Two years ago, Australia made international headlines when it became the first country to allow the medical use of psychedelic-assisted therapy substances for specific mental health conditions.

The landmark decision saw the national medicines regulator approve psilocybin for treatment-resistant depression, and MDMA for post-traumatic stress disorder (PTSD).

For some, it was a long-awaited shift away from conventional health treatments that were perceived as failing patients. However, peak medical bodies warned the decision was premature, citing limited research and unknown long-term side effects.

As gaps remain in the medical understanding of psychedelic-assisted mental health treatments, some experts warn that financial exploitation may already be taking root in the industry. This is contrasted by patients who say it’s changed, or even saved, their lives. 

Today, we’ll explain the current landscape of psychedelic-assisted therapy in Australia. 

Before we get into it, just a heads up that today’s newsletter discusses distressing themes. For 24/7 crisis support, contact Lifeline on 13 11 14.

The Therapeutic Goods Administration (TGA) permits the use of psychedelic-assisted therapy (PAT) under controlled conditions for a specific cohort: Patients with treatment-resistant depression and PTSD.

Authorised prescribing is strictly limited, and the illicit or unsupervised use of MDMA and psilocybin (found in magic mushrooms) remains illegal.

This alternative form of therapy is often administered in small doses in a softly lit clinical room, under the strict supervision of authorised psychiatrists and trained support staff.

However, the country’s peak representative body for psychiatrists has questioned the practice’s effectiveness. Royal Australian and New Zealand College of Psychiatrists’ (RANZCP) Dr Richard Harvey said there’s limited evidence to suggest that psychedelics might be helpful.

“It’s probably not to do with the drug itself… It’s perhaps the psilocybin putting the person’s brain into a state where they can more fully engage in psychotherapy,” he told TDA. 

While the peak body supports ongoing research into PAT, it remains cautious about the long-term implications of the commercialised sector.

Dr Harvey cautioned online “hype” around these treatments that could lead to “very, very unreliable information and potentially dangerous information,” spreading. He warned that a lack of public understanding could fuel misinformation and put people at risk.

Plus, there are financial concerns, Harvey said.  

“For most patients, there’s no funding for this. It’s not covered by Medicare. The costs are stratospheric. Most people can’t afford to lose that sort of money.”

27-year-old Jeremy Wein is among the few Australians to have undergone PAT since the TGA approved its use in 2023.

Following a diagnosis of complex PTSD and cycles of depression, he spent almost a decade trying different therapies, including medication, inpatient treatment, and electroconvulsive therapy — a controversial treatment in which electric currents are sent to the brain while the patient is anaesthetised.

Jeremy explained feeling as though he had run out of treatment options.

“ I had reached the end of the line… so what was next? When you’re cycling in and out of psychiatric wards, you don't have a future… You can't say anything for sure because you don't know that you'll be in this world for sure,” he said.

Once he was approved for PAT, Jeremy underwent several dosing periods. This was followed by intensive therapy, where he worked with his prescribers to process his experiences and develop actionable steps for his life.

Jeremy described the treatment as empowering. It gave him the agency, “to be who I wanted to be,” he told TDA. 

However, his experience with psychedelic-assisted therapy was defined as much by the treatment itself as the industry’s growing pains.

While the treatment sessions were positive experiences for Jeremy, he described aftercare support as “inaccessible”. 

The immediate mental health support he received lasted about 48 hours post-treatment. Following that, Jeremy said he felt abandoned. 

“It’s such an introspective and vulnerable place that you are put in”. 

Recalling these moments, he said he felt like he had “no one to call for help”. 

Access isn’t the only hurdle — the out-of-pocket costs for treatment can run into the tens of thousands of dollars. Jeremy, who also had to pay for travel to Newcastle, NSW, from his home in Melbourne, is still recovering financially from the treatment. 

“$35,000 to $40,000 is a joke… But when you’ve got no other option… you’ll pay anything.” 

Mind Medicine Australia has emerged as one of the leading voices in addressing concerns about treatment costs.

The organisation’s goal is to ensure treatment is accessible to those who need it, “no matter their financial circumstances or where they’re based in Australia”.

In 2024, Mind Medicine launched its Patient Support Fund, raising more than $115,000 to subsidise costs for patients in need.

CEO Tania De Jong told TDA: “We pay up to 50% of the upfront costs for a patient who’s really in demonstrable need”. 

She acknowledged concerns raised by medical groups about these treatments, but warned “there’s a far greater risk of doing nothing”. 

“Patients will take matters into their own hands, and then they’ll no longer be able to be healed because they won’t be here anymore… Sometimes what you have to do is just start.”

In October, the Department of Veterans’ Affairs became the first government body to approve public funding for PAT.

It allows eligible veterans, who have already tried multiple standard treatments without success, to access the therapy under strict supervision.

The move gives hope to patients with treatment-resistant depression and PTSD. 

But adding psychedelics to the Pharmaceutical Benefits Scheme would require a formal application and approval from the scheme’s advisory body of health experts, which reviews submissions from medical experts, industry stakeholders, and the public.

The assessment process could take months at a minimum. Some experts don’t expect broader public funding for the treatment any time soon.

Until then, efforts to improve equity of access may remain in the hands of individuals and community-led initiatives.

Lifeline: 13 11 14

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