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2018 Australian Budget Impacts on Health



This week, the Treasurer of the Australian Government handed down the budget for 2018-2019. The budget was focused on providing tax relief to reward working Australians, continuing to support business to invest and create jobs, and guaranteeing the essential services that Australians rely on.

Budget 2018 on wooden table close up

Another focus is a stronger and smarter economy with the Government committed to continued investment in science, medical research and technology. The 2018 budget includes a Medical Industry Growth Plan which will deliver $1.3 billion to support health outcomes for all Australians through investments in medical innovation as well as biotechnology and pharmaceuticals.


Technology and science was a major focus of the 2018 budget with the Federal Government providing $106.8 million over four years to modernise the IT system of Medicare. The funding will also be used to upgrade the system for the Pharmaceutical Benefits Scheme (PBS). Over five years, $28.2 million will be provided to upgrade the software used to prescribe medicines to make the system more user-friendly. From 10th October 2019, the software will allow prescribers to issue an electronic PBS prescription where currently all prescriptions are paper-based.


A new public hospital agreement will see more than $30 billion of additional funding over the next several years, $35.5 billion has been set aside to meet the estimated expenditure of the Medicare Benefits Schedule (MBS) and Pharmaceutical Benefits Scheme for the coming financial year. The budget allows $1.4 billion for new and amended listings on the PBS including a new medicine to prevent HIV.


In a bit to reduce spending on health services, the Government is providing $154.3 million of funds to support Australians to take up healthier and more active lifestyles.

Visa changes for General Practitioners

The 2018 budget also cuts the number of visas available to overseas medical practitioners wanting to work in Australia from 2,300 to 2,100. The purpose of reducing the number of visas is to reduce Medicare costs by a predicted $416 million over the next four years. The savings will be redirected to fund health policy priorities and is the biggest single saving in the 2018 budget.


In a move which has been welcomed by the Rural Doctors Association, the Government wants to limit an oversupply of GPs in urban areas and instead aims to improve targeting of GPs to better support areas with doctor shortages, including regional areas.


HealthStaff Recruitment has positions available for General Practitioners in areas designated as a District of Workforce Shortage (DWS). Contact us today for more information or search our job board for GP opportunities.