A major transformation of Australia’s Medicare system came into effect today, with a $7.9 billion bulk billing overhaul designed to expand access to free GP consultations across the country.
The federal government’s reform, introduced from November 1, aims to reverse the decline in bulk billing rates and make doctor visits more affordable for millions of Australians. However, health authorities warn it will take several years before all medical practices adopt the new system.
What’s changing
Under the previous scheme, doctors received incentives to bulk bill children under 16 and patients with Commonwealth concession cards. The expanded program now allows anyone with a Medicare card to benefit from bulk-billed consultations.
The government has also introduced the Bulk Billing Practice Incentive Program (BBPIP) — a 12.5% payment bonus to be shared between participating GPs and medical practices that commit to full bulk billing.
Why the reform was needed
Bulk billing rates, once at a record 89% in 2020, had fallen to 78% in 2024, as rising operational costs made bulk billing less viable for many clinics. The Albanese government says the reform will lift the national bulk billing rate back up to 90% by 2030.
The move, announced in the lead-up to the 2025 federal election, was also seen as a key Labor policy to address affordability in healthcare — an issue that has been politically sensitive for years.
Implementation and targets
Health Minister Mark Butler said over 1,000 GP practices have already pledged to move to full bulk billing. The government estimates it needs 4,800 clinics nationwide to participate in order to meet its 90% target, leaving around 2,200 more to join over the coming years.
“Already, a couple of thousand practices have indicated that they’re going to do that,” Butler told reporters. “Doctors are assessing whether their practices and staff will be better off — and the answer for many is yes.”
Impact on doctors and patients
While some GPs have criticised the new 12.5% payment split, claiming it favours larger corporate clinics, the government insists the financial rewards are significant.
According to Butler, a full-time GP who previously earned around $280,000 a year under the old bulk billing arrangements could now earn approximately $405,000 after practice costs — an increase of $125,000 annually.
“This investment is good for the Medicare system, good for patients, and good for doctors,” he said.
The government believes the reform will ultimately make healthcare more equitable, ensuring all Australians — regardless of income — can access free GP care through Medicare.
