DVA to Fund Psychedelic Therapy for Veterans with PTSD and Depression
07 Nov 2025
Federal Government announcement this week.
The treatments involve the controlled use of MDMA for PTSD and psilocybin for TRD. These medications can only be prescribed by authorised psychiatrists under the Therapeutic Goods Administration (TGA) framework introduced in 2023 — a move that made Australia the first country to permit such prescribing.
While the decision has been both praised and debated, medical experts say it offers hope for patients who have not responded to standard treatments.
Dr Karen Spielman, Chair of RACGP Specific Interests Psychological Medicine, said GPs will play an important role in assessing suitability and supporting patients through the treatment process.
“There’s no one-size-fits-all approach to psychiatric care,” Dr Spielman said. “For people who are difficult to treat, psychedelics offer a new and hopeful option. It’s encouraging to see authorised prescribers implementing this research locally.”
The DVA has emphasised that strict eligibility criteria will apply. Funding will only be considered after multiple evidence-based treatments have failed, and prior approval from an authorised prescriber is required. The treatments will be regarded as a fourth-line clinical option.
Associate Professor Caroline Johnson, of the RACGP Expert Committee – Quality Care, said the criteria are “sensible” given the emerging evidence base.
“For GPs, it will mean knowing what constitutes an adequate trial of existing therapies and being aware of psychiatrists who are qualified to deliver these treatments in research-informed settings,” she said.
The TGA has previously said the reclassification of psilocybin and MDMA acknowledges the lack of effective options for patients with treatment-resistant mental illness. However, it also warned that patients undergoing psychedelic therapy can be highly vulnerable, and strong safeguards are essential.
The DVA described the funding as “encouraging news” for veterans who continue to experience distress despite standard care.
“This decision offers hope for those living with persistent PTSD or depression,” the department said, adding that retrospective funding applications will not be accepted.
Serving Defence Force members and veterans residing overseas are not eligible. More information about eligibility and provider guidance is available on the DVA website.
Source: Royal Australian College of General Practitioners (RACGP) / newsGP
