The actor will be playing a cheating husband who drives his wife to a nervous breakdown, forcing him to hire a nanny for his five young children, Variety reports.
Toni Colette, who starred in Muriel's Wedding, will take on the role of the nanny in Mental.
Mental marks Hogan's return to Australia after directing Confessions of a Shopaholic and My Best Friend's Wedding in Hollywood.
The director told the site that Colette's central character Shaz is "hilarious, outrageous, dangerous, courageous, inspiring, heart-breaking and totally, totally mad".
He described the film as "a comedy laced with pain and brimming with flawed but lovable characters".
Schreiber, who most recently starred in Salt, will not be reprising his role in Wolverine.
He played Victor Creed/Sabretooth in the original 2009 film X-Men Origins: Wolverine.
The actor is also currently attached to domestic drama Jack and Movie 43.
Watch the trailer for Muriel's Wedding below: