For International Medical Graduates (IMGs) looking to practice in Australia, understanding the General Practitioner (GP) billing system is crucial. Unlike salaried positions in many countries, Australian GPs work on a fee-for-service model, meaning their income is based on billings rather than a fixed salary.
This guide will break down how GP billing works in Australia, the different billing methods, and what IMGs need to know to navigate the system effectively.
1. How Are GPs Paid in Australia?
In Australia, General Practitioners are independent contractors, not salaried employees. This means they earn income based on the medical services they provide, with fees charged to Medicare, private patients, or insurance companies.
A GP’s total income is known as “billings”, which is the total revenue generated from patient consultations. However, not all of this amount goes directly to the GP—part of it is retained by the medical practice to cover operating costs.
GP Income Breakdown
✔ Billings = Total income from patient consultations
✔ Practice Percentage = The portion retained by the clinic (30-40%)
✔ GP Earnings = The percentage of billings paid to the doctor (60-70%)
Example Calculation
If a GP generates $10,000 in billings per week and has a 70% billing split, their earnings would be:
✅ $10,000 × 70% = $7,000 per week
✅ Over 46 working weeks, this would be $322,000 before tax per year
📌 Related Resource: GP Salaries in Australia Explained
2. Types of GP Billing in Australia
GPs in Australia bill patients using three main methods:
1. Bulk Billing (Medicare Covers 100%)
- Patients pay nothing—the GP bills Medicare directly.
- Medicare reimburses the GP a set fee per consultation, known as the Medicare Benefits Schedule (MBS) fee.
- Common in bulk-billing clinics where consultations are shorter and high patient volume is prioritised.
Example:
✅ A standard 6–20 minute consultation (MBS Item 23) is billed at $41.40 under Medicare.
✅ The GP receives only the MBS rebate, with no extra charges for the patient.
2. Mixed Billing (Medicare + Patient Gap Payment)
- Patients pay an out-of-pocket fee (gap payment) in addition to the Medicare rebate.
- More financially rewarding for GPs than bulk billing.
- Common in urban and suburban clinics.
Example:
✅ The MBS Item 23 rebate is $41.40.
✅ The clinic charges $80 per consultation, meaning the patient pays the $38.60 gap fee.
3. Private Billing (No Medicare Involvement)
- Patients pay the full consultation fee upfront.
- Used in specialist GP services, corporate clinics, and high-income areas.
- More profitable but limits patient volume.
📌 Check out the latest MBS fees here: Medicare Benefits Schedule
3. How Does Medicare Affect GP Earnings?
What is Medicare?
Medicare is Australia’s public healthcare system that subsidises essential GP services for citizens and permanent residents.
Can International GPs Bill Medicare?
IMGs cannot immediately bill Medicare unless they meet certain conditions:
✅ IMGs on the PEP Specialist Pathway can bill at full Medicare rates.
✅ Non-vocationally registered (non-VR) GPs earn less per consultation until they obtain Fellowship.
✅ GPs working in a Distribution Priority Area (DPA) or District of Workforce Shortage (DWS) may qualify for Medicare benefits faster.
📌 Learn about DPA & DWS locations here: Health Workforce Locator
4. What Percentage of Billings Do GPs Receive?
The percentage of billings paid to the GP depends on experience, location, and employment agreements.
Typical GP billing splits:
✅ 60% to GP / 40% to Practice – Standard for new IMGs.
✅ 65% to GP / 35% to Practice – Common for experienced GPs.
✅ 70% to GP / 30% to Practice – Senior GPs or high-demand locations.
📌 Higher percentages are often available for rural positions due to the demand for doctors in these areas.
5. How Can GPs Maximise Their Income?
Since Australian GPs operate on a fee-for-service model, income depends on patient volume, efficiency, and service type.
Tips to Increase GP Earnings
✔ Work in a DPA or rural area – Higher Medicare rebates and incentives.
✔ Use mixed or private billing instead of bulk billing.
✔ See more patients per hour – Efficient consultations maximise billings.
✔ Offer specialised services – Skin checks, mental health plans, and chronic disease management attract higher rebates.
✔ Work weekends and after-hours – Higher MBS rebates apply for out-of-hours services.
📌 Explore rural GP incentives here: Workforce Incentive Program
6. Additional Income Considerations for GPs
Minimum Guaranteed Earnings for New IMGs
Some practices offer minimum hourly guarantees to help new GPs transition into the system.
✅ $150–$200 per hour for the first 3 months.
✅ Some practices guarantee $150,000 for the first year.
Relocation and Incentive Bonuses
- Some practices offer relocation payments to help IMGs move to Australia.
- Sign-on bonuses may be available for rural and remote positions.
📌 For GP job listings with incentives, visit: DoctorConnect
Final Thoughts: Is the GP Billing Model Beneficial for IMGs?
✅ High earning potential – GPs can earn $250,000 to $400,000+ per year.
✅ Flexibility – Choose how many patients to see, billing method, and working hours.
✅ Pathway to PR – Many IMGs transition from temporary visas to permanent residency.
While GP billing in Australia may be different from salaried positions in other countries, it rewards efficiency, patient care, and specialisation. For IMGs, understanding Medicare billing, optimising patient load, and choosing the right practice setting are key to maximising earnings and building a successful career.
🚀 Need Help Navigating Your GP Career in Australia?
✅ Get expert visa and registration support at MedMigration.
✅ Prepare for AMC exams with IMG SOS.
✅ Find DPA & Rural GP Jobs at DoctorConnect.
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