Mental Health Care Plan in Australia

As a hypnotherapist and counsellor, one of the most common questions I receive is whether sessions can be supported under a Mental Health Care Plan. It’s a fair question. After all, mental health is health, and access to support matters. But the reality is that the Medicare-funded Mental Health Care Plan in Australia does not currently include hypnotherapists or counsellors, no matter how qualified or effective they might be.

That limitation often surprises people. Many come in assuming they’ll be eligible for a rebate, only to learn that the plan restricts who you can see and how many sessions are subsidised. While the Mental Health Care Plan can be an essential tool for accessing support, it’s important to understand what it actually offers, who it covers, and what your options are if the practitioner you’d prefer to work with isn’t included.

This blog will unpack the Mental Health Care Plan in plain terms — how it works, what it covers, and how to navigate your care if you’re drawn to modalities or professionals that fall outside its current scope.

What is a Mental Health Care Plan?

The Mental Health Care Plan, or MHCP, is a Medicare-supported initiative that helps Australians access subsidised mental health support. It’s designed to give people with a diagnosed mental health condition access to a set number of therapy sessions each year with approved mental health professionals.

It doesn’t cover all types of therapy or practitioners, but it does provide a structured way to get support if you meet certain criteria. The goal is to make mental health care more accessible and more affordable for those who need it.

Who is eligible?

To be eligible for a Mental Health Care Plan, you need to:

• Hold a valid Medicare card
• Be assessed by a GP, psychiatrist, or paediatrician
• Have a diagnosed mental health condition such as anxiety, depression, PTSD, OCD, or similar

The first step is usually a GP appointment where they assess whether you meet the criteria. If so, they’ll prepare a Mental Health Care Plan with you and refer you to a suitable mental health professional.

Keep in mind, this diagnosis becomes part of your medical record. That’s important to know up front, particularly if you have concerns around privacy, insurance, or future disclosures.

What do you get with a Mental Health Care Plan?

The MHCP gives you access to:

• Up to 10 individual sessions with a registered mental health professional per calendar year
• Up to 10 group therapy sessions (if relevant and available)

You’ll initially receive a referral for six sessions. After those, your GP will review your progress and can refer you for up to four more sessions in that same year.

These sessions are subsidised by Medicare, meaning you’ll get a rebate on the cost. Some professionals bulk bill, which means no out-of-pocket cost. Others may charge a gap fee, which you’ll need to cover yourself.

Who can you see under the plan?

This is where many people — and practitioners — hit a roadblock. The Mental Health Care Plan only covers specific kinds of professionals:

• Clinical psychologists
• Registered psychologists
• Accredited mental health social workers
• Occupational therapists with mental health accreditation

It does not cover counsellors, psychotherapists, or hypnotherapists unless they also happen to hold one of the above titles. This means that even if a counsellor is highly experienced or registered with a professional association, they won’t be eligible for Medicare rebates unless they meet the narrow Medicare requirements.

What are the limitations?

While the MHCP is a useful program, there are some clear limitations:

• Only 10 subsidised sessions per year (individual and/or group)
• Limited pool of eligible professionals
• Therapy styles tend to focus on cognitive behavioural approaches
• You need a formal diagnosis and GP referral to access the plan
• Wait times can be long, especially for psychologists

For people needing more flexible or ongoing support, or for those drawn to different therapeutic approaches, this system may feel restrictive.

What if the therapist you want to work with isn’t covered?

If you’re interested in working with a counsellor, psychotherapist, or hypnotherapist who isn’t included under the MHCP, you still have options.

Many clients choose to pay privately for sessions. While this doesn’t come with a rebate, it does open the door to working with the therapist of your choice, in a way that suits your goals and preferences.

You also have more flexibility — no diagnosis required, no session limits, and no need for GP involvement. That can feel more personal, less medical, and often a better fit for people seeking holistic or integrative approaches to their wellbeing.

It is also worth noting that most hypnotherapists and counsellors are potentially going to cost less per session than the majority of psychologists and psychiatrists.

What about the new Medicare Mental Health Centres?

In addition to the existing MHCP, the government has introduced Medicare Mental Health Centres. These centres offer:

• Free short- to medium-term mental health support
• No referral required
• Help for people with or without a Medicare card
• Care from a mix of clinicians and peer workers

These centres are being rolled out nationally and aim to reduce some of the barriers people face when trying to access mental health support.

Is the system changing?

There’s growing pressure for reform. Many organisations, including the Australian Counselling Association and Psychotherapy and Counselling Federation of Australia, are lobbying for counsellors and psychotherapists to be included in the Medicare system.

Proposals include expanding the list of eligible providers, increasing the number of sessions allowed each year, and giving people more freedom in the type of therapy they choose.

It’s not there yet — and change will take time — but these conversations are happening, and you can support that process by adding your voice. Writing to your MP, signing petitions, and supporting advocacy campaigns all help to build momentum.

At the same time, other professional organisations are currently working with government to restrict the range of qualifications that can work in private practice. This has the potential to ‘ban’ certain therapists unless they hold a bachelor level qualification. This runs the risk of reducing the amount of options people might have, and that’s a problem. Not every client is going to need the top shelf of support, and this might take away available times from those that do.

Getting the help that works for you.

The Mental Health Care Plan in Australia is a valuable tool. It helps thousands of people every year access therapy they might not otherwise afford. But it doesn’t cover everything — and it doesn’t work for everyone.

If the practitioner or approach you feel drawn to isn’t included under the plan, that doesn’t mean it’s the wrong choice. It just means you’ll need to explore other ways to access it. That might mean paying privately, asking about sliding-scale fees, or combining different types of support.

The most important thing is getting the help that works for you — in a way that feels safe, respectful, and effective. Whether that’s through the MHCP or outside of it, what matters most is that you take the step.

NOTE: This blog is accurate as of time of publishing, July 2025. Changes are inevitably going to happen over time. Please double check with your GP if you’re considering going on a Mental Health Plan.

Release Hypnosis Melbourne Hypnotherapy

Since 2015, Lawrence Akers has been working under the name Release Hypnosis offering Hypnotherapy and ACT based work to the people of Melbourne or an online service. Based on St Kilda Rd, Release Hypnosis is an easy and convenient location to get to and accessible by the ANZAC station train and tram stop. Release Hypnosis can help with a wide range of presenting issues, and I offer a free 30 minute no obligation discovery call for those who are unsure if hypnotherapy is the right way forward for them.

Book Your FREE 30 Minute Consultation With Release Hypnosis NOW!

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