People with hospital insurance that does not offer full cover for mental health treatment will be able to upgrade their cover and access mental health services without having to wait two months.
Until Sunday, April 1, as a result of having either a basic or medium private hospital cover, many patients needing urgent access to mental health services have been hit with big bills.
If they opted to upgrade their policy, they were subject to a two-month waiting period.
"This will now change and it will be available straight away," federal Health Minister Greg Hunt said.
The minister said the change, outlined in the mid-year Budget review last year, would encourage younger people to take up private health insurance.
