BCACC’s GST Exemption for Mental Health Services
Author(s): Scott Douglas Jacobsen
Publication (Outlet/Website): The Good Men Project
Publication Date (yyyy/mm/dd): 2025/07/14
Joshua Karunakaran serves as the Manager of Public Relations and Communications at the British Columbia Association of Clinical Counsellors (BCACC). In this role, he oversees the organization’s public relations strategies and communications efforts. The GST exemption for Registered Clinical Counsellors (RCCs) in British Columbia ensures that 5.7 million British Columbians have more affordable access to mental health services. Previously, RCCs had to prove “equivalent qualifications” in a regulated province, which was an impractical process. The BC Association of Clinical Counsellors (BCACC) collaborated with a regulatory college to confirm substantial equivalency, securing a blanket GST exemption from the Canada Revenue Agency (CRA) on December 20, 2024. This exemption will save $22.5 million annually and enhance employer-sponsored benefits, expanding mental health coverage for British Columbians. BCACC CEO Michael Radano and policymakers welcomed the decision.
Scott Douglas Jacobsen: What is the main takeaway from the exemption from charging GST?
Joshua Karunakaran: The biggest takeaway is that 5.7 million British Columbians now have easier access to quality mental health services through reduced costs. It also puts BC’s mental health practitioners on par with those in regulated provinces of QC, ON, PEI, NS, and NB.
Jacobsen: How many Registered Clinical Counsellors (RCCs) in BC will be affected by the GST exemption?
Karunakaran: Approximately 8,000+ Registered Clinical Counsellors in BC.
Jacobsen: Why was the first GST/HST exemption ruling problematic?
Karunakaran: On July 15, 2024, the Canada Revenue Agency stated that certain psychotherapists and counselling therapists are no longer required to collect the goods and services tax (GST) or the harmonized sales tax (HST) on their services. CRA stated that psychotherapists and counselling therapists need not charge GST/HST if they “operate in a province with no regulatory body but have the equivalent qualifications required to meet the licensing requirements in a regulated province and practice psychotherapy/counselling therapy”.
To prove that their “equivalent qualifications” meet CRA’s requirements, each psychotherapist in BC would have to get a regulatory college in a regulated province to review both their qualifications and practice. Reviewing the credentials of 8,000 Registered Clinical Counsellors (RCCs), each requiring 1-2 weeks of work is a near impossible task which would take 20+ years to accomplish.
Jacobsen: How did the BC Association of Clinical Counsellors (BCACC) resolve the equivalency?
Karunakaran: The BCACC worked diligently and collaboratively with a regulatory college in a regulated province to author a formal letter requesting to evaluate the requirements of becoming an RCC with those of a practitioner in a regulated province. After a detailed analysis of BCACC’s registration requirements, the college confirmed that for the purposes of GST/HST exemption, the qualifications of RCCs are “substantially equivalent” to those registered with the college.
The BCACC then sent this letter to the CRA seeking a blanket GST/HST exemption for all RCCs, an exemption that the CRA confirmed on Dec 20, 2024.
Jacobsen: How did the CRA confirm the GST/HST exemption in BC?
Karunakaran: The CRA communicated this through a formal letter to the BCACC, addressed to our CEO, Michael Radano.
Jacobsen: Are there other provinces that had the same exemptions already?
Karunakaran: Yes. Provinces of QC, ON, PEI, NS, and NB are regulated provinces and therefore GST-exempt.
Jacobsen: How will this exemption improve access to mental health services?
Karunakaran: According to the Canadian Mental Health Association (CMHA), by age 40, 50% of the population will have experienced a mental illness, and 1 in 5 experience mental health problems annually. The incidence of mental health issues has also been rising, particularly since the COVID-19 pandemic.
If we extrapolate that 1 in 5 British Columbians experience a form of mental distress requiring psychotherapeutic services in a given year, we estimate that approximately 1.25 million British Columbians may seek psychotherapy or clinical counselling annually.
BCACC’s Registered Clinical Counsellors (RCCs) comprise 90% of psychotherapists and clinical counsellors practicing in British Columbia. Currently, our membership has over 8,000 members practicing across BC.
Each year, our Find a Counsellor tool averages approximately 125,000 visits from individuals seeking counselling services. If a British Columbian sees a counsellor twice a month at an average rate of $150 per session, the total cost of counselling services amounts to approximately $450,000,000 annually. Eliminating GST from these services results in about $22.5 million in savings for British Columbians. This estimate only accounts for private practice sessions and does not include individuals accessing counselling through social programs or health authorities. If we were able to account for all psychotherapy services provided, the total savings could be close to $45 million per year.
Another crucial implication is that many British Columbians can only access a limited number of counselling sessions through their extended health plans due to monetary caps. RCCs often charge significantly less than other mental health providers. With their services now exempt from GST, employers adding RCCs to their benefits plans can extend mental health coverage, ensuring that employees have access to more sessions while maximizing the value of their plans. The same holds true for publicly funded programs and other mental health service providers working in agencies and health authorities across BC.
Jacobsen: What have the BCACC CEO and other executives said about the GST exemption decision?
Karunakaran: “The BCACC welcomes the CRA’s decision to remove GST on psychotherapy services. This ruling ensures that every British Columbian has the same level of access to mental health services as those in regulated provinces. We look forward to working collaboratively with the CRA to ensure a smooth transition. The association is currently working to distill the information to its members through regular communiques so that they, in turn, can communicate this positive development to their clients” – BCACC CEO, Michael Radano
“Great news that Registered Clinical Counsellors in BC no longer have to charge GST on psychotherapy. Thanks to my colleague
@LMathys for championing this issue. This change will help make services more affordable for people needing support”
Gord Johns, MP – NDP, Courtenay-Alberni
Jacobsen: Josh, thank you very much.
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