How to Start a Psychiatry Private Practice in Australia: Legal Requirements & Documents

Last updated: 17 January 2026

Click on any of the questions below to jump to that section of this ‘How to Start a Psychiatry Private Practice in Australia’ guide. Click this link to go to our Legal Guide for Psychologists or this link for our Legal Guide for Counsellors.

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Legal Documents Every Psychiatry Practice Needs

Beyond clinical compliance, you need specific legal documents in place before seeing private patients. Government guidelines tell you what’s required – but they don’t give you the actual agreements, policies, and forms. Here’s the complete checklist.

What legal documents do I need for a psychiatry private practice?

Every psychiatry practice needs these documents in place.

Patient-Facing Documents:

• Treatment Agreement / Terms of Service – Covers fees, payment terms, Medicare billing, cancellation policy, communication boundaries, after-hours protocols, and termination of care. Patients should acknowledge this before the first consultation.
• Privacy Policy – Must comply with Australian Privacy Principles (APPs) and include specific statements required for collecting health and sensitive information.
• Patient Intake Form – Collects demographics, emergency contacts, GP details, current medications, and relevant history. Must include the required privacy collection statement.
• Informed Consent Form (General) – Documents patient understanding of psychiatric treatment, confidentiality limits, and their rights.

Treatment-Specific Consent Forms:

• Medication Consent Form – Required for prescribing, especially for high-risk or off-label medications. Documents risks, benefits, side effects, and monitoring requirements.
• ECT Consent Form – Specific consent for electroconvulsive therapy with detailed risk disclosure.
• Involuntary Treatment Documentation – State-specific forms required under Mental Health Acts.

Practice Policies:

• Fee Schedule – Clear documentation of consultation fees, Medicare rebates, gap amounts, and payment terms.
• Cancellation and No-Show Policy – Typically requires 24-48 hours’ notice. Can be part ofthe Treatment Agreement.
• After-Hours and Crisis Policy – Documents what patients should do outside business hours and in emergencies.
• Record Retention Policy – Internal document specifying how long records are kept and secure destruction procedures.

Business Documents:

• Room Rental Agreement – If renting consulting rooms
• Employment Contracts – For reception/admin staff
• Contractor Agreements – For locum or associate arrangements

Display Requirements:

• AHPRA registration number visible to patients
• The complaints process information is accessible
• Privacy Policy available on request or website

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

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 the requirements for the collection of sensitive information when collecting health and medical information. Provide a Privacy Policy to patients or publish it online. Include sensitive health collection notices that explain 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 written acknowledgement 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.

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.

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.

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 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.

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.

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.

Practice Economics & Business Considerations

How much do private practice psychiatrists earn in Australia?

Private practice psychiatrists in Australia typically earn $300,000-$500,000 annually, with a range from $200,000 for new entrants to $600,000+ for established specialists with full books.

Your actual income depends on:

• Fee structure: $400-$600 for initial consultations, $250-$350 for reviews
• Patient volume: Full-time private = 25-35 patient hours/week
• Billing model: Pure private billing maximises income; bulk billing significantly reduces it
• Practice costs: $80,000-$150,000 annually in overheads

For context, Medicare rebates cover only about $260 for initial appointments and $130 for reviews – patients face high out-of-pocket costs unless you bulk bill.

Note: These figures are for established practitioners. First-year private practice income is typically lower while building a referral base.

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.

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.

Professional Liability and Insurance

What medical indemnity insurance do psychiatrists need for private practice?

Psychiatrists in private practice need a minimum of $20 million professional indemnity cover. Your policy must include:

• Coverage for all clinical activities: consultations, prescribing, treatment recommendations
• Specific cover for ECT if you provide it
• Coverage for involuntary treatment decisions under the Mental Health Acts
• Telehealth consultations
• Medicolegal reports and court appearances, if relevant
• Run-off cover (tail cover) for claims made after you stop practising
• Legal defence costs

Most medical indemnity providers offer psychiatry-specific policies. Expect to pay $8,000-$15,000 annually, depending on your scope of practice. If you do forensic work, medicolegal assessments, or work in acute/emergency settings, you may need higher limits or additional coverage.

Key providers include: MIPS, MDA National, Avant, and MIGA.

Compare policies carefully – coverage for involuntary commitment decisions and tribunal representation varies significantly between providers.

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.

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?

Psychiatrists must keep patient records for a minimum of 7 years after the last consultation for adult patients. For patients who were minors at the time of treatment, records must be kept until they turn 25 or for 7 years after the last consultation – whichever is longer.

Queensland and Tasmania require ten years of retention. Records must be stored securely, whether in paper or electronic form, 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.

Mandatory Reporting

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 that 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 7 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.

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 as an ethical duty. 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, the duration of treatment orders, review processes, and the 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 requirements. You do need to ensure your insurance covers the States you are practising.

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 How to Start a Psychiatry Private Practice in Australia guide helpful.

Related Legal Guides

• Legal Guide for Psychologists
• Legal Guide for Counsellors and Therapists
• How to Write a Privacy Policy
• How to Choose the Right Business Structure

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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