Budget: AMA welcomes investment but calls for system reform

In a post-Budget 2025–26 statement, Australian Medical Association President Dr Danielle McMullen welcomed health investment that includes the additional $8.5 billion for Medicare — promised by both parties and now confirmed in the Budget — together with funding to address medical workforce shortages and GP workforce issues. “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,” McMullen said.

McMullen also said that “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”. McMullen added: “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.”

On the subject of funding to grow Australia’s specialist GP training places, McMullen said: “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.” Yet she added that 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 health care for all,” McMullen said.

Among the other areas flagged as needing attention, McMullen said the AMA would be pushing the next government to address the growing crisis in the private health sector. This is a crisis that includes contract disputes between insurers and hospitals; hospital closures; 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,” McMullen said.

In closing, McMullen said the AMA was “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”.

You can read AMA’s 2025–26 Budget submissions here, via the AMA website.

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