Legal Guide for Counsellors & Therapists in Australia

Last updated: 16 January 2026

Click on any of the questions below to jump to that section of this ‘Legal Guide for Counsellors & Therapists in Australia’. Click this link to go to our Legal Guide for Psychologists or this link to go to our Legal Guide for Psychiatrists.

If, after reading this guide, you still have a question, get in touch, as we’d love to keep adding your questions to this comprehensive guide.

Registration, Title Protection & Legal Status in Australia

Can I legally call myself a counsellor or therapist without formal qualifications?

Yes. In Australia, these professional titles aren’t protected, meaning anyone can use them regardless of training, education or certification. However, this means there is no regulatory protection and full personal liability. Joining the Australian Counselling Association (ACA) or the Psychotherapy and Counselling Federation of Australia (PACFA) can boost credibility and provide ethical standards, but membership is voluntary.

What’s the difference between registered and unregistered mental health practitioners?

Registered practitioners (psychologists, psychiatrists) are regulated, have protected titles, and must meet mandatory qualifications. Unregistered service providers (counsellors, therapists) are not regulated, have no oversight and no formal complaints process exists. This means higher personal risk and less client recourse.

Aspect	Counsellors	Psychologists	Psychiatrists
Education	Diploma to master’s degree in counselling	Minimum 4-year degree + 2 years supervised practice	Medical degree + minimum 5 years specialist training
Registration	NOT regulated (anyone can use title)	AHPRA registered (protected title)	AHPRA registered medical specialists
Professional Bodies	ACA or PACFA (voluntary)	APS, AHPRA (mandatory)	RANZCP, AHPRA (mandatory)
Medicare Rebates	No	Yes (with Mental Health Care Plan)	Yes
Sessions Covered	N/A	Up to 10 per year	Varies (often fully covered in public)
Can Prescribe Medication	No	No	Can diagnose, treat, and hospitalise
Typical Cost	$80-200 per session (no rebate)	$150-300+ after Medicare rebate	$400-600+ (private)
Wait Times	Usually immediate	2-6 weeks	3-6 months (public)
Focus Areas	Life transitions, relationships, stress, grief	Mental health disorders, therapy, assessments	Severe mental illness, medication management
Treatment Approach	Talk therapy, practical strategies	Evidence-based therapies (CBT, DBT, etc.)	Medication + therapy, hospital admission
Clinical Authority	Cannot diagnose mental illness	Can diagnose and treat	Can diagnose, treat, hospitalise

What is the difference between a counsellor and a psychologist in Australia?

Psychologists must hold an accredited degree, complete supervised practice, and register with AHPRA. They can diagnose mental health conditions, use protected psychological assessments, and access Medicare rebates. Counsellors have no mandated qualifications or registration requirements. They cannot diagnose, but can provide emotional support, psychoeducation, and therapeutic interventions. Many counsellors hold diplomas or degrees in counselling, but this isn’t legally required.

What is a “Therapist”?

“Therapist” is an umbrella term, NOT a protected title in Australia. Anyone can legally call themselves a “therapist” – it’s not regulated by AHPRA or any government body. This creates confusion for consumers.

Professional	May Call Themselves	Legal Protection
Psychologists	Therapist, Psychotherapist	“Psychologist” is protected
Counsellors	Therapist, Psychotherapist	No protection
Social Workers	Therapist (if doing therapy)	“Social Worker” is protected
Psychiatrists	Rarely use “therapist”	“Psychiatrist” is protected
Anyone else	Can use “therapist” freely	No protection

And here are examples of some of the most common types of “therapists” in Australia:

Type	Qualifications	Medicare Rebates	Examples
Psychotherapist	Varies wildly (cert to doctorate)	No (unless also a psychologist)	Often counsellors with extra training
Marriage/Family Therapist	Usually counselling degree	No	Relationship specialists
Art/Music/Play Therapist	Specific therapy training	No (unless also registered professional)	Creative therapy approaches
Massage Therapist	Cert III/IV or Diploma	No (health insurance only)	Physical therapy
“Energy Therapist”	Often unregulated training	No	Reiki, crystal healing, etc.

Should I join ACA or PACFA as an unregistered practitioner, and what are the legal implications?

Joining a registered organisation offers credibility, ethical guidelines for your business, complaint handling, access to insurance, and Continued Professional Development support. Non-compliance risks losing membership and insurance, but has no legal penalties.

Feature	ACA	PACFA
Annual fee	~$310/year	~$455/year (via member association)
Min. qualification	Diploma (AQF 5) minimum	Bachelor (AQF 7) minimum
CPD requirement	25 hours/year	20 hours/year
Supervision required	10 hours/year (Level 3-4)	10-15 hours/year minimum
Insurance access	Yes, discounted rates	Yes, via member associations
Best for	Counsellors, diploma-level practitioners	Psychotherapists, degree-level practitioners

Am I at greater legal risk practising without AHPRA registration?

Yes. Without Australian Health Practitioner Regulation Agency (AHPRA) registration, there are more legal risks. Without registration, you don’t have the legal protections or recognised standards that come with being a regulated health professional. This can mean you are more exposed to legal claims under consumer or negligence laws, your insurance may not cover you, and your credibility could be questioned in legal or dispute settings.

Can I practice across state borders as a therapist or counsellor?

Yes. But you need to familiarise yourself with each state’s laws where you practise regarding mandatory reporting, consumer protection, and health regulations. Also, ensure your insurance covers all locations and understand local crisis resources.

Mandatory Reporting Obligations in Australia

Do I have mandatory reporting obligations as a therapist or counsellor?

Mandatory reporting depends on your employment setting and state laws, not your registration status. Roles in health, education, and child services typically require reporting suspected child abuse, while rules for private practitioners vary by state. Always check local child protection legislation. When in doubt, it’s best to report because of your ethical duty of care.

When must I report child abuse or neglect?

If you’re a mandated reporter, report any reasonable suspicion of abuse or neglect promptly to authorities. Non-mandated practitioners are encouraged to report in good faith.

Note: Always verify current legislation for your state. Laws change, and the below is a general guide only.

State	Who Must Report	Private Counsellors
NSW	Prescribed roles (teachers, doctors, nurses, police)	Not mandated (but encouraged)
VIC	Broad range including registered health practitioners	May be mandated if in certain roles
QLD	Limited to specific professionals (doctors, nurses, teachers)	Generally not mandated
SA	Wide-ranging requirements for many professions	Often mandated
WA	Limited mandates, expanding under reforms	Generally not mandated
TAS/NT/ACT	Varies – check local legislation	Check state/territory laws

Am I required to report self-harm or suicide risk?

Generally, there is no mandatory reporting unless it involves minors, in which case neglect may be implicated. Your role is to assess risk, make safety plans, involve emergency contacts, and break confidentiality only if there is imminent serious harm. Always document your actions carefully. Ethical considerations should include crisis management for your client in any case.

What happens if I fail to report when I should have?

Penalties include fines ($5,000 – $25,000), possible jail, civil suits, insurance issues, and reputational damage. When unsure, document decisions but err on the side of reporting.

Do reporting obligations differ in private practice versus organisations?

Yes. Organisations usually mandate reporting and training. Private practice varies by state. Ethical duties and personal liability are always considerations when reporting obligations arise in any health practice.

Scope of Practice & Professional Boundaries

Can I diagnose mental health conditions as a counsellor or therapist?

No. Only registered health practitioners such as psychologists, psychiatrists, and general practitioners can diagnose mental health conditions. You can discuss symptoms, use screening tools, form impressions, refer clients for diagnosis, and work with existing diagnoses. Avoid using diagnostic labels or implying you can diagnose.

What services am I legally allowed to provide without registration?

Counselling, emotional support, psychoeducation, skill-building, group work, and coaching. You cannot prescribe medications, diagnose, or claim registered status.

Can I refuse to see a client or terminate counselling?

Yes, with proper notice and reasons like lack of competence, aggression, or poor fit. Provide referrals and document thoroughly. Never abandon high-risk clients and ensure they have a referral and backup options to continue their services and sessions.

How do I know if I’m practising beyond my competence?

If you feel out of depth, lack supervision, or see poor outcomes, you might be. Stay within your scope of practice, get training and supervision, and refer clients when needed.

Can I provide assessment reports or letters of support?

Yes, for attendance or session summaries. Do not diagnose or provide medical certificates. Clearly state your qualifications and limitations to both your client and in any report you provide.

Privacy, Confidentiality & Record Keeping

What are my legal obligations regarding client confidentiality?

You must comply with the Australian Privacy Law (APL) and the Australian Privacy Principles (APP):

• Keep client information confidential
• Explain the limits of confidentiality upfront
• Store information securely, and
• Only share information with client consent or when legally required.

Confidentiality extends beyond the end of the therapeutic relationship. Breaches can result in civil claims and damage to your professional reputation.

When can I break confidentiality without client consent?

Only for imminent harm, mandatory reporting, court orders, supervision, or client consent. Limit disclosure, document decisions, and, when possible, keep clients informed.

Do I need to keep client records, and for how long?

Good practice recommends keeping records for at least 7 years for adult clients and until clients turn 25 if they were minors. Records should include session dates, presenting issues, interventions, and risk assessments. Store records securely and have clear protocols for their eventual destruction. Medical record retention varies per state, so ensure you are clear on the requirements.

Can I record sessions, and do I need written consent?

Yes, you can record a session only with explicit written consent. You must explain the purpose for recording, how the recording will be used, stored, and how and when it will be accessed. Recording without consent is illegal and unethical.

What happens if I receive a request for client information?

You need to verify the legal basis for the request, such as client consent, subpoena, or police warrant. Where appropriate, notify the client and seek legal advice before releasing any information. Always document all requests and responses carefully.

Am I bound by the Privacy Act if I’m a small practice?

Yes and No. For general client information, such as contact details, there is no legal requirement if your practice turnover is under $3 million. But you are still required to protect client privacy and follow state laws and ethics.

Following Australian Privacy Principles is best practice. If you are collecting health or medical information, you must comply with the collection of sensitive information requirements under APL and include the relevant required statements when you collect medical or health information.

Professional Liability & Risk Management

What insurance do I need as an unregistered practitioner?

Professional indemnity insurance is essential and should cover negligence claims, legal defence, public and product liability, and provide retroactive and run-off coverage across all states where you practice. Always fully disclose your qualifications and services to insurers, including the states you are practising in.

Expect to pay: $185 member rate or $300-$800 per year for basic professional indemnity coverage. Premiums vary based on services offered, client volume, and coverage limits.

Can clients sue me even though I’m not regulated?

Yes, clients can sue you in civil court for negligence, breach of confidentiality, misleading conduct, or breach of contract. Without regulatory protection, you face greater liability risk and bear full personal liability. Maintaining strong insurance, clear legal agreements, and careful practice ethics is vital and is your best protection.

What are the most common reasons counsellors or therapists get sued?

Common reasons counsellors or therapists get sued include:

• Breaches of confidentiality
• Boundary violations (especially sexual)
• Practising beyond competence
• Failure to manage risk
• Misleading claims
• Poor record-keeping
• Abandoning clients, and
• Providing harmful or personal ‘advice’.

How do I protect myself from negligence claims?

Protect yourself by having comprehensive insurance, clear legal service agreements, maintaining professional boundaries, documenting thoroughly, seeking supervision, referring clients appropriately, and applying conservative risk management strategies. Strong compliance measures in your practice are an extremely important protection.

What constitutes professional negligence in counselling?

Professional negligence happens when you fail to meet reasonable care standards that have the potential to cause actual client harm. Examples include

• Missing serious risk factors
• Practising beyond your skill level
• Breaching confidentiality
• Providing personal ‘advice’
• Diagnosing clients, or
• Using harmful interventions.

Am I personally liable without regulatory protection?

Yes. Without registration, the risk to health services is higher, and your personal assets are at risk. Use appropriate business structures and conservative practices to reduce this.

State-by-State Variations in Australia

Do counselling regulations differ between Australian states?

Yes, there are differences in mandatory reporting, health regulations, business registration, consumer protection, privacy laws, and workers’ compensation. It’s important to check local laws for every state where you practise.

Which states have mandatory reporting for private counsellors and therapists?

Reporting requirements vary per state: New South Wales limits it to prescribed roles; Victoria has broader obligations; Queensland generally does not mandate reporting for private practitioners; South Australia has wide-ranging requirements; and Western Australia has limited mandates. Always verify current legislation in your state and any state where you are practising.

Can I provide services via telehealth to clients in other states?

Yes, but ensure your insurance covers all client locations. You also need to understand local laws, emergency resources, technology security, and business registration requirements in each state where you offer your services. Inform clients about telehealth limits and have clear local crisis protocols on hand.

Are there state-specific requirements for counsellors in schools or healthcare?

Yes, most states require working with children checks, mandatory reporting training, education authority rules, health service standards, supervision, and certain qualifications. Always check regulations specific to your work setting and specific to the state.

Do any states require counsellor registration?

No states currently require counsellor registration. Counselling remains unregulated nationally, although some states have considered regulation. Some states recommend voluntary registration, particularly where mental health counselling is involved. Stay updated through professional associations.

Can I practice and offer my services worldwide?

No. Other countries have their own licensing, certification and privacy laws, such as GDPR in the UK and Europe. You must comply with local laws and certification requirements, understand local emergency services, and ensure insurance coverage, all of which can be complex and costly.

Required Legal Agreements & Notices

What legal agreements and notices do I need for private practice?

Consider using these legal agreements and notices to help protect you and your clients:

• Client consent forms
• Legal service agreements, with terms and disclaimers
• Privacy policy
• Fees and cancellation policies
• Professional disclosure
• Crisis contacts, and
• Complaints procedures.

Do I need to disclose that I’m not AHPRA registered?

Yes. Full transparency is both legally and ethically required. You should disclose your qualifications, association memberships, and non-registration status, explain what this means for clients, and provide information on complaint options. Failing to disclose this may breach consumer law.

What consent forms are essential for counselling services?

Consider using these consent forms in your practice:

• Informed consent
• Confidentiality limits
• Fees and cancellations
• Information collection
• Risk acknowledgment
• Recording consent, and
• Information release.

Should I have written agreements about fees and cancellations?

Yes. Your policies should clearly state your fee structure, accepted payment methods, cancellation-notice requirements (usually 24 hours), late-cancellation fees, payment terms, and refund policies.

You should also ensure you have the right to suspend or termination services for non-payment. Make sure clients acknowledge these terms before beginning sessions.

What policies do I need for boundaries and communication?

Policies should address session boundaries and length, between-session contact protocols, emergency contacts, social media and gift policies, physical contact and dual relationships, and accepted methods of communication.

Also, ensure your policies and terms give you the right to cease services and refer to other professionals if the client’s scope is outside your competency or if you feel there is a breakdown in the relationship.

What disclaimers do I need when advertising on mental health platforms?

Disclaimers should clearly state your qualifications and limits, that you are not AHPRA registered, that your service is counselling and not medical treatment, any crisis or geographic limitations, privacy and data security standards, and when clients should seek registered practitioners. Your disclaimer should include reliance on your ‘advice’ and diagnosis issues. Align your disclaimers with legal protections, insurance requirements and professional standards.

What additional agreements do I need if I offer coaching or workshops?

For coaching or workshops, separate agreements should define your coaching services and include confidentiality terms, rules for workshop group participation, intellectual property rights, recording consent, liability waivers, and refund policies. Maintaining clear boundaries between therapy and coaching services is essential.

If you need help with launching a coaching service alongside your counselling practice, then get in touch with Legal123.

We hope you found this Legal Guide for Counsellors & Therapists in Australia helpful.

References

1. Children and Young Persons (Care and Protection) Act 1998 (NSW)
2. Health Practitioner Regulation National Law Act 2009 (NSW)
3. Psychotherapy and Counselling Federation of Australia, ‘The problem of unregistered practitioners’ (2023) pacfa.org.au
4. Psychology Board of Australia, ‘Counsellor fined for posing as a psychologist’ (13 July 2017) psychologyboard.gov.au
5. Australian Institute of Family Studies, Children and Family Community Australia, ‘Mandatory reporting of child abuse and neglect’ (CFCA Resource Sheet, June 2020) aifs.gov.au
6. Communities and Justice NSW, ‘Who are mandatory reporters?’ (Website, 2020) dcj.nsw.gov.au
7. Psychology Council of NSW, ‘What are my mandatory reporting obligations?’ (Website) psychologycouncil.nsw.gov.au
8. Office of the Australian Information Commissioner, ‘Australian Privacy Principles (APPs)’ (2023) oaic.gov.au

About the Author: Vanessa Emilio

Vanessa Emilio (BA Hons, LLB, ACIS, AGIA) is the Founder and CEO of Legal123.com.au and Practice Director of Legal123 Pty Ltd. Vanessa is a qualified Australian lawyer with 20+ years experience in corporate, banking and trust law. Click for full bio of Vanessa Emilio or follow on LinkedIn.

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