Koocher (2007) argued that the development of communication technology used for psychological service provision drives a need to reevaluate ethical standards, and that the expanding role of psychology in society suggested flexibility in resolving ethical obligations was required. The current article aims to explore how flexible an approach should be adopted for psychological service provision that includes communication technology in light of ethical considerations. Taking an Australian perspective on professional standards, technology’s characteristics and effectiveness are considered along with its application within a number of contexts. An evaluation of ethical issues is made in terms of contracts with clients, competency, confidentiality, and the control of psychological practice. Evidence of communication technology’s ethical advantages are shown to be subject to a number of limitations, and risks are identified that present substantial hurdles. It is argued that technological advances introduce significant ethical challenges to psychologists; however, the context under which services are rendered influences flexibility in technology’s adoption. The implications are that professional bodies have a role in balancing access to communication technology, where psychologists need an interdisciplinary view of technology’s incipient ethical risks along with a critical evaluation of contextual factors. Future research that considers variation in service provision context is recommended for rethinking ethical codes and guidelines, expanding technology’s evidence-based efficacy, and identifying and ameliorating ethical risk in advancing areas such as cloud computing. A recommendation is also made to account for similar ethical concerns across cultures when developing communication technology tools for psychological service provision.