Abstract
Objective: To give an overview of academic departments of psychiatry in Australia, emphasising the contribution they have made to the development of psychiatry in this country and the current pressures on them. Method: Review of the literature, historical perspective and personal observation. Results: University departments of psychiatry are under considerable stress in Australia because of pressure on both the health and education budgets. Conclusion: In the current climate, university departments need to reconsider their core goals and review their sources of funding if they are to survive and prosper.