Federal Budget 2026–27: A detailed breakdown for GPs

The Federal Government will fund new bulk-billing GP clinics in areas with ‘historically low bulk-billing rates’, in a move the RACGP describes as ‘distorting health markets’.
 
While the RACCP acknowledged several positives for GPs in Tuesday night’s Federal Budget, including long-awaited three-year-old health checks, a digital baby book, funding for RSV vaccines, and practice incentives, it remains concerned about other spending decisions.
 
This includes $25.3 million to deliver up to six fully bulk-billing general practice clinics across the Central Coast, Newcastle, Lake Macquarie, and Hunter regions.
 
It comes after Federal Health and Ageing Minister Mark Butler warned last year that he would ‘intervene in the market’ to boost bulk-billing rates – a plan he is already carrying out in the Australian Capital Territory.
 
The RACGP described the move as a short-term political measure rather than long-term investment, that risks duplicating existing general practice infrastructure and redistributing an already limited GP workforce.
  
With health spending designed ‘to secure the future of our universal health’, this year’s Budget also delivers $1.8 billion to fund Medicare urgent care clinics (UCCs) on an ongoing basis, as announced earlier this month.
 
RACGP President Dr Michael Wright said both measures are signs that Medicare rebates are failing to support the care delivered in general practice.
 
‘The additional funding to urgent care centres and this plan to distort the market in the Hunter with more funding for bulk-billing clinics, both of those measures show that Medicare rebates are too low,’ he told newsGP.
 
‘If you’re serious about making general practice affordable for everyone, it takes more money, and that’s what we’ve been calling for, and it needs to be across the board, not just in some cherry-picked locations.’
 
In a Budget focused heavily on tax, housing and cost-of-living pressures, there were still many initiatives funded right across the spectrum of healthcare, with the RACGP releasing a detailed overview.
 
Thriving Kids 
The Federal Government will be providing $2 billion funding over five years from 2026–27 to deliver national services, fund enabling supports and contribute to state and territory services for the Thriving Kids program.
 
This includes $126.1 million to support the early identification of children with developmental delay or neurodevelopmental difference through a Medicare funded three-year old health assessment and an expanded Comprehensive Health Assessment Program.
 
This move has been welcomed by the RACGP and follows significant and sustained advocacy from the college and its members.
 
The Budget also funds $60.8 million over five years from 2026–27 to support workforce development and training, including dedicated funding for the Aboriginal and Torres Strait Islander workforce.
 
Practice Incentives Program  
The Budget allocated $119.3 million over three years to extend the Practice Incentives Program Quality Improvement Incentive for two years until 30 June 2028 to support general practices to achieve continuous quality improvement.
 
The RACGP said it supports continued investment in quality improvement in general practice, recognising that high-quality, data-driven care is fundamental to improving patient outcomes, and strengthening preventive care.
 
Extended Medicare Safety Net (EMSN) benefits  
The Federal Government will achieve savings of $43.4 million over four years from 2026–27 by capping EMSN benefits for a small number of MBS items at 80% of the schedule fee.   
 
The RACGP is concerned about this savings measure as it raises important issues for equity of access, and risks increasing out-of-pocket costs for patients who already have high healthcare needs. 
 
It also cautions against reforms that shift costs onto patients or reduces access to necessary care and recommends any savings achieved through changes to the EMSN be transparently reinvested into strengthening Medicare and general practice.
 
Medicare integrity and compliance  
The Government is committing $146.8 million over four years from 2026–27 (and $17.6 million per year ongoing) to establish Medicare integrity capabilities in the Department of Health, Disability and Ageing and Services Australia.
 
This is designed to improve non‑compliance and fraud detection, disruption and prevention efforts in relation to the MBS and Pharmaceutical Benefits Scheme (PBS).
 
These measures will enable savings of $674.1 million over four years (and $230.8 million per year ongoing) by reducing fraud and non‑compliance, and $146.3 million over two years through reduced MBS expenditure as a result of avoided duplicative diagnostic imaging and pathology tests.  
 
The college said it is imperative that any fraud reduction measures do not inadvertently target the overwhelming majority of GPs who are doing the right thing.

RACGP President Dr Michael Wright addressing media at Canberra’s Parliament House following the release of the Federal Budget.

Efficiencies in the PHN program 
The Federal Government says it will achieve savings of $32.2 million over three years from 2027–28 from efficiencies in delivering activities under the PHN program.  
 
The RACGP has called on the government to provide more detail on how these efficiencies are being achieved and if they will result in any PHN programs being cut. It also insists that these savings must be reinvested back into general practice. 
 
Specialist affordability reforms  
Just over $2 million in 2026–27 has been allocated to commission specialist advice to inform the development of future specialist affordability reforms.  
 
The RACGP acknowledges that while access to general practice remains high, the health system continues to be under pressure, and will identify opportunities to engage with this work to support patient accessibility to specialist care.
 
Aboriginal and Torres Strait Islander health  
The Federal Government will spend $144.1 million to continue to meet urgent infrastructure needs of the Aboriginal Community Controlled Health Services sector, as well as $44.4 million to extend funding for the ten existing Birthing on Country services – funding welcomed by the RACGP.
 
The Federal Government will also spend $42.8 million to establish permanent, statutory arrangements for the National Commission for Aboriginal and Torres Strait Islander Children and Young People.
 
The RACGP says it acknowledges the importance of this role as an independent national entity to promote and protect the rights of Aboriginal and Torres Strait Islander young people, especially in the context of lack of progress on Closing the Gap targets and punitive youth justice policies in numerous jurisdictions.
 
Almost $19 million has been allocated to help 13YARN manage growing call volumes, continue community and digital engagement and train and upskill crisis supporters to deliver text-based support.
 
The RACGP added that is recognises there is an increase in racism towards Aboriginal and Torres Strait Islander people and calls on all levels of government to prioritise eliminating racism from the healthcare system and resourcing the implementation of the Australian Human Rights Commission’s National Anti-Racism Framework.
 
Access to medicines 
The Federal Budget has delivered $449.3 million to support the addition of the RSV vaccine Arexvy to the National Immunisation Program (NIP) for older Australians aged 75 and over and Aboriginal and Torres Strait Islander people aged 60 and over.
 
Budget measures also include $41.2 million over four years from 2026–27 to improve vaccination rates amongst children aged five years and younger by expanding the NIP Vaccinations in Pharmacy program to children under five and continuing the childhood immunisation campaign.
 
However, the RACGP has raised concerns that this program will fragment care for infants and further worsening vaccination rates and health outcomes by reducing opportunities for regular review by a patient’s general practice.
 
The Government will provide $5.9 billion for new and amended listings on the PBS and Repatriation Pharmaceutical Benefits Scheme – Nirmatrelvir and ritonavir (sold as Paxlovid) and molnupiravir (sold as Lagevrio), from 1 February 2026, for the treatment of patients at risk of developing severe COVID-19.
 
National Disability Insurance Scheme (NDIS)
The Government will provide $1.7 billion over five years to support people with disability and the NDIS, including a new enrolment and digital payment system to improve payment integrity and reduce fraud and non-compliant payments.
 
The RACGP believes any reforms must acknowledge and reinforce GPs’ central role in disability care and support. This includes recognising GPs as medical specialists, funding the completion of NDIS paperwork, and ensuring GPs can communicate with NDIS staff to flag changes to their patients’ support needs.
 
Digital health 
More than $79 million over three years from 2026–27 will go to the states and territories to support implementation of national digital health reforms. 
 
The RACGP supports investment in national digital health reform, including funding to states and territories, where it delivers interoperable, standards-based systems that integrate seamlessly with general practice clinical software and improve patient care.  
 
There will also be $598.3 million over two years from 2026–27 to support the continued operations and enhancement of My Health Record. 
 
Some $99.5 million will go towards empowering parents, carers and kin with the skills to support children with developmental concerns or autism through Mental Health in Primary Schools and the Positive Partnerships Program, and through a National Digital Child Health Record in My Health Record.
 
Aged care 
In the area of aged care, there was an allocation of $1.4 billion over four years from 2026–27 (and $377.3 million per year ongoing) to improve affordability and access to home care supports.
 
The RACGP said GPs play a key role in providing care for older people, including at home, and will continue to support members to provide high quality services to older people, and advocate for increased investment from government for this care. 
 
There is also a provision of $5.5 million in 2026–27 to extend the Palliative Aged Care Outcomes program and the Program of Experience in the Palliative Approach to continue to upskill the aged care and primary care workforce to further embed palliative care capacity in the aged care workforce.
 
The RACGP acknowledges this investment but added that the primary care workforce really needs is greater funding that supports the necessary time it takes to provide high quality palliative care, both in residential aged care and in the community, the college explained.
 
Women’s health 
The Federal Government will fund $200,000 to establish a Ministerial Expert Panel on Women’s Health, with an initial focus on women’s cardiovascular health.
 
The RACGP welcomes the move, recognising that women have distinct health needs across the life course, including reproductive and mental health, chronic disease and ageing related issues such as menopause.
 
To be effective, the college emphasises that specialist GPs must be represented on the Expert Panel.
 
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bulk billing Federal Budget general practice urgent care clinics