The Australian Government's Better Access to Mental Health Care initiative introduced mental health reforms that included the availability of Medicare-funded psychology services. The mental health initiative has resulted in a huge uptake of these services, demonstrating the strong community demand for psychological treatment. The initiative has also had a substantial impact on the profile of the psychology profession. After a full year of implementation, analysis of the impact of the availability of funded psychology services identified a number of issues and challenges. However, it is evident that the inclusion of these services under Medicare has been a most important advance for the psychology profession and the mental health of the Australian community. (Contains 1 figure.)