This study aimed to identify the factors that counsellors working with refugees and asylum seekers in Australia consider influence their wellbeing and effectiveness. Nine employees in counsellor roles were interviewed. Thematic analysis indicated that government policies and practices were the greatest challenge. Factors facilitating effectiveness and wellbeing included having clear values, being able to see results for the client, receiving organisational support, working in a positive organisational culture, and having the support of family and friends. Factors inhibiting wellbeing included personal pressure to exert change, counsellor experience, feeling alienated from the community, lack of supervision, unclear organisational guidelines, and organisational values not being upheld. Along with the reported negative impact, positive psychological transformation was also reported. Through reflection on their clients’ strengths and resilience, participants reported feeling inspired, with increased effectiveness and wellbeing rather than vicarious trauma. This research contributes to the discussion about the psychologically harmful effects of government refugee and asylum seeker policy on counsellors and their clients.