The Australian Psychological Society (APS), the peak body for psychology, says data from the Australian Institute of Health and Welfare (AIHW) 'Australia's health 2026' report reinforces the need for ongoing concern, despite recent Federal Government initiatives proposed to improve youth mental health care. The data shows almost 2 in 5 young Australians aged 16–24 (39%) are experiencing a mental disorder.
The report also confirms that this is the age group most likely to access Medicare-subsidised sessions with a psychologist.
APS President Dr Kelly Gough said the findings reflect what psychologists across the country are seeing every day: more young Australians are struggling, and many are seeking help only after problems have become severe.
"These figures show that too many young Australians are experiencing significant mental health challenges during some of the most important years of their lives. They deserve a system that identifies their problems earlier and provides timely access to psychology services before distress becomes entrenched," Dr Gough said.
The APS has consistently called for greater investment in prevention and early intervention for young Australians, particularly through schools, universities, workplaces and primary care settings.
Dr Gough said Australia's mental health system remains heavily weighted toward responding to crisis rather than preventing it.
"Australia has invested in expanding our treatment services, but we also need greater investment in prevention and early intervention so that more of our young people never reach the point of requiring crisis care.
"We know that timely access to support from psychologists does more than just reducing the severity and duration of mental health conditions. It can also improve educational and employment outcomes, relationships, physical health and participation in the community.
"Addressing mental health issues early has the power to change the trajectory of a young person's life. More needs to be done to adequately support young Australians, ensuring their unique needs are being met," he said.
The AIHW data also shows a substantial rise in Medicare-subsidised mental health service use (the vast majority of which are provided by psychologists) among women aged 25–34, with access rates increasing 26% over the past decade, compared with an overall increase of around 9%.
Dr Gough said this trend highlights both growing need and the importance of funding measures which ensure services remain affordable and accessible.
"It's encouraging to hear many Australians are seeking support, but too many still face financial barriers, long wait times, and difficulty accessing services in their community," he said.
The AIHW report also shows increasing disease burden associated with chronic health conditions and ageing-related conditions. Beyond treating mental health issues, psychologists are well-placed to improve health and wellbeing outcomes for all Australians. Psychologists have a unique but underutilised contribution as part of a multidisciplinary approach to prevention, early intervention, treatment and population health.
In its Pre-Budget Submission 2026-27, the APS called for innovative, yet practical and future-facing investments that would genuinely improve access to psychology services. Included were 10 costed, targeted, fiscally sustainable solutions that would allow Government to achieve positive outcomes for the Australian community.
The initiatives focus on:
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Increasing and indexing Medicare rebates for psychology services
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Enabling psychologists to determine treatment length
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Streamlining GP referral processes to psychologists
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Improving youth access to psychology services, and;
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Extending the flexibility of family and carer participation sessions under the Better Access initiative.
Dr Gough concludes, "Australia has available the psychological expertise to make a real difference. The continued challenge is ensuring that every Australian, particularly young people, can access the right support at the right time, regardless of where they live or their financial circumstances."
