10 February 2025 - As universities open their doors in the coming weeks, Australia's peak body for psychology the Australian Psychological Society (APS) calls for more recognition for psychology postgraduate students who have been excluded from crucial financial support.
Amidst a nationwide shortage of mental health professionals, the APS is urging the government to extend the Commonwealth Prac Payment initiative to include postgraduate psychology students.
Becoming a registered psychologist is a demanding journey that requires significant time, effort and financial commitment. Master of Professional Psychology (MPP) students must complete 300 hours of placement within a year, while those pursuing a higher degree in an Area of Practice Endorsement (AoPE) undertake 1,000 hours over two years.
The extensive placement requirements, while essential for developing appropriate expertise, can place a heavy financial and logistical burden on students striving to enter the profession. In our current economic climate, many would-be psychologists are simply choosing to take different study and career pathways.
APS President Dr Sara Quinn said action is needed to address systemic challenges and improve access to quality mental health care.
"It is imperative that the government steps up to future-proof the psychology workforce by supporting students to undertake necessary placements," she said.
"Currently, the psychology workforce in Australia is only meeting 35% of the projected national demand. In these unsettling times of social and economic uncertainty and cost of living crisis, it is more important than ever to invest in the health of our country for the benefit of current and future generations."
Introduced last year, the Commonwealth Prac Payment initiative provides weekly payments of $319.50 (from July 2025) to nursing, midwifery, teaching and social work students completing mandatory practical training.
"The APS backs this significant initiative and recognises the importance and value of these professions. However, we are incredibly disappointed that postgraduate psychology students were excluded.
"Psychology graduates deserve the same financial support as these other professions.
"We urgently need to support initiatives to bolster the number of qualified psychologists to ensure the mental health and wellbeing of future Australians", said Dr Quinn.
While the APS acknowledges the recent Government grant to increase the number of psychology post-graduate places, postgraduate students need further financial support. In addition to often not earning income during this time (e.g. not being able to continue other employment due to the demands of a placement), students sometimes have to pay the supervising psychologists' hourly rate to complete the supervision requirements required for their placement. This places extra financial burden on students trying to complete their studies on the pathway to becoming a registered psychologist.
Strengthening the psychology workforce is a key priority of the recently released APS 2025-26 Pre-Budget Submission, which calls for vital measures to support the mental health and wellbeing of the Australian community.
The APS is also calling for funding to deliver a National Psychology Workforce Strategy. This Strategy would provide actionable and evidence-based advice to governments about how to equip, sustain and extend the psychology workforce in Australia.
