Getting therapy shouldn’t feel like a luxury, but we know cost can be one of the biggest things standing between someone and the support they need.
So, does Medicare cover therapy in Australia — including online sessions? In many cases, yes. Eligible Australians may be able to access Medicare rebates for sessions with certain mental health professionals through the Better Access initiative, including eligible telehealth appointments.
If you’re trying to work out Mental Health Treatment Plans, referrals, Medicare rebates and private health insurance while also, you know, dealing with your actual mental health, things can get confusing pretty quickly.
Here’s a straightforward guide to how Medicare and online therapy work in Australia, what you may be able to claim, and what to check before booking.
Does Medicare Cover Online Therapy?
Yes, Medicare can provide a rebate for eligible online mental health treatment services in Australia. But Medicare doesn’t automatically cover every type of “online therapy” or every therapist.
Under the Australian Government’s Better Access initiative, eligible patients can receive Medicare benefits for mental health treatment with certain registered health professionals.
For online psychology sessions, you’ll generally need an eligible referral and meet the Better Access requirements. The psychologist you see must also be eligible to provide Medicare-funded services.
Telehealth appointments can make accessing support easier if you:
- Live in a regional or remote area
- Have mobility or transport challenges
- Work hours that make clinic appointments difficult
- Feel more comfortable speaking from home
- Simply prefer the flexibility of online therapy
The important bit: always check your eligibility, referral and expected rebate before your first appointment so there are no surprise costs later.
How Does a Mental Health Treatment Plan Work?
A Mental Health Treatment Plan is one pathway that can help eligible Australians access Medicare rebates for mental health treatment.
Your GP or another eligible referring practitioner will assess what’s happening for you and determine whether a Mental Health Treatment Plan and referral under Better Access are appropriate.
Since changes introduced in November 2025, Mental Health Treatment Plan preparation, referrals and ongoing care are generally linked to your MyMedicare-registered practice or your usual medical practitioner.
A typical process might look something like this:
- Speak with your GP or usual medical practitioner about your mental health and support needs.
- If appropriate, they may prepare a Mental Health Treatment Plan and refer you for eligible treatment.
- Your initial referral may cover a course of up to six individual treatment services.
- After that course, your referring practitioner can review your needs and, where appropriate, refer you for further sessions within the annual Medicare limit.
Your GP remains an important part of the process, particularly if your needs change or you require additional support.
How Many Online Therapy Sessions Does Medicare Cover?
Eligible patients can currently claim Medicare benefits for up to 10 individual mental health treatment services per calendar year under Better Access.
The calendar year runs from 1 January to 31 December.
You may initially be referred for a course of up to six sessions. If further treatment is appropriate, your referring practitioner can provide another referral, up to the annual limit.
It’s worth remembering that “10 sessions” doesn’t necessarily mean 10 completely free sessions. Medicare provides a rebate toward eligible services, and there may still be an out-of-pocket or “gap” cost depending on your psychologist’s fees.
Who Is Eligible for a Medicare Rebate for Online Therapy?
Medicare eligibility depends on your individual circumstances, your referral and the professional providing your treatment.
Generally, Better Access requires you to have an eligible referral pathway, such as a Mental Health Treatment Plan, psychiatrist assessment and management plan, or another eligible referral.
You’ll also need to see a mental health professional who can provide services under the relevant Medicare item.
For psychology specifically, this may include an eligible registered psychologist or clinical psychologist. Other eligible health professionals can also provide certain Better Access services, but not every counsellor, psychotherapist or therapist is Medicare-eligible.
That distinction matters.
At The Indigo Project, we have psychologists, counsellors, psychotherapists and therapists with different qualifications and fee structures, so if claiming a Medicare rebate is important to you, make sure you select a Medicare-eligible psychologist when booking.
How Much Is the Medicare Rebate for an Online Psychologist?
The Medicare rebate depends on the type of psychologist, the service provided and the relevant MBS item.
As at September 2026, for an eligible individual video consultation lasting at least 50 minutes:
- Eligible clinical psychologist: Medicare benefit of $149.05
- Eligible psychologist: Medicare benefit of $101.55
These amounts can change when the Medicare Benefits Schedule is updated, so it’s always worth confirming the current rebate before your appointment.
Psychologists also set their own fees, which means the Medicare rebate may not cover the full cost of your session.
Before booking, ask:
- What is the full session fee?
- Is this psychologist Medicare-eligible?
- What rebate applies to my session?
- What will my estimated out-of-pocket cost be?
A little admin upfront can save a lot of “wait, why did Medicare only refund that much?” confusion later.
Medicare vs Private-Funded Psychological Counselling
Not everyone accesses therapy through Medicare. You may choose private-funded psychological counselling instead, particularly if you don’t have a Mental Health Treatment Plan, have already reached your Medicare session limit, or simply want to book without using a Medicare referral.
With private-funded therapy, you generally pay the provider’s session fee yourself.
Depending on your policy, private health insurance extras cover may contribute toward eligible psychology or counselling services.
Every insurer and policy is different, so check:
- Does my extras cover include psychology or counselling?
- Does it cover telehealth or online sessions?
- How much can I claim per appointment?
- Is there an annual limit?
- Does my therapist need to be recognised by the insurer?
You generally can’t claim a Medicare benefit and a private health insurance benefit for the same treatment service.
However, private cover may be useful for additional eligible sessions once you’ve reached your Medicare-funded limit.
How to Find a Medicare-Eligible Online Psychologist
Finding someone you actually want to talk to is important. So is knowing what your session is going to cost.
Here’s a simple starting point:
1. Speak with your GP
If you want to access Medicare-funded psychological treatment, speak with your GP or usual medical practitioner about whether Better Access is appropriate for you.
2. Check the psychologist is Medicare-eligible
Not every therapist at every practice can provide Medicare-rebatable sessions.
If Medicare is part of your plan, make sure you’re booking an eligible psychologist and confirm that your referral is valid for the service.
3. Ask about fees before you book
Ask about the total fee, likely Medicare rebate and estimated gap payment.
The Indigo Matchmaker can also help you find a therapist who gets what you’re going through.
Can I Use Medicare for Online Therapy Anywhere in Australia?
Eligible individual Better Access telehealth services are available across Australia where telehealth is safe and clinically appropriate.
That means online psychological support can be an option whether you’re in Sydney, Melbourne, Brisbane, Perth, Adelaide, Canberra, Hobart, Darwin or a regional community.
For people who don’t live near the right therapist — or simply don’t fancy adding a cross-city commute to an already-full day — online therapy can open up a much wider choice of support.
At The Indigo Project, our online therapists support people across Australia from wherever they feel most comfortable.
What Happens After My Medicare Sessions Run Out?
Reaching the annual Better Access limit doesn’t mean your support suddenly has to stop.
If you need ongoing treatment, speak with your GP and therapist about what makes sense for you.
Depending on your circumstances, options could include:
- Continuing therapy privately
- Using eligible private health insurance benefits
- Exploring other government-funded mental health services
- Accessing community or Primary Health Network services
- Discussing other appropriate support options with your GP
The right next step will depend on your needs, finances and the type of care that’s appropriate for you.
Is Medicare-Supported Online Therapy Right for You?
For many Australians, Medicare can make psychological treatment more affordable, while online sessions can make it easier to fit support around real life.
But there’s no single “right” way to do therapy.
You might use a Mental Health Treatment Plan. You might access private-funded counselling. You might use private health insurance. What matters is finding an option that is clinically appropriate, financially manageable and feels right for you.
At The Indigo Project, we can help you connect with online psychologists and therapists across Australia.
If claiming Medicare is important to you, make sure you choose a Medicare-eligible psychologist and have the appropriate referral in place before your session.
At The Indigo Project, we connect people with Medicare-eligible therapists who offer online sessions designed to suit their needs. If you’re unsure what’s covered or how to find the right therapist, we’re here to help.
