Psychiatrist Private Practice Setup & Legal Requirements (Australia)

Last updated: 22 August 2025

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Psychiatrist Registration & Practice Requirements

What are the key requirements to practice psychiatry in Australia?

To practice psychiatry in Australia, you must hold current AHPRA registration as a medical practitioner with specialist recognition in psychiatry. This requires completing Fellowship of the RANZCP (or equivalent overseas qualification assessment), maintaining professional indemnity insurance, completing 50 hours of CPD annually, and meeting recency of practice requirements. You must notify AHPRA of all practice locations and comply with mandatory reporting obligations, advertising guidelines, and professional standards.

How do I transition from public hospital to private practice?

Transitioning to private practice requires obtaining Medicare provider numbers for each practice location, setting up appropriate billing systems, and securing higher professional indemnity coverage (typically $20 million). You’ll need to establish compliant record-keeping systems, create patient agreements and consent forms, and ensure your practice meets privacy and health facility standards. Consider your business structure carefully – most private psychiatrists benefit from operating through a company for liability protection and tax efficiency once earning above $180,000.

What’s required for overseas-trained psychiatrists to practice in Australia?

Overseas-trained psychiatrists must have their qualifications assessed by the RANZCP through either the Substantial Comparability or Partially Comparable pathway. This involves document verification, interviews, and potentially supervised practice and examinations. You’ll need to demonstrate English proficiency, complete orientation to the Australian healthcare system, and may require up to 24 months of supervised practice. Once RANZCP requirements are met, you can apply for specialist registration with AHPRA.

Can I work across different States and Territories?

Your AHPRA registration allows you to practice anywhere in Australia, but you must comply with each State’s specific requirements. These include different Mental Health Act provisions, Schedule 8 prescribing authorisations, and mandatory reporting thresholds. You’ll need separate Medicare provider numbers for each practice location and must ensure your insurance covers all States where you practice. Some States have additional requirements for forensic work or ECT provision.

Practice Economics & Business Considerations

What can I expect to earn in private practice?

Private practice psychiatrists in Australia typically earn $300,000-$500,000 annually, but can range from $200,000 for new entrants to $600,000+ for busy specialists. Income depends on your fee structure, patient volume, and practice efficiency. Most private psychiatrists charge $400-$600 for initial consultations and $250-$350 for reviews. With Medicare rebates covering only $260 for initial appointments and $130 for reviews, patients face significant gaps unless you bulk bill. Consider your local market, competition, and patient demographics when setting fees.

What are the typical practice expenses?

Running a private practice costs approximately $80,000-$150,000 annually. Major expenses include:

• Room rental: $30,000-$60,000
• Professional indemnity insurance: $8,000-$15,000
• Reception/admin support: $40,000-$65,000
• Practice management software: $3,000-$5,000
• AHPRA registration: $1,000
• RANZCP membership: $2,950
• CPD expenses: $3,000-$5,000
• Accounting: $3,000-$5,000

Many psychiatrists start by renting rooms part-time to minimise overheads.

Should I bulk bill or private bill?

Most private psychiatrists use mixed billing models. Pure private billing maximises income but limits patient access. Bulk billing ensures accessibility but significantly reduces income – you’d need to see 40+ patients weekly to match private practice earnings. Many psychiatrists bulk bill concession holders or long-term patients while private billing others.

AHPRA Registration & Compliance

Do I need AHPRA registration to practise as a psychiatrist in Australia?

Absolutely. You must be registered with AHPRA as a medical practitioner with specialist recognition in psychiatry. The title “psychiatrist” is legally protected under the Health Practitioner Regulation National Law Act 2009 and cannot be used without current registration. Practising without this registration (and calling yourself a Psychiatrist) is a criminal offence.

What happens if my registration lapses or I practise without current registration?

If your registration lapses, you must stop practising immediately. This includes seeing patients, prescribing medication and calling yourself a psychiatrist. Practising while unregistered can lead to fines up to $60,000 and loss of indemnity insurance cover. AHPRA may also impose conditions when you reapply.

Can I use the title “psychiatrist” if I am trained overseas?

No. You can only do so after you complete the Royal Australian and New Zealand College of Psychiatrists assessment, meet AHPRA’s registration requirements and complete any additional supervised practice or exams. Until then, using the title “psychiatrist” is not legal in Australia.

Do I need ongoing CPD requirements to maintain registration?

Yes. You must complete at least 50 hours of continuing professional development every year, as required by the Medical Board of Australia. Keep detailed evidence such as certificates and peer reviews, as AHPRA may audit your CPD activities.

Do I need separate registration to practice across State borders?

No. Your AHPRA registration allows you to practice throughout Australia. However, you must notify AHPRA of your practice locations and comply with local Mental Health Acts and Schedule 8 prescribing rules. You should also inform your insurance of your practice scope across States.

Scope of Practice and Professional Boundaries

What activities fall outside my scope as a psychiatrist versus a psychologist?

Psychiatrists can prescribe medication, order medical tests, admit patients and provide medical treatments. Psychologists focus on therapy and psychological assessments, but cannot prescribe medication. You should only offer therapies and tests you are trained and certified to perform.

Can I prescribe medication without a formal diagnosis?

Yes, but only in urgent situations and with proper documentation. You should explain the reasons to your patient, obtain informed consent and aim to reach a formal diagnosis as soon as possible. Prescribing without a clear assessment increases your legal risk.

Am I allowed to refuse to treat a patient or terminate treatment?

Yes. You may refuse or withdraw treatment for legitimate clinical reasons such as patient non-compliance, threatening behaviour, or treatment outside your expertise. You must provide reasonable notice, help the patient find alternative care and avoid patient abandonment.

Can I treat family members or friends as patients?

It is not recommended. Personal relationships can affect your objectivity and clinical judgement. If you must treat someone in an emergency, transfer care as soon as possible and document everything clearly.

Mandatory Reporting Obligations

When must I break confidentiality to report child abuse or neglect?

Psychologists must report suspected child abuse or neglect if they have a reasonable belief, it has occurred or is likely to occur. This applies to children under 18 and includes physical, sexual, emotional abuse and neglect. Reports must be made promptly to the relevant child protection authority, usually within 24 to 48 hours. This legal duty overrides all patient confidentiality.

What is my duty to warn if a patient threatens to harm someone or themselves?

If a patient makes a serious and specific threat to harm an identifiable person or themselves, you must take reasonable steps to protect the potential victim. This might include warning the person at risk, contacting police, arranging involuntary admission or increasing treatment. Always document your risk assessment and actions thoroughly.

Am I required to report colleague impairment or misconduct?

Yes, if you reasonably believe a health practitioner has engaged in notifiable conduct such as intoxication, sexual misconduct or serious professional breaches, you must notify AHPRA within seven days. The report must be written, and you are protected if made in good faith.

Do I have to report past abuse or only current or ongoing situations?

Mandatory reporting laws vary by State. Generally, you must report historical child abuse if the victim is still a minor or if the perpetrator has access to children. Reporting adult survivors of historical abuse is usually not mandatory unless there is an ongoing risk to others. Always check local laws and document your decisions.

What are the penalties if I fail to make a mandatory report?

Penalties can include fines ranging from $5,000 to $50,000, imprisonment of up to two years, and professional sanctions such as suspension or conditions on your registration. You could also face civil liability if harm results from failure to report.

Privacy, Confidentiality and Record-Keeping

When can I legally break patient confidentiality?

You may breach confidentiality only when there is a legal requirement or a serious risk to health or safety. This includes situations involving imminent suicide risk, threats to others, mandatory reporting of abuse, court orders, notifiable diseases or with the patient’s consent. Always keep disclosures limited and well documented.

How long must I keep patient records, and how should I store them?

Most States require records to be kept for seven years after the last entry for adults. For minors, keep records until they turn 25 or for at least seven years, whichever is longer. Queensland and Tasmania require ten years of retention. Records must be stored securely, whether paper or electronic, and destroyed safely after the retention period.

Can patients access their psychiatric notes, and what can I withhold?

Patients have a right to access their health records under the Privacy Act. You can only withhold information if releasing it poses a serious risk to health or safety, breaches another person’s privacy or involves legally privileged content. Respond within 30 days and provide written reasons for any withheld information.

What information can I share with other healthcare providers?

You may share relevant clinical information with healthcare providers directly involved in the patient’s care. If the provider is not part of the care team, obtain the patient’s consent before sharing. Use secure communication channels and document what was shared and why.

Do I need patient consent to record sessions or take notes?

You do not need specific consent to take clinical notes during routine care. However, audio or video recordings require the patient’s written permission. You must explain the purpose, how the recording will be stored, how long it will be kept and the patient’s right to refuse without affecting their care.

Professional Liability and Risk Management

What insurance do I need to protect against malpractice claims?

Maintain medical indemnity insurance covering all aspects of your psychiatry practice, including prescribing, involuntary treatment and electroconvulsive therapy if relevant. At least $20 million cover is recommended, including legal defence costs and retrospective cover. Higher limits may be needed for high-risk or private hospital settings.

How do I minimise my risk when prescribing high-risk medications?

Conduct thorough assessments, document a clear risk-benefit analysis and obtain written informed consent, especially for off-label or high-risk prescriptions. Follow monitoring protocols, start with the lowest effective dose and schedule regular reviews. Clearly explain side effects and record all prescribing decisions.

Should I get separate insurance for involuntary commitment decisions?

Most medical indemnity policies cover decisions under your relevant state Mental Health Act, but check your policy for tribunal representation, emergency assessments and interstate practice. If you work regularly in acute or emergency settings, consider additional coverage. Document involuntary decisions thoroughly.

State-by-State Variations

Do mandatory reporting thresholds differ between Australian States?

Yes. Some States require “reasonable suspicion” while others require “reasonable belief” to report abuse or harm. Reporting timeframes and definitions of harm also vary. For example, Victoria includes exposure to family violence. Review your State laws where you provide your services and document your decisions.

Which States require reporting of elder abuse?

Only South Australia mandates reporting elder abuse for health professionals. Other States either encourage reporting or include it under ethical duties. Queensland, Western Australia and the Northern Territory require mandatory reporting of elder abuse in institutional settings. Use safeguarding services when appropriate.

How do Mental Health Act provisions vary across States?

Mental Health Acts differ across jurisdictions, including who can authorise involuntary treatment, treatment order durations, review processes and use of seclusion or restraint. Most States require you to notify the Chief Psychiatrist of specific incidents like suicide attempts or aggression. Familiarise yourself with your local Act and requirements.

Do I need separate registration or licences for each State I practise in?

No. Your AHPRA registration covers the whole country. However, you must still comply with local laws such as the Mental Health Act, Schedule 8 prescribing regulations, and hospital credentialing. You do need to ensure your insurance covers the States you are practising.

Required Legal Agreements and Notices

What are the key legal considerations when starting a private psychiatry practice?

Key legal requirements include:

• Obtaining appropriate medical indemnity insurance
• Registering for an ABN and provider numbers
• Ensuring AHPRA registration is current
• Setting up Medicare and health fund billing
• Establish compliant patient record systems
• Privacy policies meeting APP standards
• Informed consent procedures
• Mandatory reporting protocols
• Practice location zoning laws
• Disability access requirements
• Local council health regulations
• Employment contracts for hiring staff
• Appropriate WorkCover insurance

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

Essential legal agreements and notices include:

• Patient intake forms, compliant with privacy laws
• Written consent forms for treatment and medication
• Terms of service, including details of your fees, cancellation policy, confidentiality, communication boundaries and complaints procedures

Display your AHPRA registration details in your clinic and online.

Do I need written consent forms for treatment and medication?

Yes, written consent is essential for psychiatric diagnoses, prescribing medication and treatments such as electroconvulsive therapy. Consent forms should detail the diagnosis, treatment options, risks, side effects and the patient’s right to withdraw consent. Assess and document the patient’s capacity to consent.

What privacy notices do I need to display or provide?

You must comply with the Australian Privacy Principles and also the collection of sensitive information requirements when you collect health and medical information. Provide a Privacy Policy to patients or publish it online. Include sensitive health collection notices explaining why data is collected, how it will be used and who it may be shared with. If you use cookies or offer telehealth, disclose these privacy practices as well.

Should I have a practice agreement or treatment contract with patients?

Yes. A treatment agreement helps set expectations and clarify your policies. Include your approach to care, communication boundaries, billing, cancellations, after-hours contact and emergency care. Get the patient’s acknowledgement in writing and keep a copy.

What policies do I need regarding fees, cancellations, and after-hours contact?

Provide a clear fee schedule and cancellation policy before treatment starts. Outline billing methods, cancellation notice requirements and charges for missed appointments. Explain how you manage emergencies outside business hours and make this information easily accessible.

What business structure should I choose for my practice?

Most psychiatrists operate as sole traders or through a Pty Ltd company structure. A sole trader is the simplest but offers no asset protection. A Pty Ltd company provides liability protection and potential tax benefits, but requires more compliance. Partnerships work for group practices but require detailed partnership agreements.

Consult an accountant familiar with medical practices, as the optimal structure depends on your income level, asset protection needs, and whether you’re joining an existing practice.

Telehealth and Coaching Services

What legal notices and disclaimers do I need when listing on mental health apps like BetterUp?

Include disclaimers that services are for Australian residents only, state your AHPRA registration, and clarify the app’s role versus your professional responsibilities. Explain telehealth limits, data privacy practices and that emergency services are not available via the app. Confirm your insurance covers platform work.

If you need help offering telehealth psychiatry services, then contact Legal123.

Can I prescribe medication via telehealth?

Yes, you can prescribe most medications via telehealth following a clinically appropriate assessment. However, Schedule 8 drugs (like stimulants for ADHD) have stricter requirements – some States require at least one face-to-face consultation before prescribing. You must be satisfied that a telehealth consultation provides sufficient information for safe prescribing.

What additional agreements do I need if I also offer coaching services in addition to psychiatry?

Keep coaching and psychiatry services separate. You should have different websites, agreements and practices. Use different documentation, branding and insurance for coaching. Never offer coaching as a substitute for psychiatric treatment or state that you may use your psychiatry ‘experience’ in your coaching practice. Make boundaries and roles clear to clients in writing.

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

We hope you found this Australian Psychiatrist Private Practice Setup & Legal Requirements guide helpful.

References

1. Health Practitioner Regulation National Law Act 2009 (NSW) URL
2. Children and Young Persons (Care and Protection) Act 1998 (NSW) URL
3. Australian Health Practitioner Regulation Agency, ‘What is an offence?’ (June 2025) URL
4. Medical Board of Australia, ‘Codes, Guidelines & Policies’ (April 2025) URL
5. Australian Government Attorney-General’s Department: Mandatory reporting of child abuse and neglect URL
6. NSW Government: Mandatory Reporting URL
7. Office of the Australian Information Commissioner (2023): Australian Privacy Principles (APPs) URL

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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