Psychology and the NDIS: FAQs

Here at Leap in! HQ we’re often asked questions about the NDIS and psychology. With more than 49% of Australians experiencing a mental health disorder during their lifetime, it’s important to understand what the NDIS funds related to psychology and what it doesn’t.
We answer some frequently asked questions and share useful links for anyone who needs mental health support that’s not covered by the NDIS.

Will the NDIS fund psychology?

Psychologists can be an important source of mental health support for people with a disability. But the NDIS only funds psychology under certain circumstances.

The NDIS will only fund mental health supports that:
  1. Are not clinical in nature
  2. Relate to an ongoing psychosocial disability (a disability arising from a mental health condition)
  3. Focus on building functional capacity and independence.

What is the difference between clinical and non-clinical mental health supports?

The difference between the two is key to determining whether the NDIS will fund psychology for you.

The NDIS does not fund clinical treatments provided by psychologists or other mental health professionals. Clinical treatments include diagnosis, treatment and ongoing mental health care. Examples of clinical treatments the NDIS does not fund:
  • Treatment for symptoms of a mental health condition
  • Ongoing mental health care in the community
  • Early intervention supports for mental health treatment including for child or teenagers
  • Residential care where the main purpose is inpatient treatment or clinical rehabilitation
  • Treatments for other conditions such as drug or alcohol dependency.
These services are the responsibility of the health system, not the NDIS. The NDIS may fund non-clinical supports provided by a psychologist or other mental health professionals to support participants with a psychosocial disability. Non-clinical mental health supports include emotional support, skill building and assistance with daily living. Examples of non-clinical supports the NDIS may fund:
  • A psychosocial recovery coach
  • Training and development to increase independence
  • Support coordination to connect with informal, community and funded supports
  • Help to participate in community, social and cultural activities
  • Support to connect positively with family, friends and others.

An easy way to think about it is:

NDIS = capacity building mental health supports Mainstream system = mental health treatment.

Does the NDIS cover psychiatry?

Psychiatric care, which involves diagnosis and medical treatment, is typically provided through the mainstream health system. The NDIS may fund non-clinical supports, such as a psychosocial recovery coach and capacity building activities, which work alongside clinical care. These supports focus on managing the day-to-day impacts of psychosocial disability and improving independence.

I’ve been told the NDIS does not fund psychology anymore and that I need a Mental Health Treatment Plan instead. Is this correct?

Not exactly. The NDIS may fund psychology if the support is non-clinical and related to building functional capacity. If you have a psychosocial disability you may be able to fund capacity building psychology supports with your NDIS Plan.

Treatment for mental health conditions including depression and anxiety is provided by the health system which may include obtaining a Mental Health Treatment Plan.

What is a Mental Health Treatment Plan?

A Mental Health Treatment Plan is a care plan developed by your doctor to manage a mental health condition like anxiety or depression. It outlines treatment options, available supports services and your goals.

A Mental Health Treatment Plan provides a Medicare rebate for up to ten individual and ten group sessions with a mental health professional each year.

Can I get a Mental Health Treatment Plan and the NDIS?

Yes. You can access both at the same time as they offer different types of support.

Examples from the NDIS.

Example 1.

Emilia has a mental health condition that has led to a psychosocial disability. She feels her condition is getting worse. She asks the NDIS to fund clinical treatment from a psychologist to supplement her Mental Health Treatment Plan.

Would the NDIS fund it?

No. The NDIS does not fund clinical mental health treatments. The health system is responsible for these supports.

Example 2.

Roxanne has a psychiatric condition that affects her daily life. She has an NDIS Plan to support her psychosocial disability. Roxanne requests funding for Capacity Building supports to help her learn life skills like paying bills and cooking. Her support needs will decrease over time as her independence grows.

Would the NDIS fund it?

Yes because the NDIS funds Capacity Building and Social and Community Participation supports if they are on the list of NDIS supports, relate to a disability, improve independence and enable daily activities. The supports requested are not clinical in nature and focus on building functional capacity and independence.

For more examples, check out the NDIS page on mental health supports, Would we fund it?

Where to get help if you’re not eligible for NDIS mental health support.

If you’re not eligible for NDIS mental health support, help is available from:

  • Your GP
  • Community mental health services
  • Medicare Mental Health, a free service connecting you with supports
  • Beyond Blue, Lifeline and other helplines that offer immediate support and referrals
  • Community-run peer support groups
  • Private therapists or psychologists.

Further reading.

 

Originally published 21 October 2021. Revised and updated 3 June 2025.

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