Kellie Cassidy: Fair work ruling for pay rise will threaten psychology services
There are grave concerns that a recently awarded pay rise for psychologists could have unintended consequences for Australians seeking psychology treatment, potentially reducing access to care in an already extremely thinly stretched, under resourced sector.
The Fair Work Commission's ruling that a range of female-dominated occupations have been 'historically undervalued' is an important correction, that will increase the pay of hundreds of thousands of workers covered by five industrial awards by up to 35 percent.
As a clinical psychologist myself, and treasurer of the Institute of Clinical Psychologists, I fully support the Commission's commitment to addressing gender pay equity. Equity in pay is a worthy and overdue goal. But equity in access to health care is just as critical — and must not become collateral damage in the pursuit of reform. Without targeted revisions and coordinated policy responses, these well-intentioned changes risk doing more harm than good.
Most private psychology clinics already pay well above award rates due to market demand and the specialised nature of the work. Even so, the proposed increases will still have a significant financial impact, especially when combined with penalty rate provisions. These increased practice costs are not supported by corresponding increases in government funding, placing unsustainable pressure on small and medium-sized businesses.
These increased costs will likely result in increased out-of-pocket fees for many Australians seeking psychology treatments, and reduced accessibility to care. Additionally, it's very likely after-hours services will be reduced due to unaffordable penalty rates and a corresponding reduced capacity to recruit and retain staff, especially in already underserviced areas, like regional and remote areas.
Standard hours for psychology clinics typically extend to 8 or 9 pm on weekdays and include Saturday sessions, with after work-school hours and Saturdays having the highest client demand.
However, the Professionals and Support Services (HPSS) Award 2020, which covers psychologists, defines 'ordinary hours' as 6am to 6pm Monday to Friday. Any work beyond this window attracts full-shift penalty rates, greatly inflating staffing costs for clinics aiming to provide client-centred, flexible care.
By contrast, professionals such as physiotherapists, osteopaths, and chiropractors work under awards with broader definitions of ordinary hours, giving them a competitive edge. Although these professions will also face increased salaries, they won't be forced to apply penalty rates to evening work in the same way.
Ironically, the proposed wage increase, when combined with penalty rate structures, are more likely to limit flexible work arrangements for psychologists, 80 per cent of whom are women. The proposal is likely to inadvertently hinder workforce participation for the very demographic it aims to support.
But this isn't to say the new award rates aren't workable. At the ICP, we believe some amendments to the HPSS Award are necessary to provide continuity of, and access to care.
While the aim of the proposed changes is to be applauded, the day-to-day operational realities of private allied health practices need to be properly considered, and we can't afford to further limit Australians access to psychological treatment, at a time that they've never been more in demand.
Dr Kellie Cassidy is a Clinical Psychologist and Treasurer of the Institute of Clinical Psychologists
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