In a world-first move in 2023, MDMA and another psychedelic were approved for use in Australia for post-traumatic stress disorder and treatment-resistant depression respectively.

But heavy restrictions by NSW Health on where and how treatment can be administered have left doctors unable to treat in their own clinics and have forced patients to fly interstate for treatment.

"It's just ridiculous," former federal trade minister Andrew Robb told AAP on Wednesday.

"It's incumbent on the department to stop peddling suggestions or justifications which have been proven in 125 (clinical) trials to be totally fallacious".

The regulatory obstacles meant one of the first two people treated with medicinal MDMA in Australia in January, was a NSW resident who had flown to Melbourne for the dosing sessions, along with their psychiatrist and clinical psychologist.

Treatment in NSW is restricted to private health facilities with mental health provisions.

NSW Health's stated concerns had either never been borne out in trials or were integral parts of the treatment, Mr Robb said.

The long-time coalition MP and former federal Liberal Party director, who has previously publicly detailed his long battle with depression, described himself as a strong opponent of drugs for recreational purposes.

But he said the evidence was clear about the ability of MDMA and psilocybin - a psychedelic agent contained in magic mushrooms - to offer paramedics, war veterans and other patients suffering depression or PTSD a chance at remission, not just relief from symptoms.

"I take seven pills a day," the 72-year-old board member of Mind Medicine Australia said.

"I'm sick of it, totally sick of it and all it does is provide relief. It doesn't fix the problem."

Legalise Cannabis MP Jeremy Buckingham said NSW had struck the wrong balance between guarding against adverse events and providing relief to people whose lives had become unbearable.

"It's causing untold needless suffering and loss of life," he told parliament on Wednesday.

Mental Health Minister Rose Jackson, who has met with Mr Robb about his concerns, acknowledged the system was difficult to navigate.

But she said the current measures were essential to ensure the safety of all participants while this treatment method goes through a rigorous research process, as was best practice.

"There are challenges for consumers when it comes to access, which is reflected in the limited uptake in NSW," she told AAP in a statement.

"That is why we are reviewing annually to see where we can make improvements to the system."

Asked if regulations needed to fall into line with neighbouring states, Health Minister Ryan Park said authorities needed to tread carefully in what was a novel area of medicine.

"NSW Health ... are not people who want to try and stop improvements in treatments, but they do want to make sure that we are operating on an evidence base," he said.

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Australian Associated Press