Income Gap Widens in Children's Mental Health Care
A Monash University study finds lower-income children are increasingly missing out on Medicare-subsidised psychological treatment in Australia.
Updated on Nov. 10, 2026 in Mental Health
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Research from Monash University found the income-related gap in children's access to Medicare-subsidised psychotherapy nearly doubled between 2014 and 2023. By 2023, fewer than one in three children from the lowest-income neighbourhoods received such treatment within three months of a Mental Health Treatment Plan.
Why it matters
The findings suggest that cost and access barriers are affecting who can obtain timely mental health care across Australia. Lower-income families appear to be bearing the greatest burden as out-of-pocket costs rise.
Linked Medicare and tax records covering 5.4 million Australians show child psychotherapy use within three months of a Mental Health Treatment Plan fell from 63 per cent to 45 per cent between 2014 and 2023, with the steepest declines in lower-income neighbourhoods. The study does not establish the causes of this decline.
The players
Monash University
A major Australian public research university whose researchers conducted the study on access to psychotherapy.
The details
Researchers linked Medicare and tax data for people who received a Mental Health Treatment Plan between 2014 and 2023 and measured whether psychotherapy was received within three months. Average out-of-pocket costs for an initial session rose from $35 to $80 for adults and from $44 to $90 for children, in inflation-adjusted dollars.
Timeline
2014: Study period begins, with baseline psychotherapy use and out-of-pocket costs measured.
2023: Study period ends, with the latest income gap and cost figures recorded.
Big Picture
The findings concern the Medicare-subsidised Mental Health Treatment Plan pathway, which funds psychological care for Australians with mental health conditions. The study shows that uptake of psychotherapy under this pathway has become more unequal by income since 2014.
Families on lower incomes may face higher out-of-pocket costs for psychological sessions, which can delay or prevent treatment. Parents seeking care for children may need to check whether a Mental Health Treatment Plan and Medicare-subsidised sessions are available in their area.
The takeaway
Cost remains a major barrier to mental health care, and the study suggests that financial circumstances increasingly shape whether children receive timely psychotherapy. Checking eligibility for Medicare-subsidised sessions early can help families plan.
Further reading
Explore more coverage of Mental Health for context on access to psychological care.
Source note: This article includes information reported by Dungog Shire News Of The Area.
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