GPs to share bulk-billing incentives with practices under Labor plan


Financial Review
Aug 14, 2025



Doctors will have to split the Albanese government’s bulk-billing incentive payments equally with the practices where they work under details of Labor’s $8.5 billion signature election policy to be announced on Friday.

The bulk-billing initiative was a key election pledge designed to eliminate out-of-pocket costs for patients. Labor went into the election promising nine out of 10 doctor visits would be free within five years.


Anthony Albanese used a Medicare card as a persistent prop on the campaign trail.

Labor had previously announced it would provide an additional 12.5 per cent incentive payment for practices that committed to bulk-billing patients for all services from November 1. How that payment would be split between GPs and practices has not been stated.

Health Minister Mark Butler will announce on Friday that the payments will be divided equally – a move that could determine the policy’s success or failure given medical practices and GPs both need sufficient incentive to sign up. GPs and practices, which must commit to bulk-billing every eligible patient to get the incentive, had both argued they should receive a bulk of the payments.

Butler is standing by the government’s promise, which became a symbol of the election campaign as Anthony Albanese held up a Medicare card to argue that was all Australians would need to be able to see a doctor.



“We know this investment will work because it has already worked for the patients the incentive already applies to – pensioners, concession cardholders, and families with kids,” he said.

“I want every Australian to know they only need their Medicare card, not their credit card, to receive the healthcare they need.”

The Coalition matched the policy during the election campaign but has been critical about its implementation.

A Labor document detailing the impact of the incentives released in March noted that GPs contribute about 30 per cent of their Medicare billings or patient fees to the practice they work for to cover running costs.

Meanwhile, a new coalition of life insurers, experts and industry groups will launch a campaign on Friday to pressure the federal government to tackle the rise in mental health cases ahead of Treasurer Jim Chalmers’ economic roundtable next week.

The Council of Australian Life Insurers (CALI) argues untreated mental health issues are costing the economy up to $220 billion each year, citing Productivity Commission data. It said there had been a 732 per cent increase in the rate of people in their 30s leaving the workforce due too mental ill-health.

“The treasurer and participants in the Economic Reform Roundtable can’t ignore the impact mental ill-health is having on our nation’s productivity. With more people taking time off and leaving work altogether, the toll of this mental health crisis is undeniable,” CALI chief executive Christine Cupitt said.

Life insurers say they face a crisis of affordability and sustainability similar to problems in the NDIS and state workers’ compensation schemes, after mental health claims grew from $1.2 billion in 2019 to $2.2 billion in 2024. Businessman Ryan Stokes said last month worker abuse of compensation claims for mental health should be tackled at the economic summit.

The new alliance, which includes Australians for Mental Health, will call on Chalmers to implement national targets and get all government departments to analysis the mental health outcomes of their policies.

It also wants policies introduced to ensure people get help earlier for mental health issues.

“Taking steps to stop people from becoming so mentally unwell to the point they can no longer work will be a major boost for the economy, communities, families and most importantly the person who get the support they need before a crisis takes hold,” Australians for Mental Health executive director Chris Gambian said.

Labor pledged during the election to provide $1 billion for mental health centres, youth specialist centres and training for mental health professionals and other services.

Doctors said the split was disappointing as surveys showed nine out of ten GPs wanted the full incentive to go to them.

“It’s disappointing that the government has not chosen the model that GPs have said would be the best model for them and their patients,” Royal Australian College of General Practitioners President Dr Michael Wright said.