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Are you Earning More Than the Average GP?

Doctor holding a piggy bank to indicate earnings

Figures disclosed by the Department of Health show that on average, full-time general practitioners billed the Medical Benefits Scheme for $338,524 in the last financial year (2015/16).

The full-time figure was based on GPs working five days for 48 weeks a year averaging 240 days a year. Doctors working 211-240 days billed Medicare almost $299k on average, while those working 241-280 billed $381k on average.

The figures were given as average GP salary in response to questions about the ability of practitioners to withstand the Medicare freeze.

Although the government continues to insist that GPs can afford to cover the Medicare freeze, which was introduced in 2013, the $338.5k average shows an increase of $26.5k since the 2011/12 financial year.

Doctors argue that the MBS rebate figures do not represent GP earnings because they do not take into account the growing costs of running a practice, including increased administrative responsibilities for compliance.

The majority of GPs are small business owners and have to cover themselves for such things as sick leave and annual leave. GPs also state that the full-time hours on which the figures are based do not take into account hours worked which are not claimable such as making follow-up calls to patients and reading reports, and that most doctors work more hours per week than the 38-hour average.

The figures also do not take into account that the GP salary varies widely according to where they practice. In 2010 the University of Melbourne Faculty of Business and economics published a report on the factors which influence GP salary in Australia. It found that GP earnings are higher if they work in larger practices, in outer regional or rural areas, and in areas with lower GP density.

Payscale, an online salary, benefits and compensation information company, currently lists the average GP salary as $118,810 per year.

Data recently released by the Australian Tax Office show that although health jobs – particularly specialists – dominate the top 50 highest paying jobs, female practitioners earned an average GP salary of $129,834 in the 2013/14 financial year.

Male GPs did not rank in the top 50 highest paying jobs where the 50th position was held by mining production managers earning an average of $179,439.

BEACH researchers released independent modelling in June which projected the Medicare freeze would cost full-time practitioners $109k in total GP earnings until June 2020 when indexation is slated to return, and that by July 2019 GPs will need to charge general patients $11.40 in co-payments per consultation to make up for lost income relative to 2014/15.