Australia becomes first to reimburse psychedelic therapy for veterans

The Australian Government has taken a historic step by approving federal funding for psychedelic-assisted psychotherapy (PAP) for veterans suffering from post-traumatic stress disorder (PTSD) and treatment-resistant depression (TRD). Through the Department of Veterans’ Affairs (DVA), eligible veterans will now be able to access MDMA or psilocybin treatments within a regulated clinical setting at no personal cost.

This decision follows the 2023 rescheduling of both substances for medical use under strict regulatory control. Treatments will only be administered by psychiatrists who have received formal authorisation, and only after the patient has failed to respond to multiple mainstream therapies.

Although the evidence base remains in development, safety data from the Therapeutic Goods Administration (TGA) shows no adverse events reported under its authorised prescriber scheme in the past two years. The rollout, guided by clinical protocols from the Royal Australian and New Zealand College of Psychiatrists, will prioritise high clinical oversight and careful patient selection.

Psychedelic Consultancy, a key advocacy and training body in the space, is supporting clinicians through the authorisation process and helping expand access, particularly in underserved rural areas.

The DVA has made clear that retrospective reimbursement will not be offered for previously self-funded treatment. Veterans interested in exploring PAP must go through an approved prescriber and meet strict medical and psychological suitability criteria.

If you are a veteran interested in receiving PAP, you will need to speak to your GP, psychologist, or psychiatrist, who can refer you to an authorised prescriber. Only authorised prescribers can apply for DVA funding on your behalf. You must have previously tried multiple standard treatments for PTSD or TRD without success. Self-funded treatments are not eligible for reimbursement.

For further support or to understand whether PAP might be appropriate for you, visit the DVA’s information page.

For free, confidential 24/7 counselling services, contact Open Arms – Veterans and Families Counselling:
📞 1800 011 046
🔗 www.openarms.gov.au

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