It was widely predicted that the Albanese Labor Government would call an early election and avoid having to deliver the March 2025 Federal Budget. The unfortunately timed arrival, and slow movement, of ex-Tropical Cyclone Alfred scuttled these plans, with the Budget being handed down on 25^th March.

Pilot’s summary of the key tax and business announcements that may impact the medical community is as follows.

Medicare

As announced previously, The Government has pledged $7.9 billion over four years to expand bulk billing to deliver an additional 18 million bulk billed GP visits each year.

In addition, from 1 November, a new Bulk Billing Practice Incentive Program will support practices who bulk bill all their patients. This is an additional 12.5% loading payment on their Medicare rebates, in addition to the bulk billing incentive.

Pharmaceutical Benefits Scheme (PBS) Listing

The Government will provide $784.6 million to lower the PBS general co-payment amount (being the out-of-pocket cost of subsidised PBS medicines) from $31.60 to $25.00, starting from 1 January 2026. Several new medicines will also be listed on the PBS, particularly those used in cancer treatments.

Women’s Health

The Government is improving the accessibility and affordability of health care for women in Australia with a $792.9 million package that includes new contraception pills added to the PBS, new menopausal hormone therapies, and new endometriosis and pelvic pain clinics.

Mental Health

Additional funding of $46.0 million over four years from 2024–25 has been announced, to continue digital mental health services.

This is in addition to the $588.5 million committed in last year’s budget over eight years from 2024–25 (and $113.4 million per year ongoing) to establish a national low intensity digital mental health service that is free of charge and free of the need for a referral.

Hospitals

The Federal Government announced a one-off $1.8 billion funding boost for public hospitals in 2025-2026, to cut waiting lists and reduce wait times in emergency rooms and managing ambulance ramping.

This complements the investment in Urgent Care Clinics to take the pressure of the public hospital system.

Dental

$107.8 million in 2025–26 was announced to extend the existing Public Dental Services for Adults funding agreement to 30 June 2026 to support the delivery of dental services to eligible adult dental patients.

Tax Compliance Activity

The theme of strengthening the fairness and sustainability of the Australian tax system rings throughout the Budget. The Government is proposing to spend $999 million over 4 years on compliance programs, the vast majority of which will continue to fund the Australian Taxation Office’s tax avoidance taskforce. This taskforce focuses on large businesses and wealthy groups and individuals and as at September 2024 has helped secure more than $33.2 billion in additional tax revenue.

Other Measures

Other relevant measures announced in the 2025–26 Federal Budget include:

• $657.9 million for 50 additional urgent care clinics.
• $265.4 million to expand GP training, with an extra 200 training places per year.
• $43.9 million to provide paid parental leave and study leave for trainee GPs.
• $44.0 million for an extra 200 rotations for junior doctors in primary healthcare.
• $45.0 million for 100 new medical Commonwealth Supported Places per year.
• $228.7 million to continue modernising My Health Record.
• $5.7 million to improve electronic prescribing infrastructure and services.
• $2.6 billion to increase the award wages of Aged Care nurses from 1 March 2025 over five years. This will also include $90m allocated to Aged Care workers on top of the $2.5bn set aside for RNs, bringing the investment into wage increases in the sector to a total of $17.7 billion.
• $48.7 million to support all assessment providers, public and private, to support implementation of the New Aged Care Act and Support at Home.
• $60.3 million for Aboriginal and Torres Strait Islander Aged Care Assessment Organisations – culturally safe, trauma aware and healing informed aged care assessments for older Aboriginal and Torres Strait Islander people.
• $116.1 million Aged Care Quality and Safety Commission (ACQSC) funding – to deliver existing and new regulatory functions under the new Aged Care Act.

For more information on other key announcements impacting individuals and businesses, see our Federal Budget 2025 commentary here.

Contact Pilot

If you would like to discuss how the Federal Budget announcements might impact you or your business, please contact Kristy Baxter or Angela Stavropoulos at taxmed@pilotpartners.com.au or your Pilot advisor on (07) 3023 1300.