Medicare rebates are financial contributions provided by the Australian Government to help cover the cost of various health services, including visits to general practitioners (GPs), medical specialists, and allied health professionals like psychologists. These rebates are part of the Medicare Benefits Schedule (MBS), which lists the medical services subsidised by the government. The rebate amount is based on a set fee for each service, known as the MBS fee. For example, Medicare typically covers 100% of the MBS fee for GP consultations, 85% for other out-of-hospital services, and 75% for in-hospital services as a public patient. ​

It's important to note that healthcare providers may charge more than the MBS fee, resulting in an out-of-pocket expense for the patient, commonly referred to as the "gap." However, some providers offer bulk billing, where they accept the Medicare rebate as full payment, meaning no additional cost to the patient. ​

To claim a Medicare rebate, patients can either have their provider submit the claim directly to Medicare (common with bulk billing) or submit the claim themselves through various methods, including online via myGov, by mail, or in person at a Medicare Service Centre. ​

Medicare rebates play a crucial role in making healthcare more affordable and accessible for Australians, ensuring that cost is less of a barrier to receiving necessary medical care.​

To access Medicare rebates for psychology services, you need to obtain a Mental Health Treatment Plan from your General Practitioner (GP), psychiatrist, or paediatrician. This plan outlines your mental health needs and the recommended treatment approach. Once you have this plan, you can be referred to a qualified mental health professional for therapy sessions.​

Medicare provides rebates for up to 10 individual and 10 group therapy sessions per calendar year. Initially, your GP can refer you for up to six sessions, after which a review is conducted to determine if additional sessions are necessary. The rebate amount varies depending on the type of psychologist you see. A Registered Psychologist has a rebate of approximatly $96.65 per session and a Clinical Psychologist has a rebate of approximatly $141.85 per session(This is accurate as of April 2025, at the time of reading this may have potentially changed). It's important to note that these rebates may not cover the full cost of the session, and you may be required to pay the difference, known as the "gap" fee. However, some practitioners offer bulk billing, which means they accept the Medicare rebate as full payment, resulting in no out-of-pocket expense for you.​

So what is a Mental Health Treatment Plan?

​A Mental Health Treatment Plan (also known as a Mental Health Care Plan) is a structured plan developed collaboratively between you and your General Practitioner (GP) to manage and improve your mental health. It's designed to provide you with access to subsidised mental health services under Medicare, making psychological support more affordable and accessible.​

A Mental Health Treatment Plan outlines your mental health concerns, sets specific goals, and details the support services you may need. This plan enables you to access Medicare rebates for up to 10 individual and 10 group therapy sessions with eligible mental health professionals each calendar year. These professionals can include psychologists, occupational therapists, and social workers.

How to obtain a Mental Health Treatment Plan

  1. Book an Appointment with Your GP. It is recommended to schedule a longer consultation with your GP to discuss your mental health concerns. It will also be helpful to inform the receptionist that the appointment is for a Mental Health Treatment Plan to ensure adequate time is allocated. ​
  2. During the appointment, your GP will assess your mental health by asking questions about your emotional well-being, symptoms, and how these affect your daily life. They may use questionnaires or screening tools to aid in the assessment. ​
  3. If your GP determines that you would benefit from further support, they will work with you to create a Mental Health Treatment Plan. This plan will outline your treatment goals and the types of support services recommended.​
  4. Your GP will provide you with a referral to an appropriate mental health professional, such as a psychologist or counsellor, who can deliver the services outlined in your plan. Initially, you may be referred for up to six sessions, with the possibility of additional sessions after a review. ​Human First Referral Guide is avialble here

You will need to provide both your Mental Health Treatment Plan & your referral to your psychologist when you book in your first appointment so they will be able to process your Medicare Claims. Your GP may send this on to your Psychology clinic on your behalf, it is recommended to get a copy yourself as well, then if you do need to supply it to the Psychology Clinic you don't need to go back to your doctor.

Claiming Your Medicare Rebate: What to Expect and How It Works

​Accessing Medicare rebates for psychology services in Australia can significantly reduce the financial burden of mental health care. However, it's important to understand that these rebates may not cover the entire cost of your sessions. Here's a straightforward guide to help you navigate the process and understand potential out-of-pocket expenses.​

To be eligible for Medicare rebates, you'll need a valid Mental Health Treatment Plan (MHTP) from your GP, psychiatrist, or paediatrician. This plan allows you to claim rebates for up to 10 individual and 10 group therapy sessions per calendar year under the Better Access initiative. Some psychologists offer bulk billing, meaning they accept the Medicare rebate as full payment for the service. In this case, you won't have any out-of-pocket expenses. It's advisable to confirm with your psychologist if they provide bulk billing services. If your psychologist doesn't offer bulk billing, you'll pay the full fee upfront and then claim the Medicare rebate. Most clinics handle the Medicare claim process on your behalf. Here's how it typically works:​

  • Payment: You pay the full session fee to your psychologist.​

  • Claim Submission: The clinic submits your claim to Medicare electronically.​

  • Rebate Deposit: Medicare processes the claim and deposits the rebate into your nominated bank account.​

Alternatively, if the clinic doesn't submit the claim for you, you can claim the rebate yourself through:​

  • myGov: Log in to your myGov account linked to Medicare and submit your claim.​

  • Express Plus Medicare App: Use the Express Plus Medicare mobile app to submit your claim.​

​Is telehealth psychology covered under medicare?

​Yes, telehealth is a viable option for accessing psychological services, and the eligibility requirements and Medicare rebate amounts are the same as for in-person sessions. This means you can choose between telehealth and face-to-face consultations based on your preference and still receive the same Medicare benefits. ​