The federal budget has locked in welcome investments in Medicare, but significant reforms are needed to ensure Australia's health system doesn't fall further into crisis.
Australian Medical Association President Dr Danielle McMullen said it was reassuring to see the additional $8.5 billion for Medicare that was promised by both parties confirmed in the budget, together with funding to address GP workforce issues and medical workforce shortages.
"This investment followed years of campaigning through our Modernise Medicare campaign which highlighted the long-term neglect of Medicare and consequences of that neglect on our health system.
"But 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.
"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."
Dr McMullen also welcomed funding to grow Australia's specialist GP training places, with the AMA's 2025–26 budget submission highlighting the growing shortfalls in GP numbers.
"The government has also responded to our calls for funding for additional training rotations in general practice for early career doctors and funding to improve and equalise employment conditions for GP doctors-in-training," Dr McMullen said.
However, Dr McMullen said the government had missed an opportunity to support thorough and evidenced-based workforce planning by not establishing an independent health workforce agency .
"Since the abolition of Health Workforce Australia, we haven't had an independent body dedicated to ensuring Australia's medical workforce is distributed where it's needed, improving access to healthcare for all.
"We again acknowledge announcements earlier this year that followed significant advocacy by the AMA in relation to women's health. This includes a commitment to lift Medicare rebates for long-acting reversible contraceptives, the inclusion of two new oral contraceptives on the PBS and extra clinics to support patients with endometriosis, pelvic pain, perimenopause and menopause."
The AMA will also be pushing the next government to address the growing crisis in the private health sector, including hospital closures, contract disputes between insurers and hospitals and growing evidence that more and more policy holders are downgrading their cover as premiums become less affordable.
"We are concerned these issues will only get worse and are calling for an independent private health authority to oversee urgent reforms and ensure the sector is meeting the expectations of the community," Dr McMullen said.
Dr McMullen said the additional funding the government had locked in for Australia's public hospitals would go some way to helping our increasingly logjammed public hospitals improve their performance , but the party that wins the election would need to expedite finalising the National Health Reform Agreement.
"While the recent investment from the federal government and action to address issues in some states and territories is welcome; the delay to a new National Health Reform Agreement was disappointing. The federal government's promised investment, originally estimated at $13 billion, into our public hospitals is little more than a nice idea if states and territories fail to reach an agreement with the federal government.
"The need for a new fit-for-purpose agreement has never been greater — for both doctors and their patients."
Dr McMullen said hospitals were being increasingly impacted by rising rates of chronic disease and the government had also missed the opportunity to tackle obesity and chronic disease through a tax on sugary drinks, which would also boost the budget bottom line.
"Our proposal for a tax on sugary drinks would drive down annual sugar consumption by 2kg per person, while raising $3.6 billion in government revenue over the forward estimates — funds that could be invested in crucial preventive health measures.
"We have been pushing for a tax on sugary drinks for many years, but governments keep kicking the can down the road, all while Australia's issues with obesity and chronic disease become worse and worse."
Dr 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.
"We know this is expected to 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."
