Greens Say They Will Tax Corporations to Pay for Free Mental Healthcare

Greens will raise the Medicare rebate to at least $150 per session with a clinical or registered psychologist.

Leader of the Australian Greens Adam Bandt speaks during Question Time at Parliament House in Canberra, Australia on March 30, 2023. Martin Ollman/Getty Images

The Greens are backing the inclusion of unlimited mental health care under Australia’s taxpayer-funded universal healthcare system, Medicare.

This ambitious proposal, labelled one of the party’s “Robin Hood” reforms, will be funded by taxing large corporations.

According to data from the Australian Bureau of Statistics (ABS), 43 percent of Australians will experience mental health issues in their lifetime. In comparison, 24 percent have delayed or avoided seeing a psychologist due to costs.

The plan, revealed by federal Greens Leader Adam Bandt, said the party would strongly advocated for it if it is part of a minority government.

“Under Labor and Liberal, big corporations are price gouging and making massive profits during a cost-of-living crisis,” he said.

Bandt said everyday people were being forced to choose between mental healthcare and housing.

Senator Jordon Steele-John echoed the community’s need for affordable mental health services.

“We’ll also increase the rebate and expand the range of providers able to offer Medicare sessions to include provisional psychologists.

The plan comes after the Greens recorded a poor result at the Queensland state election, recording big swings against it in the only two seats they hold in the Legislative Assembly. The party managed to continue picking up support and “protest votes” around the state, bolstering their overall vote numbers.

With 84 percent of the vote counted on Oct. 31, the Greens look likely to lose the seat of South Brisbane, and may narrowly hold the affluent seat of Maiwar.

The left-wing party had hoped to expand its influence, yet across three elections this year, that has not been the case, with the party going backwards in electorates it has held.

What Does the Mental Health Plan Include?

First, it will allow unlimited mental health sessions.

Australians can access ten subsidised sessions through the Better Access Scheme, reduced from 20 by the Albanese government. The Greens plan to eliminate this cap entirely.

Second, the initiative includes creating 1,000 free local healthcare clinics across Australia to increase access.

Third, the Greens will raise the Medicare rebate to at least $150 per session for a clinical or registered psychologist, meaning taxpayers will cover the costs.

Fourth, the proposal supports the workforce by enabling provisional psychologists to access Medicare-subsidised sessions, as well as committing to add 1,000 peer workers.

Current Funding Landscape for Mental Health

Currently, Australia’s mental health treatment plans allow for up to 10 individual and 10 group sessions with mental health professionals each calendar year.

A doctor or psychiatrist can refer patients for six sessions initially, with the possibility of further referrals. However, costs can vary, and partial expenses may be covered by Medicare.

Government data indicates that in 2021–22, Australia spent approximately $12.2 billion on mental health services, with a 3 percent annual increase since 2017–18.

The funding distribution shows that state and territory governments contributed 60 percent, the Australian government 35 percent, and private insurers covered the remaining 5 percent.