Watch FIFA World Cup 2026™

LIVE, FREE and EXCLUSIVE starting June 12 2026

Medicare-subsidised mental health sessions are about to be halved. Psychologists say it's the wrong move.

The federal health minister is being called on to reconsider the planned end to funding for additional subsidised mental health appointments.

Medicare healthcare cards with coins on top of them
The federal government is set to cut Medicare subsidies for psychology sessions in half from 1 January. Source: AAP

Key Points

  • Cuts to mental health subsidies are due to come into effect on 1 January.
  • The number of Medicare subsidised psychology sessions will drop from 20 to 10.
  • Psychologists are urging the federal government to reverse the cuts.

Psychologists are urging the federal government to reverse a decision to cut subsidised mental health sessions in half.

The changes are due to come into place on 1 January and would reduce the number of Medicare-subsidised psychology sessions from 20 to 10.

During the COVID-19 pandemic, the former Coalition government allocated funding for the additional appointments to help address the mental health effects of lockdowns.

The Labor government has decided not to renew the funding because Health Minister Mark Butler said the scheme had extended waitlists and become a barrier to more people being able to access mental health treatment.

News that makes sense

Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

But two leading psychologist groups said positive findings from the government's review of the scheme had been ignored.

The Institute of Clinical Psychologists (ICP) and Australian Clinical Psychology Association (ACPA) called on Mr Butler to reconsider his decision.

ACPA president Professor Caroline Hunt said the government's review had found most mental health conditions needed more than 10 psychological sessions to be treated.

Professor Hunt warned psychologists would have to turn away people with moderate and severe conditions.

"Delivering only half a treatment would be unethical, likely resulting in relapse or a worsening of the condition," she said.

"We believe halving access to quality psychological interventions when we do not have alternative options in place is a mistake."

Labor backbencher Josh Burns spoke out against the decision when it was announced earlier in December.

Mr Burns said the answer to managing access to mental health services was not to reduce support for people who need it.

ICP president Dr Marjorie Collins agreed and said evidence showed reducing rebated sessions would lead to poorer community health outcomes

The government plans to overhaul mental health care in Australia but the two groups said continuity of patient care was essential while that was underway.


2 min read

Published

Source: AAP




Share this with family and friends


Get SBS News straight to your inbox

Sign up now for daily news from Australia and around the world. You can also subscribe to Insight's weekly newsletter for in-depth features and first-person stories.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Follow SBS News

Download our apps

Listen to our podcasts

Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS

SBS World News

Take a global view with Australia's most comprehensive world news service

Stream now

Watch the latest news videos from Australia and across the world