Sleep Problems and Nightmares in Veterans: DVA-Funded Psychology That Helps
Insomnia and nightmares after service: why they persist, the psychological treatments with the best evidence (CBT for insomnia and imagery rehearsal therapy), and how DVA pays for them in full.
By ClearAccess Psychology · 25 October 2026
The short answer: poor sleep is one of the most common problems veterans describe, and it usually doesn't fix itself. Cognitive behavioural therapy for insomnia (CBT-I) is the recommended first treatment for chronic insomnia, ahead of sleeping tablets, and imagery rehearsal therapy can reduce trauma-related nightmares. A psychologist can deliver both. If you have at least one day of continuous full-time ADF service, DVA pays for it in full under Non-Liability Health Care, with a GP referral and a Veteran Card that covers mental health.
Checked against DVA's published rules on 25 October 2026. General information, not medical advice. Snoring, gasping or stopping breathing in your sleep can mean sleep apnoea: see your GP about that.
Awake and struggling right now? Open Arms answers at any hour: 1800 011 046. Emergency: 000. Lifeline: 13 11 14.
Why does sleep go wrong after service?
Years of shift work, deployments, broken sleep and staying alert on duty can retrain the body clock and the brain's "threat switch". After discharge, sleep problems often continue because of:
- Insomnia: trouble falling asleep, waking through the night or too early, for three nights a week or more for three months or longer
- Nightmares, often replaying or echoing traumatic events
- Hyperarousal: lying in bed alert, listening for noises, checking locks
- Habits that kept you going: caffeine, energy drinks, alcohol to get to sleep, screens, irregular hours
- Pain, injury and medication side effects
- Other conditions: PTSD, depression, anxiety and alcohol use all disrupt sleep, and poor sleep makes each of them worse
Better sleep is often the first change veterans notice in therapy, and it makes everything else easier to work on.
Which treatments work?
| Problem | Treatment | What it involves |
|---|---|---|
| Chronic insomnia | CBT for insomnia (CBT-I) | Usually 4 to 8 sessions. Sleep scheduling (consolidating sleep by adjusting time in bed), stimulus control (re-linking bed with sleep), working on the thoughts that keep you awake, and a wind-down routine. |
| Trauma-related nightmares | Imagery rehearsal therapy (IRT) | Rewriting a recurring nightmare while awake and rehearsing the new version for a few minutes daily. Often fewer and less intense nightmares within weeks. |
| Nightmares as part of PTSD | Trauma-focused therapy (CPT, prolonged exposure, EMDR) | Treating the PTSD itself often reduces nightmares. See PTSD treatment under DVA. |
| Lying awake on high alert | Relaxation training, mindfulness, ACT, alongside CBT-I | Lowering arousal so sleep can happen. |
Australian and international guidelines recommend CBT-I as the first-line treatment for chronic insomnia. Sleeping tablets can help for a short period but tend to lose their effect, while the gains from CBT-I last.
What will it be like?
Expect a sleep diary for a week or two first, so you and your psychologist can see the pattern. The early part of CBT-I can feel counter-intuitive, such as spending less time in bed for a while, and you might feel more tired for the first week or so. Then sleep becomes deeper and more reliable, and you gradually extend the window. Many people find this is the first time in years they've felt in charge of their sleep instead of at its mercy.
How DVA pays for sleep and nightmare treatment
- Who: current and former ADF members with at least one day of continuous full-time service, including reservists with CFTS. Non-Liability Health Care covers all mental health conditions, including insomnia and nightmare disorder, without proving a link to service.
- Card: Veteran Gold Card, or Veteran White Card with mental health listed (check "Conditions listed" in MyService, or call 1800 VETERAN on 1800 838 372).
- Referral: from your usual GP. Each referral covers up to 12 sessions or a year; a full course of CBT-I usually fits inside one treatment cycle.
- Cost: nothing. A psychologist accepting your Veteran Card must accept DVA's fee as full payment.
- Telehealth: CBT-I works well by video, and DVA funds video sessions (and phone when video isn't available). The first session of each cycle must be in person or by video.
Our guide to DVA-funded psychology explains each step.
How to find a psychologist for sleep problems who bills DVA
On ClearAccess Psychology, search for psychologists who bill DVA and treat sleep problems, near you or by telehealth. You can also look for psychologists who work with veterans. Each profile shows plainly what you'll pay under DVA: nothing.
Tonight might be another rough one. It doesn't have to be one of many more.
Frequently asked questions
Does DVA pay for insomnia treatment?
Yes. Under Non-Liability Health Care, DVA funds treatment of all mental health conditions, including insomnia, for anyone with at least one day of continuous full-time ADF service. A psychologist can provide CBT for insomnia with no gap.
What is CBT-I?
Cognitive behavioural therapy for insomnia is a structured treatment, usually 4 to 8 sessions, that uses sleep scheduling, stimulus control and work on unhelpful thoughts to restore reliable sleep. It's the recommended first treatment for chronic insomnia.
How do you stop PTSD nightmares?
Imagery rehearsal therapy, where you rewrite and rehearse a nightmare while awake, reduces trauma-related nightmares for many people. Treating the underlying PTSD with trauma-focused therapy also tends to reduce them.
Are sleeping tablets a good long-term solution?
Usually not. They can help short term but tend to lose their effect over time. CBT-I is recommended first because its benefits last after treatment ends. Talk to your GP about any medication.
Could my sleep problem be sleep apnoea?
If you snore loudly, gasp or stop breathing in your sleep, or wake unrefreshed despite enough hours, see your GP about a sleep study. Sleep apnoea is treated medically, alongside any psychological treatment.
Sources
- DVA, Non-Liability Health Care (mental health) for veterans
- Australasian Sleep Association, Insomnia resources
- Phoenix Australia, Australian PTSD Guidelines
- Open Arms – Veterans & Families Counselling