Will the government’s $8.5 billion Medicare commitment fix the bulk billing crisis?

Options for bulk billing GP clinics in Melbourne’s eastern suburbs have become scarce, with the federal electorate of Aston having only one out of 10 not charge any out-of-pocket cost.

The 2025/26 Federal Budget has pledged to expand bulk billing incentive eligibility to cover all Australians from 1 November 2025, with the Labor government committing to 9 out of 10 GP visits being bulk billed by 2030.

What has been promised to support the local health sector?

Treasurer Jim Chalmers’ used his budget speech on Tuesday night to announce an $8.5 billion investment towards Medicare, with an aim to boost bulk billing availability and overall healthcare access.

“More bulk billing will mean less pressure on families,” he said.

“These incentives mean there will be around 4800 fully bulk billing practices across the country, making it easier to see a doctor and get the care you need.

“This Budget also delivers new incentives for doctors to train as GPs, new scholarships for nurses and midwives, better access to Urgent Care Clinics and another 50 Medicare Urgent Care Clinics.”

One of the 12 new Urgent Care Clinics announced for funding in Victoria would be in Lilydale, with others including Warrnambool, Warragul, Pakenham and Diamond Creek.

What is bulk billing and why do GP clinics have to stop it?

Bulk billing is a service provided by some GP clinics where all charges are put through Medicare, with no out-of-pocket charges required from the person attending the GP clinic.

A number of factors lead to GP clinics deciding not to bulk bill, namely the fact that the Medicare rebate has not kept up with inflation, with clinics deciding to move away from bulk billing in order to maintain financial viability.

How bad is bulk billing in Melbourne’s eastern suburbs?

The number of bulk billing clinics in the federal electorate of Aston has plummeted over the past 12 months, with almost nine in every 10 GP clinics not offering bulk billing services, representing a 21.4 percent drop.

In Chisholm, only 21.8 percent of clinics were found to be bulk billing in 2024/25. Only two years ago, that figure was over 50 percent.

In Casey, 15 per cent of GP clinics were bulk billing in 2024/25, a 3.4 percent drop from the year prior, but a 3.2 percent improvement compared to the 11.8 percent figure seen in 2022/23. However, Casey residents who attended a local GP incurred the highest average out-of pocket cost of $41.81.

What has been the response from health advocacy bodies?

Royal Australian College of GPs (RACGP) president Dr Michael Wright said the extra funding would be better placed towards patients with the highest costs to bear.

“While it’s clear general practice is central in this year’s Budget, we are concerned the plan, which has also been backed by the Opposition, won’t deliver the bulk billing rates they expect because patient rebates are still too low to cover the cost of care,” he said.   

“There is a missed opportunity here to properly fund patient Medicare rebates to ensure affordable access to general practice care for all Australians. 

“That’s why we've been saying for a long time that Medicare funding should be targeted to those who need it most, including the 61% of Australians living with chronic and complex illnesses.

Australian Medical Association (AMA) president Dr Danielle McMullen said the AMA was looking forward to hearing from both parties during the election on their plans to address critical issues in the system, including through reform.  

“While this investment will help address affordability issues for many who don’t currently qualify for bulk billing incentives, structural reform of Medicare rebates is needed to ensure today’s patients get the care they need,” she said.

"We are calling for a new seven-tier general practice consultation item structure that is designed to meet the challenges of the growing burden of complex and chronic disease — one that supports patients to spend more time with their GP as part of a comprehensive approach to care.”

“We know this is expected to be a health election, and we are hoping to see some much-needed reforms announced, that combined with tonight’s investment in Medicare, will ensure Australia’s health system continues to be one of the best in the world.”

What do other candidates and MPs pledge towards the local health sector?

In February, Casey Liberal MP Aaron Violi told the Eastern Melburnian the Coalition had a plan to build our GP workforce by incentivising junior doctors to become GPs, particularly in regional and rural communities.

“Not only is bulk-billing down, but, due to the peri-urban and regional nature of my community, families are finding it harder to see a GP and the cost of visiting the doctor has skyrocketed in the last three years,” he said.

Greens candidate for Casey Merran Blair told the Eastern Melburnian the Greens aimed to advocate for more incentives for clinics to offer bulk-billing services.

“The fundamental purpose of the Medicare system is for all Australians to be able to access essential healthcare for free,” she told the Eastern Melburnian.

“Investment in the sustainability of Medicare is essential, and the key to this is to incentivise GPs to offer bulk billing arrangements for everyone with a Medicare card and the creation of free local healthcare centres.”