by/4.0/), which permits unrestricted re-use, distribution and reproduction, provided the original article is properly cited.
Copyright
© The Author(s), 2026. Published by Cambridge University Press on behalf of Royal College of Psychiatrists
Figure 0

Table 1 Number of participants in each wave

Figure 1

Table 2 Participants demographics in wave 13 (T1) for cigarette-only smokers

Figure 2

Table 3 Adjusted mean expenditure (AU$) on various household items by K10 and SF-36 MHD levels

Figure 3

Table 4 Joint effect of smoking status (cigarette-only smokers versus ex-smokers) and psychological distress (K10) and mental health (SF-36 MHD) on mean expenditure (AU$) per annum

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