MDMA and psilocybin treatments are set to be offered for the first time in the Hunter to treat mental illness.
Psychiatrist Stuart Saker has received approval from the Therapeutic Goods Administration to become an authorised prescriber.
"After a lengthy process, we can now start prescribing," Dr Saker said.
The TGA allows MDMA to be used for the treatment of post-traumatic stress disorder, and psilocybin for treatment-resistant depression.
MDMA is also known as ecstasy, while psilocybin is a psychedelic compound found in mushrooms.
Dr Saker said his treatments would be "run as a clinical trial with oversight by an ethics committee".
He plans to offer the medicine through his Brain Save clinics in Broadmeadow and East Maitland in the Hunter, and Killarney Vale on the Central Coast.
The sessions are planned to occur in Toronto Private Hospital's private rooms.
The treatment could be partly funded in future through private health insurance.
Medibank Private is running a pilot program for MDMA-assisted therapy for PTSD as part of its "innovative psychotherapy program".
As of now, the therapy in the Hunter will cost about $30,000.
Dr Saker defended the price, saying "if you have a four-week admission in a private hospital that will cost about $30,000".
"If the treatment stops you having 10 private hospital admissions in future, then a lot of money is saved.
"This is why Medibank is doing a pilot scheme with hospitals."
Dr Saker said the therapy would involve four sessions for preparation and three for taking the medicine.
A further four sessions would be for "integration", which involves processing insights from the experience.
During the treatment, patients are supported by two clinicians, one male and one female.
"They're either a psychologist, doctor or nurse who has done training in psychedelic-assisted therapy," Dr Saker said.
As an Army Reserve medical officer who was deployed in war and humanitarian missions, Dr Saker understands the challenges that service people face.
He said veterans and first responders were among those interested in trying the therapy.
The Department of Veterans Affairs (DVA) said it will fund the treatment "under strict clinical criteria".
"DVA is working to finalise necessary arrangements to ensure eligible veterans have safe access to this treatment," a spokesperson said.
Dr Saker said patients could receive the treatment only after failing to respond to numerous antidepressants and other therapies such as TMS [transcranial magnetic stimulation].
The TGA, Australia's medical regulator, approved MDMA and psilocybin for use from July 2023, after international trials showed promising results.
This enabled psychiatrists to apply to become authorised prescribers.
A Royal Australian and New Zealand College of Psychiatrists statement said "the evidence base for psychedelic-assisted therapy with either MDMA or psilocybin is limited and emerging".
"Patient safety is paramount," the statement said.
It said the therapy "carries unique risks that necessitate careful clinical judgement and clear communication with potential patients".
The therapy must occur "under highly controlled conditions and include the careful monitoring and reporting of efficacy and safety".
Dr Saker believes new approaches are needed for mental illness because existing treatments don't work for many.
"If you have a serious mental illness, it's as bad as cancer," he said.
"It can cost you your job, relationship, health and life."
He said any form of new medication would attract "naysayers but also pioneers".