How to Combine Psychology With IICT-Approved Modalities

At IICT, we’re often asked: “I have a psychology degree. Can I apply for counselling insurance through IICT?”

The short answer is no. IICT cannot insure psychology qualifications under counselling or any other complementary therapy category. This is due to key differences in classification, training, scope of practice and regulation.

In this article, we’ll explain exactly why psychology and complementary therapy counselling cannot be merged for insurance purposes, and why IICT must draw a clear boundary between the two.

Psychology – an allied health profession

Psychology is classified as an allied health profession, regulated under AHPRA alongside fields such as physiotherapy and occupational therapy. To practice as a psychologist, graduates must complete postgraduate training with supervised placements before registration.

Counselling, however, is recognised as a complementary therapy modality with its own qualifications and standards. The two systems are distinct and cannot be interchanged for insurance purposes.

Scope of practice boundaries

Even if IICT were to accept psychology graduates for counselling coverage, there would be a serious practical issue: scope of practice boundaries.

Psychology graduates may unintentionally draw on diagnostic or clinical models that fall under psychology practice rather than counselling. This blurring of boundaries poses a liability risk that insurance providers cannot safely cover.

Regulatory and insurance compliance issues

Insurance providers operate on clear definitions of what a practitioner is trained, qualified and insured to do. For complementary therapy counselling, that scope is relatively straightforward: supporting clients through structured, non-diagnostic, non-medical counselling approaches.

For psychology, the scope is entirely different: psychologists are trained to assess, diagnose and treat mental health conditions under a protected title. Their practice is regulated by law and backed by allied health insurance policies.

Respecting both professions

Psychology belongs within allied health, requiring postgraduate training, AHPRA registration and allied health insurance. Counselling, as recognised by IICT, sits within the complementary therapy framework and requires specific counselling qualifications. Both are valuable, but distinct.

If, however, you are a psychology graduate who wishes to practise counselling, you must complete an IICT-approved counselling qualification to align your scope, training and insurance.

IICT’s commitment to professional standards

At IICT, our mission is to provide clarity, support and recognition for complementary therapy practitioners. That means being clear about where complementary therapy begins and where allied health professions, such as psychology, belong.

By maintaining strict boundaries between the two, we protect:

• Practitioners – by ensuring they are insured for the work they are truly qualified to perform.
• Clients – by safeguarding their care under clear professional standards.
• The industry as a whole – by upholding credibility and compliance across complementary therapies.

We encourage psychology graduates to continue along their allied health pathway. For those interested in counselling, we encourage you to pursue complementary therapy counselling qualifications. Both professions are valuable, but they must remain distinct.

At IICT, we remain committed to supporting practitioners with clarity, integrity and professional guidance. It is our aim to ensure every member is confident in their scope, their coverage and their contribution to the health and wellness community.

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Article written by: Kate Duncan, IICT

About the Author:

Kate is the Content Writer of IICT and has been a prominent voice in the wellness industry for over a decade. Kate’s experience as the editor of two Australian health and wellness magazines offers a wealth of insights into the natural health space, which she now shares with IICT. Kate has extensively studied Yoga, Ayurveda and Massage Therapy. When she’s not working, you’ll find Kate treasuring moments with her son, surfing one of Byron Bay’s beautiful breaks or spending time in nature with her family.