The Federal Government has announced a significant investment in psychology education and training, promising 500 student places and support to improve engagement with postgraduate psychology courses over a four-year period.

The government has recognised the urgent need to expand the mental health workforce and has taken steps to increase the number of postgraduate psychology places at universities. This move aims to address the critical shortage of mental health professionals and ensure that more Australians can access the support they need.

Key Initiatives:

  • Increased University Places: A substantial number of additional postgraduate psychology places will be offered at leading Australian universities over the next four years.
  • Expanded Internship and Supervisor Training: The government will fund more psychology internships and supervisor training programs, particularly in regional, rural, and remote areas.
  • Reforming the Psychology Education and Registration Pathway: Efforts will be made to streamline the psychology education and registration process, making it easier for students to complete their studies and enter the workforce.

This initiative will provide support to provisional psychologists by funding 681 one-year internships and up to 2,860 Psychology Board of Australia-endorsed supervisor training places over a four-year period. To streamline the pathway to becoming a psychologist, the government will work with the Psychology Board to reform the education and registration process.

The Problem

Notwithstanding strong demand and interest, a mere 10% of students are able to complete the required postgraduate course and become registered psychologists, primarily constrained by the limited availability of university places.

It has been reported that when assessing applications for postgraduate places, a university typically receives up five times more applications than the amount of available places.

Why is this important?

Australia faces a mental health crisis, with increasing numbers of people seeking support. The Mental Health Workforce Strategy 2022-2032 forecasts a significant shortfall in psychologists by 2030, with only 35% of the required workforce projected to be available unless immediate steps are taken to address the issue.

Approximately 50% of the Australian population will experience mental illness during their lifetime, resulting in an estimated economic cost of up to A$220 billion per annum, based on pre-pandemic data.

A significant proportion of psychologists, approximately one-third, have reported closing their books to new patients due to the overwhelming demand for their services.

The mental healthcare labor market is characterized by several factors that contribute to workforce shortages and distortions. These include the labor-intensive nature of healthcare work, lengthy training periods, the limited efficacy of traditional policy levers such as remuneration, and challenges in recruiting and retaining mental health nurses and psychiatrists, particularly within public mental health services. Further research is required to develop and evaluate effective interventions to address these challenges.1Looi JC, Allison S, Bastiampillai T, Hensher M, Kisely S, Robson SJ. Australian specialised mental healthcare labour shortages: Potential interventions for consideration and further research. Australas Psychiatry. 2024 Oct;32(5):446-449. doi: 10.1177/10398562241267138. Epub 2024 Aug 7. PMID: 39110758; PMCID: PMC11440790.

Is this Solution Adequate?

Postgraduate psychology courses are costly to deliver, requiring substantial resources in terms of staff-to-student ratios and clinical supervision and placement. Unlike medical degrees, these programs receive significantly less government funding, resulting in financial losses for universities. This, coupled with consistently high demand for training places, has led to program closures, particularly in specialized areas such as clinical neuropsychology, health, counseling, and forensic psychology.

While the incumbent government’s proposed funding and support is welcome, much more is required to meet the demands of the sector if the targets in the Mental Health Workforce Strategy 2022-2032 are to be met.

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