Many people use online therapy to make mental health support easier to access.
BetterHelp is one of the most popular options in Australia, but many wonder if these costs can be claimed through tax or a health fund.
BetterHelp subscriptions cannot be claimed on tax or through Medicare or private health insurance in Australia, because the service operates outside government‑approved mental health programs.
Those seeking to reduce therapy costs through rebates must visit providers covered under Medicare’s Mental Health Care Plan.
Traditional sessions with qualified psychologists may qualify for rebates, as explained by the Australian Taxation Office.
Some private health funds may offer limited benefits for in‑person therapy, but not for platforms like BetterHelp.
Understanding how online therapy fits within Australia’s tax and health systems helps individuals make informed choices about their care and finances.
Knowing what qualifies for a deduction or rebate helps avoid confusion and unnecessary costs.
Key Points
- BetterHelp subscriptions are not tax‑deductible or covered by health insurance in Australia.
- Only approved services under Medicare or private health plans may offer rebates.
- Checking government and insurer rules prevents costly misunderstandings.
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Can I Claim BetterHelp Australia on Tax?
People in Australia who use BetterHelp often ask if they can include their online therapy costs in a tax return or through private health insurance.
The answer depends on how the Australian Taxation Office (ATO) classifies digital mental health services, the therapist’s professional status, and whether the therapy meets specific medical or professional recommendations.
Eligibility for Tax Deductions and Rebates
The ATO generally treats therapy expenses as personal costs unless a medical practitioner recommends the treatment as part of a care plan for a diagnosed condition.
To meet eligibility standards, a taxpayer must receive therapy from a registered psychologist or other accredited professional with recognized qualifications, such as a master’s degree in clinical psychology.
Therapy expenses that meet these criteria can sometimes qualify as medical expenses for tax purposes.
However, the ATO removed most broad medical expense tax offsets, so the potential claim depends on the taxpayer’s income and the nature of the service.
According to Body & Soul, most wellness-related services, such as general counselling or massage, are considered private and not tax deductible.
Taxpayers seeking to claim therapy sessions must ensure they receive treatment for a medical purpose rather than general well-being or personal development.
If the therapy is prescribed under the Better Access initiative, participants can instead pursue Medicare rebates through an eligible provider.
BetterHelp and Private Health Insurance Coverage
Unlike in-person therapy in the Victorian public mental health system, BetterHelp’s telehealth platform operates independently of Medicare providers in Australia.
Most private health insurers will not cover therapy delivered by professionals outside the country, even if they hold international credentials.
Private health funds generally require therapists to be accredited in Australia and registered with a recognized board such as the Australian Health Practitioner Regulation Agency (AHPRA).
Because BetterHelp operates with therapists credentialed in various jurisdictions, its professionals may not meet local eligibility standards for rebates.
If a taxpayer uses private health insurance with mental health extras, they should confirm whether their policy includes reimbursement for online therapy or telehealth psychology sessions.
The ATO does not consider reimbursed expenses deductible, so any covered amount by insurance cannot also be claimed as a tax deduction.
Ad, keeps our community free. The perspectives presented on this website are genuinely our own and we do not accept money for reviews.
4.5 (7,802+) FROM TRUSTPILOT
BetterHelp
Fill out a brief questionnaire and get matched with an experienced therapist online in as little as 24 hours.
✓ Over 35K credentialed professionals
✓ Subscriptions as low as 70 USD/week, billed every four weeks
✓ Financial aid & HSA/FSA
✓ Cancel plan or change therapist anytime
✓ 20% off your first month through Therapy Helpers
ATO Guidelines on Claiming Online Therapy
The ATO’s deduction guidance defines when therapy expenses may apply to income tax.
Generally, employees cannot claim deductions for personal counselling or therapy unless the sessions directly relate to earning income—for example, if a psychologist uses supervision sessions as a professional development requirement.
BetterHelp’s services fall under personal mental health expenses, so individuals who use the platform for help managing anxiety, feeling overwhelmed, or improving well-being cannot claim these as deductions.
However, therapy recommended by a qualified medical practitioner may still be eligible for a partial medical expenses offset under specific conditions.
Any claim must satisfy both the ATO’s proof requirements and its definition of a medical or work-related expense.
It is recommended that taxpayers obtain clear documentation from their registered psychologist outlining the therapeutic purpose for medical treatment.
Claiming Therapy Expenses: Documentation and Proof
Taxpayers who believe their online therapy qualifies for inclusion on a tax return must maintain accurate records of payment.
The ATO expects receipts to list the therapist’s full name, qualifications, registration number, and practice details.
A receipt from BetterHelp that does not identify an Australian-registered provider may not meet this standard.
The notice of assessment from the ATO will reflect any accepted deductions, so comprehensive documentation is essential if a claim is reviewed.
For example, under the principles discussed on Aus Legal Hub, individuals should keep invoices, medical referrals, and written proof showing the therapy was medically necessary.
It is also wise to note that digital receipts or auto-billing emails are not substitutes for official invoices with professional identifiers.
In cases where the therapist is not locally accredited, the ATO will typically disallow the claim.
Seeking advice from an accountant familiar with therapy-related tax matters can help avoid rejection and ensure compliance with ATO expectations.
Health Funds, Private Health Insurance, and Tax Benefits
Australians who pay for health insurance or use online mental health services may receive financial relief through rebates, premium reductions, or tax offsets.
How these benefits apply depends on a person’s income, policy type, and whether their health cover qualifies under Australian Government standards.
Health Fund Coverage for Online Therapy Services
Health funds in Australia recognize the growing demand for online mental health care.
Some health insurers include benefits for telehealth therapy under extras cover if the provider meets required credentials and the service falls within approved categories.
However, BetterHelp in Australia is often viewed as an international platform, which may limit rebate eligibility under most private health insurance policies.
Members should check whether their insurer covers psychotherapy, psychology, or counselling through online means.
Many funds list eligible item numbers, session limits, and annual benefit caps.
These details appear in the policy’s product disclosure statement.
If therapy is not covered, users might still claim costs as medical expenses in limited situations, but most individual therapy sessions do not qualify for a direct tax deduction.
Services paid for privately without a Medicare or health fund rebate usually remain outside the scope of tax claims.
Understanding Private Health Insurance Rebates
The Australian Government Rebate on Private Health Insurance reduces the cost of premiums based on a person’s income tier and family status.
This rebate can be applied as a premium reduction through a health insurer or claimed later as a refundable tax offset when lodging the tax return with the Australian Taxation Office (ATO).
For example, people earning above the set family threshold receive a lower percentage rebate.
The rebate rate also changes with age, with higher entitlements for older policyholders.
Policies that qualify must be complying health insurance policies, covering hospital or general treatment services.
You can find more practical information about tax advantages of health insurance through the TaxShark overview of how health insurance lowers taxable income.
The rebate entitlement is calculated automatically by the insurer or ATO, depending on how it’s claimed during the financial year.
Medicare, MLS, and Tax Offsets
Australia’s Medicare Levy Surcharge (MLS) applies to higher-income earners who do not hold an eligible private patient hospital cover.
This is separate from the standard Medicare levy, which all taxpayers pay to support public healthcare.
Maintaining private hospital cover helps avoid the MLS and can lower overall tax liability.
The government sets income thresholds that determine whether an individual or family pays the surcharge.
Those under the threshold with private health cover receive no direct benefit from avoiding the MLS but may benefit from shorter hospital waiting times and more treatment choices.
The KFF brief on tax subsidies for private health insurance explains how tax preferences can impact both individuals and government revenue.
In Australia, similar principles apply through subsidies like the health insurance rebate and exemptions from the Medicare Levy Surcharge.
Private Health Insurance Statements and Claim Codes
At the end of each financial year, every private health insurer issues a Private Health Insurance Statement to policyholders.
This document contains details such as tax claim codes, rebate percentages, and total premium payments made during the year.
The statement is essential when completing the tax return.
It helps the ATO apply the right benefit code and confirm a person’s income for surcharge purposes.
For example, Code A indicates full rebate entitlement via premium reduction, while Code C means the rebate will be claimed later through the tax return.
Each dependent child or person covered under the policy affects the income test outcome, which can adjust both rebate and MLS status.
Keeping the insurance statement and confirming details with your health insurer ensures accuracy in reporting and compliance with ATO requirements.
BetterHelp 2026: Latest Updates on Insurance, Access & Mental Wellness Insights
Insurance & Financial Accessibility
• BetterHelp online therapy costs around $70-100 per week billed on a monthly or weekly basis, or an average co-pay of $23 per session for insurance-eligible members. www.betterhelp.com/online-therapy
• BetterHelp is currently working with insurance carriers to expand coverage across the United States. Check back to see when your state gets added. (Currently available in-network in 21 states) www.betterhelp.com/insurance
• 137,000+ people used HSA/FSA to pay for BetterHelp in 2024. Use your FSA/HSA debit card like any other debit or credit card on the payment page to pay directly for your therapy sessions. www.betterhelp.com/hsa-fsa-for-therapy
Privacy & Security
• Full data rights: request copy or permanent erasure directly in account settings. HIPAA Notice of Privacy Practices applies to PHI for insured members.
• BetterHelp.com recently received HITRUST certification, recognized as the industry gold standard for information protection and assurance. www.betterhelp.com/privacy
State of Stigma (May 2025)
• BetterHelp’s first global State of Stigma Report (May 2025) surveyed 16,000+ people across 23 countries: 76% agree mental health care resolves personal problems, ~75% say seeking support is wise, yet nearly 3 in 4 see societal attitudes as discouraging, and ~60% hesitate due to stigma. Gen Z faces higher barriers (e.g., 37% view therapy seekers as “mentally weak,” 56% mild/moderate anxiety). References 2024 outcomes (72% symptom reduction) without new stats. www.betterhelp.com/state-of-stigma-report-2025
Social Impact
• The Future of Mental Health Scholarship awards 10 college students studying psychology or related fields with $10,000 each towards their education. www.betterhelp.com/social-impact
Feel Lighter Campaign & Strava Partnership
• BetterHelp’s “Feel Lighter” global campaign (launched early 2026) promotes therapy as preventative mental wellness (“gym for the mind”), featuring an active Strava partnership where users logging activity challenges (e.g., 100 minutes in set periods) receive 30% off their first month of therapy. www.betterhelp.com (homepage or blog for current promotions)
Note: Insurance, pricing, and aid availability vary by location — always confirm the latest details on the linked pages.
Frequently Asked Questions
Australians often wonder how online counseling platforms like BetterHelp fit into the country’s tax and health insurance systems.
Understanding what can and cannot be claimed helps individuals plan and manage their mental health expenses wisely.
Is BetterHelp therapy tax-deductible in Australia?
BetterHelp sessions are not generally tax-deductible in Australia.
The Australian Taxation Office classifies these services as personal expenses rather than medical ones.
Since BetterHelp is not recognized under Medicare or by private health funds, users must pay the full amount themselves.
According to a recent review, BetterHelp in Australia isn’t included in Medicare or private health insurance.
This means therapy costs are out-of-pocket and not eligible for tax offsets.
What medical expenses are eligible for tax claims in Australia?
The Australian government removed the general tax offset for medical expenses in 2019.
Only specific costs related to disability aids, aged care, or attendant care are now eligible for limited offsets.
Routine medical or therapy treatments, including counseling, typically no longer qualify.
People seeking mental health support may still access rebates for approved psychologists or psychiatrists through Medicare’s Better Access program if they receive a referral from a general practitioner.
Can private health insurance be claimed on taxes in Australia?
Private health insurance itself cannot be claimed as a tax deduction.
However, individuals may receive benefits through a rebate or tax offset that helps reduce premium costs or income tax liability.
Australians can choose to claim the rebate upfront through their health insurer or as a credit in their annual tax return, as outlined on Insurance Informant’s guide to claiming health insurance on tax.
Are online therapy sessions eligible for tax deductions or health fund claims?
Online platforms like BetterHelp aren’t covered under Australian health funds or Medicare, making their expenses ineligible for either tax deductions or insurance rebates.
Traditional therapy sessions may still qualify for rebates if provided by a registered psychologist with a valid referral.
This means users of international online therapy services, even when living in Australia, pay the full session cost independently.
How does claiming health insurance on taxes work?
When individuals purchase eligible private health insurance, they may be entitled to a rebate based on income, age, and coverage level.
The rebate can be applied directly to the premium or claimed as a refundable tax offset when lodging an annual return.
The Australian Taxation Office automatically calculates this rebate when people report their policy details in their tax documents.
This requires no separate paperwork for most taxpayers.
No. The Australian Taxation Office does not allow claims of medical or health-related expenses without valid supporting evidence.
The $300 threshold sometimes mentioned applies only to work-related expenses, not to general health or therapy costs.
All tax claims must be supported by records or invoices showing the nature of the expense and proof of payment.
