Most people don’t think about how mental health funding works – until they actually need it. Then, suddenly, terms like “Mental Health Care Plan,” “Better Access,” and “GP referral” feel like a foreign language at the exact moment you’re least resourced to decode them. The good news: the Medicare mental health system is more straightforward than it looks. Understanding a few key rules upfront can save you time, money, and unnecessary confusion – and help you focus on what actually matters: getting support.

This guide from the team at MyLife Psychologists in Sydney walks you through everything you need to know about the Medicare mental health care plan in 2026 – from how to get one, to how your rebate works, to the timing mistakes that can cost you a session you were entitled to.

What Is a Medicare Mental Health Care Plan?

A Medicare Mental Health Care Plan (MHCP) is a document your GP prepares that gives you access to subsidised psychology sessions under Australia’s Better Access to Mental Health Care initiative. Think of it as your gateway document – it formally identifies your mental health needs and sets out a treatment approach, and it activates your Medicare rebate entitlement.

The plan itself is usually three to four pages long. It’s sometimes called a Mental Health Treatment Plan (MHTP). Both terms refer to the same thing.

One important distinction: the Mental Health Care Plan and your referral letter are two separate documents. You need both to claim a Medicare rebate for psychology sessions. Many people receive their plan but forget to ask for – or don’t realise they need – the accompanying referral. Your GP addresses the referral letter directly to a psychologist (or to “Dear Psychologist” if you haven’t chosen one yet), and your psychologist must receive this referral before your rebate can be processed.

Who Can Access a Medicare Mental Health Plan?

If you hold a valid Medicare card and are experiencing mental health difficulties, you can ask your GP for a plan and referral. Eligible individuals include Australian and New Zealand citizens, permanent residents, those applying for permanent residency, and people holding certain temporary humanitarian or bridging visas.

You don’t need to be in crisis to qualify. The Better Access scheme supports a wide range of challenges – including anxiety, depression, stress, grief, trauma, and more. If your mental health is affecting your daily life, it is worth having a conversation with your GP.

How Do I Get a Medicare Mental Health Care Plan?

The process begins with your GP. When booking your appointment, let the receptionist know you’re requesting a Mental Health Care Plan – this is important because your doctor will need at least 30 minutes to complete the plan and referral properly. A standard 10-minute GP appointment won’t be enough.

During the appointment, your GP will work through your current mental health concerns and goals, your relevant history, and a plan for treatment. It can help to jot down a few notes beforehand – what’s been difficult, how long it’s been going on, and what you’re hoping therapy might help with.

You don’t need to have a psychologist in mind before seeing your GP. An open referral addressed to “Dear Psychologist” is perfectly valid and gives you flexibility to choose who you see. If you do have a specific psychologist or practice in mind, your GP can address the referral directly to them.

A psychiatrist can also refer you to a psychologist – in this case, they provide a referral letter rather than a full Mental Health Care Plan, and this still enables you to claim Medicare rebates.

medicare mental health plan

How Many Sessions Can I Access?

Under the Medicare mental health care plan, eligible Australians can access up to 10 individually rebated psychology sessions per calendar year (1 January to 31 December). These are structured in two blocks.

Your GP will initially refer you for up to six sessions. After completing those, your psychologist will send a progress report back to your GP. To access the remaining four sessions, you need to return to your GP for a review. This isn’t a formality – it’s a Medicare requirement, and the timing matters (more on this below).

How Much Is the Medicare Rebate for a Mental Health Plan in 2026?

The Medicare rebate for mental health plan sessions depends on the type of clinician you see. Current rebate amounts under a standard Mental Health Care Plan are:

  • General Psychologist: $98.95 per session
  • Clinical Psychologist: $145.25 per session
  • Mental Health Social Worker: $87.25 per session

It’s worth noting that the rebate is not the full session fee – there will typically be a gap payment, which varies between practices. Checking fees upfront before you book is always a good idea.

If your out-of-pocket costs across the year exceed a certain threshold, you may also become eligible for the Extended Medicare Safety Net, which increases the proportion of costs Medicare covers. Your GP or psychologist can point you toward more information on this.

Beyond the Standard Plan: Other Medicare Mental Health Pathways

While most people access psychology through a standard Mental Health Care Plan, two other pathways are worth knowing about.

Chronic Disease Management Plans (CDMP) – formerly called Enhanced Primary Care Plans – provide up to five additional rebated sessions per year for people managing the mental health impact of a chronic physical health condition. The rebate per session under a CDMP is lower ($61.80), but it can be a useful option once standard sessions are exhausted.

Eating Disorder Plans (EDP) are available for people with a diagnosed eating disorder and provide access to significantly more intensive support – up to 40 rebated sessions within a 12-month period, structured across multiple referral stages. If you or someone you care about is navigating an eating disorder, speak with your GP about whether an EDP may be appropriate.

The Mistakes That Cost People Their Rebate

This is the section most other guides leave out – and it’s arguably the most important.

  1. Mistake 1: Attending your first session before getting your plan and referral. Medicare rebates cannot be backdated. If you attend a psychology session before your GP has prepared your Mental Health Care Plan and referral, you will not be able to claim a rebate for that session. Your GP also cannot retroactively date the documents. Always confirm your paperwork is in order before your first appointment.
  2. Mistake 2: Not returning to your GP between your 6th and 7th sessions. This is the most common and costly mistake. Once you’ve used the sessions included in your initial referral (usually six), you must return to your GP for a review before attending any further sessions – not after. Attending a 7th session without a new referral means you cannot claim a rebate for that appointment. Your psychologist can help you keep track of where you are in the process, but ultimately, managing your GP review timing is your responsibility.
  3. Mistake 3: Assuming sessions roll over into the next year. Unused rebates within a referral do roll over if your GP referral spans the calendar year boundary – but the maximum of 10 rebated sessions per calendar year still applies. Rebates don’t accumulate indefinitely. Any sessions already counted toward your annual maximum cannot be reclaimed the following year.
  4. Mistake 4: Forgetting to provide your psychologist with your referral letter. The Mental Health Care Plan alone is not sufficient for your psychologist to process your rebate. They must have your referral letter. If your GP gives you both documents in print, make sure you pass them on to your practice – or confirm that the GP clinic is sending them directly.

medicare mental health plan

What Medicare Doesn’t Cover

Knowing the limits of the Medicare mental health system is just as useful as knowing what it includes.

Medicare rebates under a Mental Health Care Plan apply to individual therapy sessions only. Couples counselling is not covered, even when psychological distress is clearly present. Neuropsychological assessments – including evaluations for ADHD, autism, memory, or cognitive functioning – are also not included under the Better Access scheme, though other funding options such as private health insurance or the NDIS may apply.

If you’re unsure whether your specific needs are covered, a conversation with your GP or a practice’s intake team is usually the clearest place to start.

A Note on the Medicare Mental Health Care Plan and Private Health Insurance

You cannot claim both Medicare and private health insurance for the same session – you must choose one. For most people seeing a Clinical Psychologist, the Medicare rebate under the Better Access scheme is the higher of the two options, but this depends on your specific policy. It’s worth checking with your health fund before you decide.

You’ve Already Taken the First Step

Reading this far means you’re taking your mental health seriously – and that matters. The Medicare mental health care plan exists because psychological support should be within reach for every Australian, not just those who can afford to pay full fees out of pocket. Understanding how it works puts you in the driver’s seat. Get your GP plan and referral in place before your first appointment. Return to your GP for a review between sessions six and seven. Keep track of where you are in the process. These small steps protect your entitlements and keep the focus where it belongs – on you, and on making progress.

When you’re ready to take the next step, our Care Coordinator is here to help. Book a free 15-minute call to ask questions about fees, rebates, and finding the right psychologist for.

References and Resources

Disclaimer: This article is for general informational purposes only and is not a substitute for individual psychological advice, assessment, or treatment. Reading this content does not establish a therapeutic relationship. If you have concerns about your mental health, please seek support from a registered health professional.