Australian Mental Health Market Expansion Reflects Sustained Telehealth Adoption

The Australian mental health services market reached an estimated USD 10,452.7 million in 2025 and is projected to expand at a compound annual growth rate of 15.30 percent through 2034, according to IMARC Group. The expansion is being driven by rising prevalence of anxiety and depression, broader public awareness, and the increasing role of digital and telehealth platforms in extending the reach of psychological support beyond traditional in-clinic models. Industry analysts have pointed to telehealth as a structural feature of the mental health system rather than a temporary pandemic-era addition, supported by ongoing Medicare Benefits Schedule arrangements and growing consumer comfort with video-based consultation.

Demand for accessible mental health support has reshaped how Victorian residents engage with psychological services. The Australian Institute of Health and Welfare reported that videoconference mental health telehealth consultations rose sharply from 1.3 percent of Better Access consumers in 2020 to 36 percent in 2021, with more than one million consumers accessing services via video in that single year. The shift has held since, with practitioners across the state continuing to offer telehealth alongside in-person work. Adults across Victoria increasingly turn to online counselling in Melbourne when scheduling, travel time, or distance from a preferred practitioner makes weekly in-clinic attendance impractical. The model has proven particularly suited to depth-oriented modalities including Internal Family Systems and attachment-based work, where therapeutic continuity matters more than physical location.

A similar pattern is visible in New South Wales, where residents of Australia's largest city face well-documented challenges in matching with practitioners trained in specialised therapeutic approaches. Industry data from Expert Market Research valued the Australia telehealth market at approximately AUD 1,747.40 million in 2025, with mental health consultations representing one of the fastest-growing service categories. Sydney residents seeking specialised modalities are increasingly accessing telehealth counselling in Sydney delivered by interstate practitioners, removing the friction of cross-city travel and broadening choice beyond the local supply of suitably trained therapists. The Royal Australian College of General Practitioners has reported that the share of GPs providing telehealth services rose from 13 percent before the pandemic to 99 percent in the period that followed, reflecting how thoroughly virtual consultation has been absorbed into routine primary care.

Providers such as True Self Space have responded by structuring their practices to support both in-person sessions and Australia-wide telehealth delivery, with secure video conferencing matched to the same 50-minute session structure as in-clinic appointments. The continued expansion of the Australian mental health market, combined with sustained public investment in telehealth Medicare items, suggests that hybrid in-person and online delivery will remain the default model for psychological services in the years ahead.

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