Health Insurance Amendment (Incentive Payments and Other Measures)

Current status

This bill is currently before Parliament.

Policy area

Health, care & disability

What does this bill do?

Healthcare providers can receive government incentive payments under one consistent legal framework.

Why was it introduced?

The government said major primary-care payment programs lacked one clear system for eligibility, oversight, compliance and review. Together, these programs provide more than $1.4 billion each year. Mark Butler (Australian Labor Party) said approximately 97 per cent of people lived within a 20-minute drive of a bulk-billingThe provider accepts the Medicare payment as the full fee. practice, where Medicare pays the full fee. The government said the bill would protect public money while keeping program settings flexible.

Broader context

Australia already used major primary-care incentive programs, including bulk-billingThe provider accepts the Medicare payment as the full fee., aged-care, quality, digital-health and rural and remote payments, but several operated without a dedicated legislative scheme for eligibility, compliance and review. Against pressure to make GP care more affordable—while bulk billing had risen above 81% nationally since 2025—the Albanese government responded by introducing a consistent statutory framework and renaming the Health Insurance Act; the House passed the bill on 2 July 2026, but the supplied evidence does not show final passage or implementation.

Key criticism

Andrew Wallace (Liberal National Party) supported the bill's purpose but argued the government's wider primary-care record was poor. He said the average patient payment for a standard GP visit reached $50.77 from July to December 2025, up from $41.90 two years earlier. He also said GP visits fell by more than 1.8 million compared with the previous year. Michael McCormack (National Party) argued regional communities still lacked bulk-billingThe provider accepts the Medicare payment as the full fee. doctors and sometimes faced a 300-kilometre trip.

Who supported it?

Mark Butler MP introduced this bill. Supportive speeches so far have come from Labor, Nationals, LNP.

Introduced in House 27 May 2026
Passed House 02 July 2026
At second reading in Senate 02 July 2026
Not yet law

Did it become law?

Not yet

Final passage

Recorded vote so far

1 recorded amendment or procedural vote was found, but no counted vote on the bill itself was recorded.

Days since introduction

72 days

Updated 07 Aug 2026.

Official record

View on APH

Parliament of Australia bill page

What does this bill do?

  1. Healthcare providers can receive government incentive payments under one consistent legal framework. Program details can be updated through separate rules.

  2. Existing program participants move into the new framework without reapplying. Their main eligibility rules and payment amounts do not change.

  3. Patients can still receive Medicare payments for services supported by an incentive program. The incentive normally provides extra funding on top.

  4. Healthcare providers must keep required records and comply with program rulesSeparate legal rules covering eligibility, payments and administration.. Officials can revoke approval or ban providers for serious breaches or fraud.

  5. Healthcare providers can challenge decisions through two internal reviews and the Administrative Review TribunalAn independent body that reviews government decisions., an independent review body.

  6. Healthcare providers may have some applications, eligibility checks or payments processed by computer. Published procedures, human corrections and review rights provide safeguards.

  7. Healthcare providers may have relevant information shared with approved outside organisations for program administration. Separate rules must limit who receives it and why.

Show source excerpts
  1. This item inserts a new Part V of the Health Insurance Act after Part IVAA. The new Part V makes provision for the establishment and administration of incentive payment programs. ​– Simplified outline New section 47 inserts a simplified outline for the new Part V, to assist readers in understanding the substantive provisions. The new Part provides for incentive payment programs under which the Commonwealth may make payments to participants. The incentive payment programs rules may prescribe an incentive payment program only if it relates to one or more matters set out in subsection 48(2). Th
    Health Insurance Amendment (Incentive Payments and Other Measures) explanatory memorandum
  2. Transitional arrangements are intended to bring existing participants of these programs under the new legislation without any need to reapply for the programs. The establishment of these programs and significant matters in relation to the eligibility and administration of these programs is being deferred to rules instead of setting these matters out in primary legislation. This is because of the range of programs, all of which have different eligibility criteria, participation requirements and payment calculations. Many program requirements are also subject to change over time, for example, a
    Health Insurance Amendment (Incentive Payments and Other Measures) explanatory memorandum
  3. Item 3 – After subsection 19(2) This item amends section 19 by inserting new subsections (2A), (2B) and (2C) after subsection 19(2). New subsection (2A) provides that existing subsection 19(2) does not apply to professional services that are rendered under or for the purpose of an incentive payment program; and apart from the incentive payment program, subsection 19(2) would not apply in relation to the professional service. Subsection 19(2) currently provides for certain circumstances where medicare benefits are not payable for professional services. These are when the professional service h
    Health Insurance Amendment (Incentive Payments and Other Measures) explanatory memorandum
  4. ​– Keeping records New section 58 sets out record keeping requirements for incentive payment programs participants. ​– Falsely claiming to be an incentive payment programs participant New section 59 imposes new civil penalties for making false claims about participating in incentive payment programs. Patients may choose healthcare providers based on their understanding of expected costs and what health services are available, all of which may be impacted by incentive payments that the provider receives under this Part. These new civil penalties operate as important deterrents against mislea
    Health Insurance Amendment (Incentive Payments and Other Measures) explanatory memorandum
  5. New Division 5 sets out the processes for reconsideration and review of decisions and rights of eligible providers or participants to have decisions affecting them be reconsidered. Division 5 sets out two stages of internal reconsideration of decisions as well as the right to appeal to the Administrative Review Tribunal (ART) for an external merit review of decision. The Secretary or Chief Executive Medicare, as the case may be, also has the power to reconsider a decision on their own motion. Two separate internal review processes are established to provide a clear escalation point for eligib
    Health Insurance Amendment (Incentive Payments and Other Measures) explanatory memorandum
  6. Subdivision A – Automation of incentive payment programs administrative action This subdivision provides for the automation of incentive payment programs administrative actions. The ability to automate incentive payment programs administrative actions under this Part is important to ensure high quality, efficient and timely administration of incentive payment programs. Amendments made by this subdivision enable the Secretary or Chief Executive Medicare to automate specific incentive payment programs administrative actions in a safe, consistent and transparent way. This would include ‘parts’ of
    Health Insurance Amendment (Incentive Payments and Other Measures) explanatory memorandum
  7. The Bill contains provisions that enable the sharing of information for the purposes of administering the incentive payment programs and this may include personal, identifying or health information. These requirements are necessary and proportionate to the objectives of the Bill. Personal, identifying and very limited health information will need to be collected to identify individual healthcare providers and validate patient services to assess their eligibility for incentive payment programs, and calculate payments. The amendments reduce privacy risks and safeguard an individual’s right to p
    Health Insurance Amendment (Incentive Payments and Other Measures) explanatory memorandum

Broader context for this bill

Australia already used major primary-care incentive programs, including bulk-billingThe provider accepts the Medicare payment as the full fee., aged-care, quality, digital-health and rural and remote payments, but several operated without a dedicated legislative scheme for eligibility, compliance and review. Against pressure to make GP care more affordable—while bulk billing had risen above 81% nationally since 2025—the Albanese government responded by introducing a consistent statutory framework and renaming the Health Insurance Act; the House passed the bill on 2 July 2026, but the supplied evidence does not show final passage or implementation.

  1. For many years

    Primary-care incentive programs lacked dedicated legal cover

    Major programs such as bulk-billingThe provider accepts the Medicare payment as the full fee., aged-care, Practice Incentives and Workforce Incentive payments operated without a dedicated scheme for eligibility, compliance and review.

    Health Insurance Amendment (Incentive Payments and Other Measures) explanatory memorandum ↗
  2. Since 2025

    National bulk billing rate rises above 81 per cent

    A parliamentary speech reported that the national bulk-billingThe provider accepts the Medicare payment as the full fee. rate had climbed above 81 per cent and that about 97 per cent of Australians lived within a 20-minute drive of a bulk-billingThe provider accepts the Medicare payment as the full fee. practice.

    Hansard ↗
  3. 27 May 2026

    Mark Butler introduces the bill

    Mark Butler MP introduced the bill in the House of Representatives to establish a statutory framework for Commonwealth primary-care incentive payments and rename the Health Insurance Act.

    Parliamentary timeline ↗
  4. 02 July 2026

    House passes the bill

    The House agreed to the bill at third reading, completing its passage through the originating chamber.

    Parliamentary timeline ↗

How did it move through Parliament?

House Senate
Introduced 27 May 2026

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 27 May 2026

A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.

Second reading moved

Community Affairs review 25 June 2026

Referred to Committee (25/06/2026): Senate Community Affairs Legislation Committee; Report due 14/08/2026

Report due 14 Aug 2026

APH bill page notes
Scrutiny of Bills review 25 June 2026

Considered by scrutiny committee (25/06/2026): Senate Standing Committee for the Scrutiny of Bills; Scrutiny Digest 7 of 2026

Scrutiny Digest 7 of 2026

APH bill page notes
Second reading debate 29 June 2026

The bill reached this recorded parliamentary step.

Second reading debate 01 July 2026

The bill reached this recorded parliamentary step.

Human Rights review 01 July 2026

Considered by scrutiny committee (01/07/2026): Parliamentary Joint Committee on Human Rights; Report 8 of 2026

Report 8 of 2026

APH bill page notes
Second reading debate 02 July 2026

The bill reached this recorded parliamentary step.

House second reading agreed 02 July 2026

The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.

Second reading agreed to

House third reading agreed 02 July 2026

The chamber agreed to the bill at third reading, which completed passage through that chamber.

Third reading agreed to

Introduced 02 July 2026

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 02 July 2026

A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.

Second reading moved

The main case against this bill

Andrew Wallace (Liberal National Party) supported the bill's purpose but argued the government's wider primary-care record was poor. He said the average patient payment for a standard GP visit reached $50.77 from July to December 2025, up from $41.90 two years earlier. He also said GP visits fell by more than 1.8 million compared with the previous year. Michael McCormack (National Party) argued regional communities still lacked bulk-billingThe provider accepts the Medicare payment as the full fee. doctors and sometimes faced a 300-kilometre trip.

The Coalition did not oppose the bill in the House and described a clear framework as sensible. Mark Butler (Australian Labor Party) said existing eligibility rules and payment amounts would not change, while bulk-billingThe provider accepts the Medicare payment as the full fee. rates had risen in every state and territory.

Recorded votes

Amendments at a glance

Recorded amendment and procedural votes grouped by chamber. Expand a vote to see the party breakdown.

House

Defeated

Criticise the government over GP costs and access

Aye 39 No 92

Defeated 39 to 92. Support came from Liberal, Nationals, LNP, and Liberal Party. Opposition came from Labor, Greens, and Community Strong Australia. Minor-party and independent votes were split.

02 July 2026

The proposed change was not agreed.

Party Recorded votes Aye / No
Labor 0 / 89
Liberal 22 / 0
Nationals 13 / 0
Independent 1 / 1
Greens 0 / 1
Community Strong Australia 0 / 1
LNP 1 / 0
Liberal Party 1 / 0
One Nation 1 / 0

These are amendment votes, not the final passage vote on the bill itself.

Who spoke, and what they said

Start here — lead voices

Sponsor speech Supports

Mark Butler

Australian Labor Party • MP 27 May 2026

Mark Butler supports the bill, saying it creates a stronger legal framework for Medicare incentive payments and protects the integrity of government investment in primary care.

Read in Hansard ↗
Lead supporting voice Supports

Andrew Wallace

Liberal National Party • MP 01 July 2026

Andrew Wallace supports the bill because it puts existing health incentive programs on a proper legal footing, although he criticises the government’s record on bulk billing and healthcare costs.

Read in Hansard ↗
Lead voice Supports

Tim Ayres

Australian Labor Party • Senator 02 July 2026

Tim Ayres supports the bill, saying it gives Medicare incentive payment programs a clear and enduring legal framework while improving oversight and protecting public money.

Read in Hansard ↗
Lead voice Supports

Emma Comer

Australian Labor Party • MP 01 July 2026

Emma Comer strongly supports the bill, saying it will provide certainty for bulk-billingThe provider accepts the Medicare payment as the full fee. incentive programs, support general practices and improve affordable healthcare access for Australians.

Read in Hansard ↗

All speeches by bloc

Labor

10 speakers · 12 contributions · 10 support

  1. Tracey Roberts Tracey Roberts supports the bill and urges the House to pass it, arguing that it modernises Commonwealth health incentive programs, strengthens governance and accountability, and gives providers greater certainty.
    “For those reasons, I commend the Health Insurance Amendment (Incentive Payments and Other Measures) Bill 2026 to the House, and I support its passage.”

    Australian Labor Party • MP • 02 July 2026

    Read the full speech in Hansard ↗
  2. Steve Georganas Steve Georganas supports the bill, saying it creates a clear and transparent framework for incentive programs that strengthens accountability, program integrity and access to affordable primary care.
    “This Health Insurance Amendment (Incentive Payments and Other Measures) Bill establishes that clear legislative framework for Commonwealth primary care incentive payment programs, including the Medicare bulk-billing practice incentive program. While these programs have played an important role in our community and an important role in supporting primary care, they've lacked a clear legislative framework—a clear direction. That has affected some of the administration and limited the ability to effectively ensure compliance, maintain the integrity and support the full expansion which this bill fixes. It creates a stronger and more transparent framework for administering incentive programs that support GPs, nurses, clinics and the healthcare providers right across Australia. It strengthens accountability, improves program integrity and provides certainty for the future.”

    Australian Labor Party • MP • 02 July 2026

    Read the full speech in Hansard ↗
  3. Zaneta Mascarenhas Zaneta Mascarenhas supports the bill, saying it gives primary care incentive programs a secure statutory basis and will strengthen bulk-billingThe provider accepts the Medicare payment as the full fee. and affordable Medicare care.
    “Can a parent take a sick child to the doctor without first visiting their bank balance? No-one should have to think twice about seeing a GP when they are sick or injured because of what it might cost and no-one should have to wait days for an appointment because the nearest bulk-billing clinic is booked out for a week. The Health Insurance Amendment (Incentive Payments and Other Measures) Bill 2026 gives primary care group programs like the bulk-billing practice incentive a consistent statutory basis to secure its longevity and sustain the progress that this Labor government is already delivering. That is real progress.”

    Australian Labor Party • MP • 01 July 2026

    Read the full speech in Hansard ↗
  4. Rowan Holzberger Rowan Holzberger supports the bill, saying it strengthens universal Medicare and helps restore bulk-billingThe provider accepts the Medicare payment as the full fee. after years of decline.
    “The Albanese government—I think this certainly competes for most amazing public policy—methodically approached the issue by tripling the bulk-billing rate for pensioners and kids, immediately stabilising bulk-billing so that practices who were bulk-billing were at least able to maintain that. But then there was that night in November when we were able to actually bring it back to life. So the great Labor project continues. Bulk-billing under Medicare is something which can't just be achieved on the shop floor. But, because it's achieved through the parliament, it is universal, and it is that universality which is sacred to the Labor project and sacred to Medicare. To that end, I commend the bill to the House.”

    Australian Labor Party • MP • 01 July 2026

    Read the full speech in Hansard ↗
  5. Alice Jordan-Baird 2 contributions Alice Jordan-Baird supports the bill, saying it gives primary care incentive programs a clear and consistent legal foundation, strengthens integrity and transparency, and protects public funding while preserving existing payments and eligibility rules.

    Hansard records 2 separate contributions by Alice Jordan-Baird on this bill. They are grouped here so the speaker is listed once.

    Second reading speech Australian Labor Party • MP • 01 July 2026

    Alice Jordan-Baird supports the bill, saying it will strengthen the integrity, transparency and sustainability of Medicare primary healthcare funding.

    “It is an honour to rise in support of the Health Insurance Amendment (Incentive Payments and Other Measures) Bill 2026, brought forward by the Minister for Health and Ageing, and I commend him for doing so. This bill is an important step in strengthening the integrity, transparency and sustainability of Medicare primary healthcare funding. Australia has one of the best healthcare systems in the entire world. We're regularly compared to our international counterparts, and Medicare is the very best of Australia, and it's a system built and backed by successive Labor governments every step of the way.”
    Read this contribution in Hansard ↗

    Second reading speech Australian Labor Party • MP • 02 July 2026

    Alice Jordan-Baird supports the bill, saying it gives primary care incentive programs a clear and consistent legal foundation, strengthens integrity and transparency, and protects public funding while preserving existing payments and eligibility rules.

    “This bill is about protecting Medicare. It's about making sure these programs have the strong legislative foundations they deserve. It strengthens integrity, it improves transparency, it gives providers greater certainty and it helps ensure public funding is spent where it should be. Most importantly, it helps protect the programs that Australians rely on—programs that make it easier to see a GP, programs that support our health workforce, programs that make health care more affordable and more accessible—because every Australian deserves access to quality health care no matter where they live, no matter how much they earn. That has always been the Labor way, and it's what this government is delivering—stronger Medicare, better health care and a health system that's there for every Australian. I commend this bill to the House.”
    Read this contribution in Hansard ↗
  6. Trish Cook Trish Cook strongly supports the bill, saying it strengthens Medicare by giving primary care incentive programs a clear legislative basis and helping Australians access affordable, high-quality care.
    “This bill is about fairness. It's about ensuring that whether you live in Gosnells, Toodyay, Beverley, Chidlow or Gidgegannup, you can access affordable, high-quality care. It's about backing local practices and healthcare workers, and it's about building a stronger Medicare for the future. As someone who has worked extensively in our health system, I am proud to support this bill. As the member for Bullwinkel, I'm proud to stand up for my communities, the patients, the providers and the families who rely on Medicare every day. I commend this bill to the House.”

    Australian Labor Party • MP • 01 July 2026

    Read the full speech in Hansard ↗
  7. Anne Stanley Anne Stanley supports the bill, saying it creates a clear framework for Medicare incentive payments, strengthens program integrity and helps expand bulk billing.
    “To stand here as a member for Werriwa to speak about this bill and Medicare is a privilege. The cost-of-living pressures in the electorate are real, but the Medicare incentive program makes a real difference to thousands in my electorate, and it means they don't have to think twice about seeing their GP if they're unwell. I commend the bill to the House and thank the minister for bringing it forward.”

    Australian Labor Party • MP • 02 July 2026

    Read the full speech in Hansard ↗

Coalition

2 speakers · 2 support

  1. Michael McCormack Michael McCormack says the coalition supports the health incentive payment programs and will not oppose the bill, but wants Senate committee scrutiny and backs an amendment highlighting the government's failures in primary care.
    “The coalition supports Commonwealth health incentive payment programs. In fact, just like putting drugs on the PBS, we established several of these whilst in government. The coalition is not opposing the bill in the House, but we do believe earnestly that the Senate Community Affairs Legislation Committee needs to examine this and needs to give it further scrutiny because, often with Labor, the devil is in the detail. I know the member for Lindsay has moved an amendment, and I commend that to the House. That particular amendment highlights the government's failings and actions in some areas of primary care. Certainly, we will continue to look at Labor's comments and statements around Medicare, and we'll continue to hold the government to account, as a good opposition should. We have to.”

    National Party • MP • 01 July 2026

    Read the full speech in Hansard ↗

Full record

Full chat