GP funding has increased by billions of dollars. Bulk billing rates have been lifted. Across the country, especially in lots of the areas most in need of fee-free care.
But changes a Passive funding model for general practice, and has removed the federal government’s predominant way of overpaying GPs with poorer patients.
So there’s a necessity for deep reform.
What has modified?
GPs receive an extra Medicare payment (or incentive) for bulk billing a patient. This is on top of the prevailing discounts they normally receive.
Govt in 2023 Threefold Concessions, which apply to concession card holders and kids. Then, a flagship in 2025 Election promiseThe government said it will take the majority billing rate to 90 percent by 2030.
To help get there, the federal government said it will increase incentives for bulk billing. To all patientsnot only children and discount card holders.
As a sweetener, clinics that charge all their patients in bulk. Additional 12.5% On top of their medical payments.
The changes began in November 2025 and can cost taxpayers approx. A $2 billion A yr
How much did bulk billing increase?
Data released this week The show had a right away effect.
From November 2025 to January 2026, 81.4% of GP services were bulk billed, in comparison with 77.1% for a similar period a yr ago.
This is the most important quarterly increase because the early days of the pandemic. But bulk billing rates Didn’t come back? to the height we saw then – when it reached over 90% – or the mid-80% for a few years before that.
Number of clinics that bulk bill all their services. Increased. That’s up from about 2,300 before the change in November, and greater than 3,400 at the top of January.
Who is benefiting probably the most?
Bulk billing rates have increased in every state and territory, with the most important increases amongst people aged 16-64, and in regional centers and towns and fewer affluent areas. This is sensible, given how bulk billing incentives are designed, and altered.
gave Bulk billing rates 16-64 yr olds increased by 4.2 percentage points, the most important change of another age group. This is because they’re eligible for the brand new advantages even in the event that they do not have a reduction, and so they are less more likely to have a reduction than older people.
The bulk bill incentive for GPs increases as you progress out of major cities. In cities, the inducement for face-to-face consultation is greater than five minutes. $21.85. It grows in very distant areas. $42.05.
In poorer areas, clinic fees are lower and bulk billing is higher. This means they usually tend to make a profit in the event that they switch to benefit from the brand new incentives.
The average GP fee within the December quarter was $51After adjusting for inflation, up from $48 a yr ago.
Grattan Institute, CC BY
What is missing?
This major investment is having the specified impact. Every week More clinics are selecting to bulk bill all their patients.
But promoting bulk billing incentives has a side effect: Inactive Funding model.
Australia relies largely on fee-for-service payments for general practice. This means more funding for a lot of short visits no matter patient needs.
It also means money cannot reach the multidisciplinary team that works with the GP, and will include nurses, physiotherapists, psychologists and pharmacists.
The result’s GPs rushing through visits with little support. This is a poor fit for complex chronic disease, and the indisputable fact that more Australians live with multiple conditions akin to diabetes, hypertension and heart disease. This funding model also doesn’t move money to where it’s needed most.
In a very important way, changes to bulk billing incentives make the issue worse. Earlier, the incentives were only applicable to concession card holders. But now GPs have the identical incentive to bulk bill whether a patient is wealthy or poor.
This makes Australia exceptional. Other high-income countries adjust GP funding for loss, which is strongly linked to the necessity for care.
How do other countries do it?
Starting this yr, New Zealand Will pay GPs more to see disadvantaged patients. Scotland Did it in 2018? They followed many other systems from Sweden to Canada.
England’s approach is long. Criticized For not doing enough to account for losses in GP funding. But there’s a government. Reviewing Funding to vary that.
Back in Australia, two free Reviews The Grattan Institute is commissioned by the federal government. Researchhas beneficial that Australia meet up with other countries and improve general practice funding.
They call for “blended funding”: combining flexible payment based on each patient’s needs with a per-visit fee.
What’s next?
The government is celebrating this increase in bulk billing, and patients will welcome more fee-free GP visits. While there are signs that the advantages will proceed, it’s too early to inform obviously.
Either way, Australia cannot afford to easily fund care within the unsuitable way. Even if we reach the 90% bulk billing goal, other funding changes will likely be needed to reflect patient health and wealth. This is crucial to creating our health care system efficient and fair.