4 key trends shaping the counselling and mental health industry in 2026

The mental health industry in Australia is undergoing a huge evolution in 2026. Demand for mental health services is surging, and delivery is diversifying, while emerging ideas about social wellbeing and prevention are shaping public policy.

COVID-19 sparked a national mental health reckoning, leading to government commitments to ensure broader access to services. Since then, ongoing pressures such as cost-of-living stress, workforce shortages, and increased social isolation have further driven demand for accessible mental health care. In response, governments have expanded investment in mental health services, while community-based and digital supports have grown rapidly.

Together, these shifts have created new and flexible pathways into the mental health sector, opening opportunities for individuals seeking a meaningful career transition.

Current landscape of the counselling and mental health industry

Demand for services is huge and growing, with around 42.9% of Australians aged 16-85 reporting having experienced a mental illness at some point of their lives. In 2023-24, about 2.7 million Australians (roughly 10% of the population) received 12.6 million Medicare mental health services.

A wide range of general and specialised mental health workers provide these important services. In 2022–23, an estimated 68,000 professionals (including nurses, psychologists, occupational therapists, social workers, counsellors and psychiatrists) were working across Australia. While this may seem large, there’s an estimated shortfall of 34-42% of mental health professionals needed to meet current and future demand.

The 4 key trends to watch in 2026

1. Growing demand for mental health professionals across diverse settings

According to the Australian Government’s strategic projections, there is an urgent need to train tens of thousands of new mental health workers over the next decade. Demand for mental health professionals is rising not just in private practices, but also in schools, community organisations, workplaces, aged care, hospitals and other settings; and particularly in rural areas.

Mental health professionals can choose from a huge variety of roles across these diverse settings. Some high-demand growth roles in the mental health industry over the next five years include:

• Counsellors
• Youth Workers
• Community Workers
• Workplace Wellbeing Consultant
• Mental Health Support Worker
• NDIS Support Coordinator
• Mental Health Nurses
• Psychiatrists and Psychologists
• Peer Support Workers
• eMental Health Coaches
• School Wellbeing Officers

The diversity of roles in high demand means there are many entry points and qualifications for professionals interested in testing out a career in the industry. A Diploma of Counselling and Communication Skills or an Undergraduate Certificate of Mental Health can provide a starting point for career-changers, young professionals or for those already working in allied health or community services who want to upskill.

2. Evolving understanding of community wellbeing and prevention

Mental health is increasingly recognised as intersecting with structural and community issues, such as indigenous or LGBTQI exclusion, and is strongly shaped by the social, economic, and community environments. In 2026, funding and development of early intervention and ‘no-referral’ community-based services are expanding, with a focus on supporting wellbeing before challenges escalate into crisis.

Counsellors and other mental health workers are increasingly working alongside communities to help people build coping skills, deepen their understanding of mental health, and feel supported in ways that respect their culture and individual life experiences. Courses like the Diploma of Health and Wellbeing can help you develop an understanding of the environmental, physical and social determinants influencing mental health and wellbeing.

3. Blended counselling models: digital, telehealth and in-person

Technology is continuing to shape how mental health services are delivered, with blended models of care now firmly embedded across the sector. Telehealth and crisis response lines play a crucial role, particularly for young people and people in regional communities. Digital platforms and AI tools will play an increasing role in expanding access to services while complementing (rather than replacing) in-person support.

In this technologically evolving field, professionals must be digitally literate and confident communicators able to work across multiple formats. The Diploma of Counselling and Communication Skills, emphasises strong communication and referral abilities while also building practical digital skills such as using telehealth platforms, managing client records electronically, and delivering online support across different settings.

4. More flexible pathways into mental health from other fields

As demand for mental health workers grows, so too do the pathways into the industry. In 2026, people are entering mental health careers from a wide range of backgrounds, looking for meaningful new directions in life. Career-changers are supported by shorter, practical and ‘stackable’ qualifications that allow them to test their interest, upskill or transition careers quickly. These kind of low commitment qualifications allow professionals to keep the option of bachelor-level study open later, while entering the workforce sooner.

For example:

• The Diploma of Counselling and Communication Skills offers a pathway straight into diverse industry roles or into a Bachelor of Counselling.
• The Undergraduate Certificate of Mental Health is ideal for career changers from other fields who are unsure if they want to commit to a full degree, and offers a low-commitment entry point with credit towards a Bachelor of Psychological Science.

As the counselling and mental health industry continues to evolve in 2026, demand is growing across diverse roles and settings. For those looking to enter the field, transition into a new career or upskill, the Diploma of Counselling and Communication Skills and Undergraduate Certificate of Mental Health offer flexible pathways into this important industry.