Budget 2025-26: Labor’s Record Investment in Healthcare

Cameron Mitchell

The Albanese Government has delivered what it calls the biggest shake-up to Australia’s healthcare system in decades, with a massive $23.5 billion investment that promises to make seeing a doctor free for most Australians.

The centrepiece of the 2025-26 Budget is an ambitious plan to get bulk billing rates up to 90% by 2030 – meaning nine out of ten GP visits won’t cost patients a cent. Right now, too many people are putting off seeing a doctor because they can’t afford the gap fees.

Free GP Visits for Everyone

The government is throwing $7.9 billion at the problem of expensive doctor visits. For the first time, bulk billing incentives will be available for all Australians, not just pensioners and kids. There’s also a new bonus payment for practices that bulk bill every single patient.

The numbers are pretty striking. By 2030, there’ll be 18 million more bulk billed visits each year, and around 4,800 GP practices will be fully bulk billing – three times what we have now. Families will save about $859 million annually in out-of-pocket costs.

More Urgent Care Clinics

Anyone who’s sat in an emergency department for hours with a kid’s broken arm knows how frustrating it can be. Labor is spending $657.9 million to open another 50 Medicare Urgent Care Clinics across the country.

Once they’re all up and running, 80% of Australians will live within a 20-minute drive of one of these clinics. About 2 million people each year will be able to get urgent care without the long waits and chaos of hospital emergency rooms.

Training More Doctors

There’s no point having free healthcare if there aren’t enough doctors to go around. The government is putting $662.6 million into training more GPs and nurses, including what they’re calling the largest GP training program in Australian history.

They’re aiming to train 2,000 new GP trainees each year by 2028. To sweeten the deal, junior doctors will get salary incentives to become GPs instead of specialists, plus paid parental leave during training. There are also hundreds of scholarships for nurses and midwives to upgrade their skills.

Cheaper Medicines

From January next year, prescription medicines will get cheaper again. The maximum cost of a PBS prescription is dropping from $31.60 to $25 – taking prices back to 2004 levels.

For families picking up four prescriptions a month, that’s a saving of nearly $317 a year. Pensioners and concession card holders will keep paying just $7.70, with that price frozen until 2030.

Women’s Health Overhaul

After years of women’s health being treated as an afterthought, there’s $792.9 million dedicated to fixing the gaps. The PBS is finally getting its first new contraceptive pills in 30 years, and women will save up to $400 annually on IUDs and implants thanks to higher Medicare rebates.

Menopause treatment is getting attention too, with new medicines on the PBS and Medicare rebates for menopause health assessments. There’s also funding for 11 new endometriosis clinics and trials letting women get contraceptives and UTI treatments directly from pharmacies.

Hospital Funding Boost

Public hospitals are getting an extra $1.8 billion to tackle waiting lists and emergency department delays. Total Commonwealth funding for state-run hospitals will hit a record $33.9 billion in 2025-26 – a 12% increase.

Aged Care Pay Rises

Aged care workers are getting another pay bump, with $2.6 billion going toward wage increases for 60,000 nurses. Since the last election, a registered nurse is earning about $430 more per week, while enrolled nurses are getting an extra $370 weekly.

The Political Reality

This budget sets up a clear battle line for the next election. Labor is betting that Australians want a healthcare system where your Medicare card matters more than your credit card balance. They’re painting the Liberals as the party that will cut Medicare funding if they get back into power.

The big question is whether all these promises will actually work. Getting bulk billing rates up to 90% is ambitious, and training thousands more doctors takes time. But for millions of Australians struggling with healthcare costs, this budget offers hope that seeing a doctor or filling a prescription won’t break the bank.

The proof will be in whether you can actually get a bulk billed appointment when you need one.Add to Conversation

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