Daniel had worked for eleven years as a claims assessor for an insurance company, spending his days on the phone with people navigating some of the worst moments of their lives — house fires, car accidents, sudden illness. When the insurer introduced an AI claims triage system that could process and route most claims without a human assessor ever picking up the phone, his team was cut from twenty-two people to four almost overnight. What Daniel had always been quietly good at, and what no chatbot could touch, was the human part of those calls: the moment someone stopped reciting facts and started talking about how frightened or overwhelmed they actually were, and he knew how to sit with that. He’d been studying counselling part-time for two years already, and losing his job simply removed the last excuse for not finishing the diploma and opening a private practice.

Therapeutic work depends on something AI cannot fake convincingly over time: a trusting, attuned human relationship where a client feels genuinely seen, held to account gently, and safe enough to be honest. A chatbot can offer scripted reassurance, but it cannot build the kind of rapport that lets someone finally say the thing they’ve never said out loud, or notice the subtle shift in a client’s tone that signals they’re not coping as well as their words suggest. That depth of human trust and empathy is exactly why private counselling practice remains such a resilient, human-centred business to build. This post covers what’s actually required to set up as a counsellor in Australia — registration and credibility, the business essentials, realistic costs, how to find your first clients, and a 90-day plan to get started.

What Does It Take to Start a Private Counselling Practice?

Unlike psychology, counselling is not a protected title in Australia — legally, anyone can call themselves a counsellor regardless of training. That lack of regulation makes registration with a recognised professional body enormously important, not because it’s legally required, but because it’s how you establish credibility with clients, referrers and insurers. The two main bodies are the Australian Counselling Association (ACA) and the Psychotherapy and Counselling Federation of Australia (PACFA). Registration with either signals a verified qualification, adherence to a code of ethics, and ongoing professional development — and it’s often a prerequisite for professional indemnity insurance and for being accepted onto EAP provider panels or counselling directories.

Be realistic about Medicare from the outset: rebates under the Better Access initiative are generally reserved for registered psychologists and some accredited mental health social workers and occupational therapists, not general counsellors. This means most counselling clients will be paying privately, session by session, or drawing on limited extras cover through private health insurance — some funds offer partial rebates for ACA or PACFA-registered counsellors, but it varies significantly by fund and membership level, so check current provider recognition before promising anything to prospective clients.

On qualifications, a Diploma of Counselling is the practical minimum for ACA or PACFA registration, though a Bachelor’s degree in counselling, psychology or social work — or a postgraduate qualification — will open more doors, particularly for EAP panels and higher registration tiers. Ongoing clinical supervision is a professional requirement, not an optional extra: most registration bodies mandate regular supervision hours, and beyond the compliance box-tick, supervision is genuinely how you stay safe and effective in emotionally demanding work. Be honest with yourself, too, about the emotional load of this profession — vicarious trauma and burnout are real risks, and building your own self-care practices, a support network of peers, and firm boundaries around your caseload are as much a part of “setting up the business” as your ABN.

Setting Up the Business

Register for an ABN through the Australian Business Register before you take your first paying client. Most solo counsellors start as sole traders, which is straightforward and low-cost, though it’s worth a conversation with an accountant about a company structure if you’re planning to eventually bring on associate counsellors or run group programs.

Complete or confirm your registration with the ACA or PACFA — check the specific membership tier requirements carefully, as they differ in required qualifications, supervised hours and ongoing CPD obligations. Professional indemnity insurance and public liability insurance are essential from day one; most counselling bodies have arrangements with preferred insurers offering member discounts, and you should not see clients without cover in place.

Premises deserve real thought. A rented consult room needs genuine acoustic privacy — thin partition walls in a shared office are a real risk to client confidentiality and trust, so test the soundproofing yourself before signing a lease, or budget for simple acoustic treatment. Telehealth counselling has become widely accepted and normal since 2020, and a proper telehealth setup — a quiet, private room, reliable video software, and a clear no-interruptions protocol — can let you start seeing clients with minimal upfront property cost. Many counsellors run a hybrid practice, offering telehealth as standard with an in-person room available for clients who prefer face-to-face sessions.

What It Costs to Get Started

Counselling has a relatively low barrier to entry compared to many small businesses, but budget properly for these essentials:

  • Practice management and telehealth software (booking, secure video, notes, invoicing): $40–$150 per month
  • Professional indemnity and public liability insurance: $400–$1,200 per year
  • ACA or PACFA registration and annual membership fees: $250–$500 per year
  • Clinical supervision (ongoing, often fortnightly or monthly): $100–$200 per session
  • Consult room rental (casual or part-time lease): $25–$80 per session, or $6,000–$15,000 per year for a dedicated part-time space
  • Website, directory listings and marketing materials: $1,000–$4,000
  • Basic acoustic treatment or soundproofing for a rented room: $300–$1,000

A realistic total start-up budget sits between roughly $3,500 and $10,000, especially if you begin primarily via telehealth and add a physical consult room once your caseload justifies the ongoing cost. Keep a personal cash buffer for the first few months, since building a steady referral base and client waitlist typically takes longer than people expect.

Finding Your First Customers

GP mental health referral pathways are a major source of clients, particularly through Mental Health Treatment Plans — while the Medicare rebate itself usually goes to psychologists, many GPs are still glad to refer privately-paying clients to a registered counsellor when their books are full or when a client’s needs suit counselling rather than clinical psychology. Building genuine relationships with a handful of local GP clinics, and following up professionally after each referral, pays off over time.

Employee Assistance Program (EAP) provider panels are one of the most reliable channels for steady referral volume — getting accepted onto an EAP panel usually requires ACA or PACFA registration and can provide a consistent stream of workplace-referred clients, particularly valuable while you’re building your own client base. Relationships with psychologists are worth cultivating too, since many psychologists have waitlists and will refer clients whose needs are better matched to counselling. Community health networks, local neighbourhood centres and church or community groups are another strong, often overlooked channel, especially for accessible, lower-cost community counselling. Finally, invest in a well-optimised Google Business Profile and list yourself on established counselling directories — the Australian equivalent of Psychology Today-style listings, along with the ACA and PACFA’s own public “find a counsellor” directories, are frequently how clients search when looking for support privately.

Common Mistakes First-Time Owners Make

  • Starting without ACA or PACFA registration, which limits credibility, insurance options and EAP panel eligibility from the outset.
  • Overpromising Medicare or health fund rebates to prospective clients, which erodes trust when the reality of counselling’s rebate limitations becomes clear.
  • Neglecting personal supervision and self-care, leading to burnout that can end a promising practice within its first year.
  • Choosing a consult room without properly testing sound privacy, risking client confidentiality and long-term trust in the practice.

Your First 90 Days

Weeks 1–2: Register your ABN, confirm your ACA or PACFA registration tier and requirements, arrange professional indemnity and public liability insurance, and set up a clinical supervision arrangement.

Weeks 3–4: Finalise your consult room or telehealth setup, build a simple website, set up your Google Business Profile, and submit applications to relevant counselling directories.

Month 2: Apply to two or three EAP provider panels, introduce yourself to nearby GP clinics and community health services, and start building relationships with local psychologists for two-way referrals.

Month 3: Review which referral channels are producing genuine bookings, refine your session pricing and any package offerings, and follow up on outstanding EAP or directory applications that haven’t yet come through.

Still deciding what’s right for you? See how the numbers stack up for start a dental clinic, allied health practice and beauty or skin clinic in our other guides.

Losing a job to automation can feel like being told your judgement and experience no longer matter — but the trust, empathy and rapport at the centre of counselling work are precisely what a machine cannot replace, and clients can tell the difference. When you’re ready to build a steady stream of enquiries, GrowOnline can help with the local research, a considered website and the marketing systems needed to keep your practice visible while you focus on the people in the room.