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Mental health an afterthought in Federal Budget

Australia’s peak psychology body, the Australian Psychological Society (APS), is dismayed at the lack of genuine investment in mental health in tonight’s Federal Budget.

The Government has again failed to deliver the significant new investment, planning and commitment needed to improve access to psychological care, strengthen prevention, and meet the mental health needs of Australians.

APS President Dr Kelly Gough said despite some welcome announcements, such as Department of Veterans’ Affairs (DVA) fees for psychologists increasing by almost 60%, Australians today need greater access to mental health care than ever before, and the Government simply has not delivered.

“The DVA fee increase is an important step towards better recognition of the value of psychological care for veterans and their families, and the expertise of psychologists who provide it, however it’s not enough.

“This Budget is a disappointing outcome for Australians and for the psychology workforce that continues to operate under immense pressure.”

Dr Gough said Australians were struggling to access mental health care due to cost and workforce shortages.

"We had hoped the Government would recognise the need to improve access to psychology services by increasing the Medicare rebate for patients, while also providing bulk billing incentives for psychologists in order to support the community's mental health, especially in rural and remote locations.

“We also remain concerned about the impact of proposed NDIS reforms, including the introduction of Thriving Kids. We will continue to raise awareness around the issues facing people with disability and the psychologists who support them,” said Dr Gough.

“In our Pre-Budget Submission 2026-27, we've called for innovative, yet practical and future-facing investments that would genuinely strengthen the psychology workforce and improve access to psychological care,” said Dr Gough.

“We put forward 10 costed, targeted, fiscally sustainable solutions that would allow Government to achieve positive outcomes for the Australian community,” Dr Gough highlighted.

The initiatives focus on:

1. Developing a National Psychology Workforce Strategy
2. Extending Commonwealth Prac Payments to postgraduate psychology students
3. Collaborative benchmarking of AI and Digital Mental Health Services
4. Sustaining and scaling the APS Disaster Response Network (DRN)
5. Increasing and indexing Medicare rebates for psychology services
6. Enabling psychologists to determine treatment length
7. Streamlining GP mental health appointments
8. Improving youth access to psychology services
9. Extending the flexibility of family and carer participation sessions under Better Access, and;
10. Restructuring MBS items related to the Assessment of Complex Neurodevelopmental Disorders.

“Though tonight’s Budget outcome is disappointing, our work supporting the mental health and wellbeing of Australians will continue,” Dr Gough concluded.


~ENDS~

For more information, or to arrange an interview call the APS Media team on 03 8662 3358 / 0435 896 444, or email.


The APS is the largest professional organisation for psychologists in Australia, representing close to 25,000 members. The APS is committed to advancing psychology as a discipline and profession. It spreads the message that psychologists make a difference to people’s lives, through improving psychological knowledge and community wellbeing.