The chapter examines Australia’s treatment of asylum seekers, linking it to unresolved national issues stemming from colonisation. It argues that the nation’s failure to mourn its colonial past has led to a state of collective melancholia, manifesting in policies that dehumanise vulnerable populations, notably asylum seekers. Drawing on Freudian concepts, the author suggests that this melancholia results in denial and splitting, preventing genuine reconciliation with First Nations peoples and contributing to broader societal issues, including environmental neglect and institutional distrust. The chapter calls for a national process of mourning to confront historical truths, dismantle myths like terra nullius, and foster empathy and reparation. It highlights the Uluru Statement from the Heart as a pivotal opportunity for Australia to engage in truth-telling and treaty-making, offering a pathway out of its melancholic state. The author emphasises that political action serves as a mental health strategy, both individually and collectively, and that embracing mourning can liberate the energy necessary for the nation to live fully and ethically. It concludes by urging Australia to face its past actions, suggesting that such acknowledgement is essential for national healing and the humane treatment of all individuals within its borders.