Why is therapy so expensive in Australia and what can you do about the cost?

Cost is one of the most common reasons people put off seeing a psychologist, and it's a completely understandable one. Psychology sessions in Australia typically range from $180 to $300 or more, which adds up quickly, and for a lot of people the question of whether they can afford it is the first thing they're trying to work out.

This is a straightforward breakdown of why sessions cost what they do, and what options are available to reduce what you pay out of pocket.

Why psychology sessions cost what they do

Registered psychologists in Australia complete a minimum of six years of university training, followed by ongoing supervision, professional development, and annual registration with AHPRA. Running a private practice also involves real overhead: room hire, practice management software, insurance, and administration costs that aren't always visible from the outside.

The Australian Psychological Society recommends a fee of $311 per session as a guideline for registered psychologists (as of 2025). Many psychologists charge less than this, particularly earlier in their careers or in areas with a lower cost of living. Some charge more. It's also worth knowing that unlike GPs, psychologists in private practice generally don't bulk bill, which means the Medicare rebate reduces but doesn't eliminate your out-of-pocket cost.

The main ways to reduce the cost

1. Use your Medicare rebate

If you have a valid Mental Health Treatment Plan and referral from your GP, you're entitled to a Medicare rebate for up to 10 individual psychology sessions per calendar year. The current rebate for a session with a registered psychologist is $98.95 under MBS item 80110 (as of July 2025). Check the MBS Online website for the most current rate.

How practices handle the claiming process varies. Some process the rebate directly, meaning you pay only the gap at the time of your appointment. Others charge the full fee upfront and you claim through the Medicare app, myGov, or a Medicare service centre, with the rebate typically deposited within 24 hours.

The out-of-pocket cost depends on your psychologist's fee.

For example: at a fee of $230, the gap after the Medicare rebate is $131.05 per session.

2. Use private health insurance

Some private health insurance policies include cover for psychology sessions under extras. The rebate amount varies significantly between insurers and policies, so it's worth calling your insurer directly to ask about psychology cover, the rebate amount per session, and any annual limits.

One thing worth knowing: Medicare and private health insurance can't both be claimed for the same session. If you're using your Medicare rebate, you can't also claim from your private health fund for that session. Once your Medicare sessions are exhausted for the year, you may then be able to claim through private health for any additional sessions.

3. Ask about reduced fees

Some psychologists offer reduced fees for people experiencing financial hardship, or keep a small number of lower-fee spots available. It's reasonable to ask when you make an initial enquiry. University training clinics, where sessions are provided by supervised psychology students, can also be a lower-cost option worth exploring.

4. Consider telehealth

Telehealth psychology sessions are eligible for the same Medicare rebates as in-person sessions. Accessing a psychologist via telehealth removes any geographic barrier and can sometimes make it easier to find someone with availability sooner.

5. Community mental health services

For people experiencing significant financial hardship or more complex mental health difficulties, community mental health services may be available through the public system at no cost. Access is typically via a GP referral and may involve a waitlist depending on your area.

A note on cost versus fit

The lowest-fee option isn't always the most cost-effective in the long run. The quality of the relationship between you and your psychologist is one of the strongest predictors of good outcomes in the research on therapy. A psychologist who is a good fit for you, even at a higher fee, may achieve more in fewer sessions than a lower-cost option that isn't well-suited to what you're bringing.

It's worth factoring that in alongside the numbers.

At Ember Psychology, sessions are $230. Medicare rebates are available with a valid GP referral, bringing the out-of-pocket cost to $131.05 per session. Sessions are available in person in Bondi Junction and via telehealth across Australia.

This article is for general educational purposes only and is not a substitute for professional psychological advice. If you're struggling, please reach out to your GP or a registered psychologist.