In its 2026-27 Pre-Budget Submission, the APS is calling for:
- National psychology workforce strategy
- Psychology Commonwealth Prac Payment
- Collaborative benchmarking of AI and Digital Mental Health Services
- APS Disaster Response Network (DRN)
- Medicare rebates and indexation
- Psychologist-determined support
- Streamlined GP mental health appointments
- Youth access (Medicare safety net)
- Family and carer participation
- Assessment of Complex
- Neurodevelopmental Disorders and Foundational Supports
From a stronger workforce development strategy to greater protections around AI and digital health tools. Here are the key inclusions the psychology profession wants to see in the upcoming Budget.
As the 2026-27 Federal Budget approaches, psychologists across Australia are watching closely and calling for solutions that adequately address the most pertinent issues impacting both the profession and the community.
These include rising client distress driven by cost-of-living pressures as well as climate-related disasters and other collective trauma events. In addition, there is mounting frustration with the administrative burden associated with service provision, and the continued underfunding of psychological care for the community.
The APS's 2026-27 Pre-Budget Submission reflects this reality. It outlines what psychologists know is needed to deliver safe, effective and equitable psychology services – now and into the future.
“The psychology profession is clear-eyed about the pressures facing Australians and the limitations of the systems we’re working within,” says Dr Kelly Gough, APS President.
“What’s needed are practical, evidence-based reforms that allow psychologists to work to the full scope of their training and deliver care where it has the greatest impact.”
Below are 10 priorities the psychology profession wants to see addressed in this year’s Budget – grounded in members’ lived experience, clinical evidence and the realities of delivering psychology services across diverse communities.
1. A National Psychology Workforce Strategy that reflects the realities of practice
Australia continues to face significant and persistent unmet demand for psychology services. While there has been some growth in the psychology workforce, it remains inadequate and maldistributed leaving many Australians experiencing long wait times, high out-of-pocket costs and limited access to care – particularly in public services and in regional, rural and remote communities.
This makes clear that workforce challenges are not simply a matter of headcount. They reflect broader system and funding settings that shape how, where and to what extent psychologists can participate in service delivery.
The APS is calling for a dedicated, evidence-based National Psychology Workforce Strategy that goes beyond entry pathways and training reform, and addresses participation, retention and sustainability across the full career lifecycle. This requires actionable, evidence-based advice to the Government on how to equip, sustain and extend the psychology workforce across Australia.
“A psychology-specific workforce strategy is essential to ensure workforce capacity meets the areas of greatest need,” says Dr Zena Burgess, APS CEO. “Without it, we continue to rely on blunt instruments that don’t reflect how the profession actually operates.”
Dr Gough adds :“A national psychology workforce strategy would have tangible benefits. This includes greater service capacity, stronger attraction and retention of psychologists, and better use of psychologists’ skills. Just as importantly, it improves the return on public investment in psychology training and supervision, while strengthening the workforce data needed for smarter, long-term planning.”
To read the full details of this initiative, click here.
2. Paid placements to ensure equitable access to psychology training
Mandatory placements are a cornerstone of psychology training, but for many postgraduate students they come at significant personal cost.
Hundreds of unpaid placement hours, supervision fees and lost income create barriers that disproportionately affect students from lower socioeconomic backgrounds, limiting who can afford to enter and complete psychology training.
Psychologists are calling for the Commonwealth Prac Payment to be extended to postgraduate psychology students, including additional loadings for rural and remote placements. This would reduce financial strain during training, strengthen the future workforce pipeline and improve equity of access to the profession.
“Becoming a psychologist shouldn’t depend on your ability to absorb unpaid work,” says Dr Burgess. “If we want a diverse and sustainable workforce, we need to support students through training.”
“Removing financial barriers during training is critical to building a sustainable psychology workforce," she says. "Supporting students through placements strengthens the future pipeline, improves equity of access to the profession and increases the likelihood that psychologists will train and stay in rural and remote communities where demand is highest.”
To read the full details of this initiative, click here.
3. Clear guardrails for AI and digital mental health services
Digital mental health tools and AI-based services are expanding rapidly, often faster than the evidence base needed to assess their safety, effectiveness and ethical use.
While these tools can greatly improve access, the psychology profession and the APS are increasingly concerned about potential unintended consequences if they are not carefully evaluated and integrated into care.
“With the current cost of living crisis, Australians are finding it harder than ever to access vital mental health services and we know the popularity of AI and Digital Mental Health Services (DMHS)is growing," says Dr Gough.
“However, there are significant gaps in our collective understanding about the use, experiences and consequences of AI by Australians and the potential risks involved.
“Digital and AI-based mental health solutions that are not integrated with models of care based in human relationships and experience create serious concerns for society.
“We urgently need psychology-informed solutions which benefit clients, health professionals, policy makers and the Australian community."
The APS is calling for collaborative benchmarking and evaluation of AI and DMHS to ensure they are reliable, safe and appropriately integrated into human-centred models of care.
To read the full details of this initiative, click here.
4. Sustained investment in the APS Disaster Response Network
Climate related disasters and collective trauma events are placing ongoing psychological strain on communities and the workforces that support them.
Yet psychological support for workers is often provided in the response phase immediately after an event.
The APS Disaster Response Network has shown the value of coordinated, psychologist-led support for the diverse frontline workforces who sustain Australia’s preparation, response and recovery efforts in their communities.
The DRN model delivers evidence-informed, psychologist-led wellbeing services for paid and volunteer workers across the full disaster lifecycle, including proactive wellbeing checks, group psychoeducation, and in-person deployments to workplaces and event-affected sites.
Psychologists want this model sustained and scaled, recognising that enhancing the preparedness, response and recovery capacity of all community-facing workers enables them to better anticipate, withstand, and recover from the psychological impacts associated with their roles and responsibilities across the disaster cycle.
“Psychological preparedness is an essential part of disaster readiness,” says Dr Burgess. “It protects both communities and the people supporting them.”
The APS is calling on the Government's support to sustain and scale its Disaster Response Network, which, in 2025 alone, provided 1,231 wellbeing services to support the frontline workers responding to climate-related and collective trauma events.
To read the full details of this initiative, click here.
5. Medicare rebates that reflect the true cost of care
Affordability is now the leading barrier to accessing psychology services.
Medicare rebates have failed to keep pace with inflation and the real costs of delivering care, leaving clients with growing out-of-pocket expenses and psychologists absorbing unsustainable financial pressure.
The profession is calling for increased Medicare rebates for psychology services, alongside annual indexation in line with CPI, to protect access to care and sustain psychologist participation in the Better Access initiative.
“When rebates fall behind reality, access suffers,” says Dr Burgess. “Indexation is fundamental to a viable system.”
Dr Gough adds: “This would improve affordability and access to psychological services for low-income, rural and remote Australians by reducing out-of-pocket costs, while also supporting workforce participation by keeping more psychologists engaged in Better Access service delivery.
"It would help ensure the long-term sustainability of services by aligning rebate values with the real cost of delivery, and ease pressure on GPs, emergency departments and crisis services by enabling earlier access to psychological care.”
To read the full details of this initiative, click here.
“We urgently need psychology-informed solutions which benefit clients, health professionals, policy makers and the Australian community." – Dr Kelly Gough, APS President
6. Treatment length determined by psychologists, not arbitrary caps
Evidence-based psychological care does not follow a one-size-fits-all model. While brief interventions are effective for some people, those with complex or high-impact conditions often require longer-term support.
Psychologists are calling for the ability to determine treatment length within defined parameters under Better Access, so funded care aligns with clinical judgement and evidence.
“Effective treatment is about outcomes, not session counting,” says Dr Burgess.
“Aligning treatment length with clinical evidence and individual need improves outcomes, reduces relapse and recurrence, and lifts overall system efficiency by lowering reliance on GPs and acute services.
"Removing arbitrary session caps also promotes more equitable outcomes for people with complex needs, while supporting workforce sustainability by allowing psychologists to practise in line with evidence-based standards.”
To read the full details of this initiative, click here.
7. Streamlined GP mental health appointments
Mandatory mid-treatment GP reviews unnecessarily increase the cost of seeking help, cause delays and add to the administrative burden for clients, GPs and psychologists alike, often without clinical benefit.
The APS is calling on the Government to streamline GP mental health appointments so reviews occur when clinically meaningful – at the end of treatment or when session limits are reached – while preserving collaboration where needed.
“This is about removing friction from the system, not removing safeguards,” says Dr Gough.
Dr Burgess adds: “Removing unnecessary GP referral and review requirements would improve treatment continuity, reduce out-of-pocket costs for clients, and ease pressure on GP practices.
"It would also cut administrative burden for clinicians, eliminate clinically unnecessary consultations, reduce Medicare expenditure and better align review processes with the Better Access Evaluation’s call for more flexible, needs-based care.”
To read the full details of this initiative, click here.
8. A Medicare safety net that genuinely supports young people
Young Australians experience some of the highest levels of psychological distress, yet face growing out-of-pocket costs for care. Many delay or forgo treatment at a critical developmental stage, increasing the risk of longer-term mental health challenges.
The APS is calling for a $0 Medicare safety net threshold for young people accessing Better Access psychology services, ensuring cost is never a barrier to early intervention.
“If we want to prevent lifelong mental health challenges, we have to remove financial barriers early,” says Dr Gough.
“Early access to psychological care in childhood supports better long-term mental health, improves future productivity and earning potential, and helps avoid higher downstream health costs, while increasing equity in access to essential services.”
To read the full details of this initiative, click here.
9. Family and carer participation that reflects best practice
Family and carers play a crucial role in supporting children and young people’s mental health, yet current Medicare settings significantly limit their involvement.
The APS is calling for greater flexibility and increased allocation of family and carer participation sessions under Better Access, to better support family-inclusive and parent-directed interventions where clinically appropriate.
“Strengthening communication and shared understanding between children, their support networks and clinicians improves engagement, continuity of care and treatment outcomes, while enabling earlier intervention and more efficient use of existing sessions through family-inclusive practice," says Dr Gough.
To read the full details of this initiative, click here.
10. Better access to neurodevelopmental assessment and foundational supports
Comprehensive assessment of complex neurodevelopmental disorders is essential for early intervention, yet current Medicare arrangements create delays, financial barriers and interruptions to valid assessment processes.
The APS is calling for MBS items to be redesigned to support uninterrupted, psychology-led assessment, appropriate rebates and alignment with Foundational Supports reforms, improving access for families across Australia.
To read the full details of this initiative, click here.
A budget grounded in professional reality
Together, these 10 Budget priorities reflect what psychologists know is needed to deliver effective, equitable care - addressing both critical short-term pressures while building future resilience for both the profession and the Australian community.
“This submission reflects the lived reality of psychological practice across Australia,” says Dr Burgess. “It’s about enabling psychologists to do what they’re trained to do, in a system that supports good care rather than getting in the way.”
To learn more about the APS Pre-Budget Submission, access the full document here.