Sunday’s announcement of an $8.5 billion investment in Medicare and general practice reflects the increasing pressure on Australia’s primary healthcare system and the need for sustained investment. However, AMA Victoria is concerned about the structure of this funding, the assumptions underpinning it, and what it signals for the future of Medicare reform.

While additional funding for general practice is positive in principle, directing the vast majority of this investment towards bulk billing incentives does not address the structural issues undermining general practice. The core problem remains that Medicare rebates do not reflect the true cost of delivering high-quality, patient-centred care. The incentive funding uplift primarily benefits large corporate practices and short-consultation models rather than supporting longer, more complex patient care. The government’s assumption that this policy will lead to a substantial increase in bulk billing rates may not hold in practice, as incentives that do not cover the cost of service delivery will not be taken up by many practices. General practices will still need to set fees based on their operating costs, and many will continue to privately bill, particularly for longer consultations. It is also unclear how this package will interact with other policy concerns, including payroll tax discussions in Victoria. The impact on practice viability will depend on how these issues intersect in the coming months.

Adjunct Clinical Professor Karen Price, Chair of AMA Victoria’s General Practice Policy Council, strongly cautioned against the idea that this package will bring about a return to universal bulk billing or even reach the Government’s target of 9 out of 10 services being bulk billed. While acknowledging that the additional funding will help some vulnerable patients, she stressed that for many GPs, these incentives will not be enough to change their current billing structures. “In a mixed billing practice, these incentives are not going to change much," she said. "Put it this way, GPs are not going to be corralled back into full bulk billing, and one reason for that is simply that the Medicare rebates are still inadequate.”

Professor Price also warned that the government’s approach risks prioritising political messaging over genuine structural reform, despite years of consultation and evidence on what works in general practice funding. “On the weekend, we’ve ended up with an election promise despite people having spent years putting together the studies and evidence of what works if you fund high-quality GP healthcare," she said. “And it all just comes down to an election promise on cost. It’s as if we’re some kind of vending machine.”

Despite this investment, AMA Victoria is concerned that this may be the final word on general practice reform for this federal election cycle, with no further commitment to addressing the inadequacy of Medicare rebates. While $8.5 billion is a substantial figure, its actual impact depends on bulk billing uptake, and if projections are not realised, the funding that reaches general practice may fall well short of expectations. A broader uplift in patient rebates, rather than an expansion of bulk billing incentives, would have provided a stronger foundation for general practice sustainability. The funding also does not reach the quantum required to reach AMA Victoria’s advocacy target for Government funding of general practice to be 10% of the spend on healthcare.

One significant positive outcome of Sunday’s announcement is the government’s commitment to extend Victoria’s GP registrar incentive payments nationally — an initiative that AMA Victoria has strongly advocated for. This marks a significant win for our advocacy and a crucial step towards addressing workforce shortages in general practice. For years, GP registrars have faced a financial penalty when transitioning from hospital-based training to general practice, making it a less attractive career path. While in 2024 and 2025 most Victorian GP registrars have received up to $40,000 in under a two year commitment from the Victorian Government that we advocated for, we were highly concerned that the cessation of this program would see a reversal of increased recruitment into general practice training. The Federal Government’s commitment to provide a $30,000 top-up for all Australian GP registrars will extend the successful Victorian program nationally,  ensuring that junior doctors are better supported as they enter community-based training. The broader $248.7 million package, which also includes funding for parental leave and study leave, will create a fairer and more viable training pathway for future GPs. AMA Victoria acknowledges the leadership of both the Victorian and Federal Governments, as well as the bipartisan support from the Coalition, in recognising the need for this reform and delivering a long-overdue national commitment.

AMA Victoria remains committed to advocating for long-term reform of Medicare that goes beyond bulk billing incentives to properly fund general practice as the foundation of our healthcare system. These issues will be an important focus of our upcoming AMA Victoria Council meeting on 4 March, where members will have the opportunity to discuss the implications of this announcement and determine our next steps in pushing for real general practice reform. However, AMA Victoria encourages all members to contribute their perspectives, particularly as we approach the next federal election. Members can do by emailing Senior Policy Adviser, Lewis Horton, at [email protected].

While the government’s announcement brings some positive developments — particularly for GP registrars — it does not resolve the fundamental concerns around general practice sustainability, workforce shortages, and Medicare reform. AMA Victoria will continue to push for solutions that support both patients and GPs, ensuring that general practice remains viable, accessible, and at the heart of Australia’s healthcare system.