A tricky trio: how state budgets shaped up for GPs

4 minute read


NSW, ACT and Queensland have released their state budgets, sparking both excitement and calls for reform.


It has been a big week for enthusiasts of government funding allocations, as the New South Wales, ACT and Queensland state governments release their respective budgets for the year.

Despite the obvious differences in state priorities there were many commonalities, with workforce shortages and bulk-billing sustainability coming to prominence.

This comes as many state governments have been looking to reform Medicare regulations and further support bulk-billings affordability for general practice.

Where: ACT

Big hit: Payroll tax

The highlight of the ACT’s budget was its new policy on how payroll tax is applied to general practices in the territory.

From July 1, general practice revenue from bulk-billed services will be exempted from payroll tax liabilities, similar to the policies already in effect in Victoria and South Australia.

This change has been endorsed by the RACGP, but ACT and NSW chair Dr Rebekah Hoffman told The Medical Republic it ‘is unlikely to impact bulk-billing at all.’

“It means that when [GPs] choose to bulk-bill their patients, they will now have a payroll tax exemption,” she said.

“It won’t go … far enough to actually change the bulk billing percentage in ACT.

“To see that happen, we’d have to see a full exemption akin to what is seen in Queensland, because the payroll tax component, although it is significant, does definitely not bridge the gap between the current Medicare rebates for patients and the current out of pocket costs to see a GP.”

Where: NSW

Big hit: Missed opportunities in training and disaster relief

The release of the NSW state budget has been marred by disappointment, with many key initiatives that have been repeatedly called for by general practice being mostly ignored.

With the recent floods in far north NSW, the college expected a level of government recognition for general practice’s role in disaster recovery after multiple calls for reform.

This did not materialise.

Investment into GP training was another disappointment, with the previously announced federal incentives not expected to address the unique NSW needs as many parts of the state fall behind in terms of education.

“I think sometimes our wonderful politicians forget that general practice exists and forget how important we are,” Dr Hoffman told TMR.

“That’s one of our jobs … to continue to remind them not only that general practice is here, but of the value of primary care.

“What we’d love to see [in] both New South Wales and ACT is incentives for those doctors that are choosing to [work] regionally or rurally, and that need is housing.

“We need reliable housing for registrars or for fellow doctors to be able to move to a town and know they have somewhere for their families to be able to live and that might be the one thing that’s stopping them from going to that location.”

Where: Queensland

Big hits: Workforce shortage promises

The Queensland budget is being held in relatively high regard, with the government announcing major investments to addressing health workforce shortages.

This investment is set to add roughly 46,000 new healthcare workers, with 4,500 expected to be in action in the next 12 months.

The budget may have only been released late on Tuesday, but AMA Queensland has already warned that calls for reform and adjustments should be expected soon.

The overall budget investment was highly welcomed, with the $33.1 billion invested in health being an increase of 10% over 2024.

“Definitely the biggest highlight is the amount of money that has been set aside,” AMAQ president Dr Yim told TMR.

“We are going to be reviewing it quite thoroughly to assess where the money has been allocated, what is the plan moving forward.”

“We will continue to work with Queensland Government to ensure that we are delivering those services for our patients, and also to ensure that we are getting the best bang for your buck for the profession as well.”

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