
Australia's health system is jointly run by federal, state, and territory governments, and local municipalities. The system provides safe and affordable healthcare for all Australians, with Medicare, the country's universal health care scheme, providing free or low-cost access to public hospital services and subsidised physician services. Doctors in training are not employed by a Commonwealth employer and often work for different state and territory employers during their training. Public hospitals and health services are individual employers represented by the Victorian Hospitals Industrial Association.
| Characteristics | Values |
|---|---|
| Health system administration | Run jointly by federal, state, territory, and local governments |
| Health system quality | One of the best in the world |
| Health care affordability | Safe and affordable health care for all Australians |
| Health care access | Medicare provides free or low-cost access to most health care services |
| Health care coverage | Medicare covers public hospital services and some or all costs of other health services |
| Health care funding | Public hospitals receive majority of funding (92%) from federal and state governments |
| Health care providers | Primary care services delivered by general practitioners (GPs) |
| Health care insurance | Approximately half of Australians buy private supplementary insurance |
| Health workforce | In 2015, Australia had 3.52 physicians per 1000 population |
| Health workforce shortage | A shortage of nearly 3,000 doctors and over 100,000 nurses predicted in 2025 |
| Health workforce initiatives | The Australian Government offered free online COVID-19 training to nurses |
| Health workforce planning | The National Medical Workforce Strategy guides long-term collaborative medical planning |
| Doctor employment | Doctors in training are not employed by a Commonwealth employer; public hospitals and health services are individual employers |
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What You'll Learn
- Doctors' employment varies between states and territories
- Public hospitals and health services are individual employers
- Medicare covers the costs of public hospital services
- The Australian government funds initiatives to attract doctors to rural regions
- The Australian government funds medical research and innovation

Doctors' employment varies between states and territories
Australia's health system is jointly run by the federal, state, and territory governments, and local authorities. While doctors' employment varies between states and territories, doctors in training are generally not employed by a Commonwealth employer such as the Department of Health and Ageing. They are often required to move between different state and territory employers as part of their training.
Each state and territory is responsible for its own public hospitals and health departments. For instance, Queensland Health is responsible for public hospitals and health services in Queensland. Public hospitals receive the majority of their funding (92%) from federal and state governments, with the remainder coming from private patients and their insurers. Most of the public hospital funding (66% of total recurrent expenditures) goes toward the salaries of employed physicians.
The Australian government also funds various health programs and services, such as the National Diabetes Services Scheme, which delivers diabetes-related products at affordable prices. The government also maintains the number of doctors in Australia through Commonwealth-funded university places, ensuring they are distributed equitably across the country.
The Australian Medical Association (AMA) provides a Junior Doctors Employment Guide, which outlines the different awards and agreements for junior doctors in each state and territory. This guide assists doctors in understanding the state systems and provides information on employment conditions, pay levels, and leave entitlements.
Overall, while doctors' employment conditions may vary across Australia's states and territories, the health system is jointly managed by multiple levels of government to ensure safe and affordable healthcare for all Australians.
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Public hospitals and health services are individual employers
Australia's health system is jointly run by the federal, state, territory, and local governments. The system provides safe and affordable healthcare for all Australians, with Medicare offering free or low-cost access to public hospital services and GP visits. However, doctors in Australia are not directly employed by the government.
Public hospitals and health services in Australia are individual employers, with each state and territory responsible for their own public hospitals and health departments. For example, Queensland Health is responsible for public hospitals and health services in Queensland, while the New South Wales Ministry of Health oversees these services in New South Wales. This means that doctors working in public hospitals are employed by the respective state or territory health service rather than the federal government.
The number of doctors employed by each state or territory health service varies and is influenced by factors such as population, demand for healthcare services, and the distribution of medical resources. According to a 2011 census, there were approximately 70,200 medical practitioners, including doctors and specialist medical practitioners, working in Australia. However, a report by HealthWorkforce Australia in 2012 predicted a shortage of nearly 3,000 doctors by the year 2025, underscoring the ongoing need to attract and retain medical professionals in the public health sector.
To address workforce shortages and ensure an adequate supply of doctors, the Australian government plays a role in maintaining the number of doctors through Commonwealth-funded university places. By funding medical education, the government can influence the distribution of doctors across the country, ensuring that rural and remote areas have access to healthcare services. Additionally, the government invests in medical research and innovation through the Medical Research Future Fund, aiming to improve healthcare for all Australians.
In summary, while the Australian government plays a crucial role in funding and regulating the healthcare system, the direct employment of doctors is typically handled by individual public hospitals and health services operated by state and territory governments. This decentralized approach allows for more localized control over healthcare delivery and ensures that each state or territory can meet the specific needs of its population.
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Medicare covers the costs of public hospital services
In Australia, Medicare has been the universal health care scheme since 1984. It is jointly run by the federal, state, and territory, and local governments. Medicare covers all of the costs of public hospital services. It also covers some or all of the costs of other health services, including services provided by general practitioners (GPs) and medical specialists. Medicare also covers physiotherapy, community nurses, and basic dental services for children.
Medicare Part A (Hospital Insurance) covers inpatient hospital care if you meet specific conditions. You must be admitted to the hospital as an inpatient after an official doctor's order, stating that you require inpatient care to treat your illness or injury. Medicare Part A covers up to 190 days of inpatient mental health care in a freestanding psychiatric hospital during your lifetime. It also includes inpatient care as part of a qualifying clinical research study.
Public hospitals in Australia receive the majority of their funding (92%) from the federal and state governments. Most of the public hospital funding (66% of total recurrent expenditures) goes toward the salaries of employed physicians. Medicare is available to Australian and New Zealand citizens, permanent residents in Australia, and people from countries with reciprocal agreements. Enrollment is automatic for citizens, who receive free public hospital care and substantial coverage for physician services, pharmaceuticals, and certain other services.
Medicare is financed through general tax revenue and a government levy. The Pharmaceutical Benefits Scheme (PBS), which pre-dates Medicare, is generally considered a separate health policy. The PBS subsidises certain prescribed pharmaceuticals, making some prescription medicines cheaper.
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The Australian government funds initiatives to attract doctors to rural regions
The Australian government is responsible for funding and maintaining the country's health system, which is considered one of the best in the world. It provides safe and affordable healthcare for all Australians, including Medicare, a universal health insurance programme.
Despite this, there is a recognised shortage of health professionals in Australia, with a report from HealthWorkforce Australia predicting a shortage of nearly 3,000 doctors by 2025. This shortage is particularly felt in rural and regional areas, where it is more challenging to attract and retain doctors.
To address this issue, the Australian government has implemented several initiatives to attract doctors to rural regions. One such initiative is the Stronger Rural Health Strategy (SRHS), which aims to build a sustainable and high-quality health workforce distributed across the country according to community needs. The SRHS includes incentives, targeted funding, and bonding arrangements that encourage doctors to train and practise in rural areas. It also strengthens the role of nurses and allied health professionals in delivering multidisciplinary care.
The Australian government has also introduced the Single Employer Model (SEM), which supports GP and rural generalist registrars training in the community. This model allows registrars to be employed by the South Australian Health Service as salaried employees, providing stability and removing barriers to training in rural areas.
Additionally, universities can now apply for additional Commonwealth Supported Places (CSPs) for rural-trained medical students and capital funding for new regional training facilities. This initiative aims to increase the number of rurally trained doctors and improve access to essential health services for rural communities.
These initiatives demonstrate the Australian government's commitment to ensuring equitable access to healthcare for all Australians, including those in rural and regional areas.
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The Australian government funds medical research and innovation
Australia's health system is jointly run by federal, state, and territory governments and local governments. It is considered one of the best in the world, providing safe and affordable healthcare for all Australians. The Australian government funds medical research and innovation through the Medical Research Future Fund (MRFF), a $22 billion long-term investment supporting Australian health and medical research. The MRFF was established on 26 August 2015 by the Medical Research Future Fund Act 2015. It provides an ongoing funding stream for medical research and innovation, with the credits to the MRFF preserved in perpetuity. The capital of the MRFF is invested, and the earnings are used to provide grants for medical research and innovation. The Maximum Annual Distribution Amount (MADA) is determined each year by the Future Fund Board and specifies the amount that can be drawn from the MRFF for medical research and innovation grants.
The Australian government also funds health and medical research through the National Health and Medical Research Council. Additionally, the government subsidises aged care services and contributes to caregiver programs, such as the Carer Allowance and the Carer Supplement. The National Diabetes Services Scheme is funded by the Australian government to deliver diabetes-related products at affordable prices. The government also funds Healthdirect Australia, which provides access to quality health information and a digital symptom checker for all Australians. Furthermore, the government maintains the number of doctors in Australia through Commonwealth-funded university places and ensures their equitable distribution across the country.
The Australian government also plays a role in funding healthcare through Medicare, the country's universal health care scheme since 1984. Medicare covers the cost of public hospital services and provides substantial coverage for physician services, pharmaceuticals, and other health services. It is financed through general tax revenue and a government levy, with automatic enrollment for citizens. New Zealand citizens, permanent residents, and people from countries with reciprocal agreements are also eligible to enroll. The federal government also provides rebates for private supplementary insurance and charges a tax penalty on higher-income households that do not purchase private insurance.
Public hospitals receive the majority of their funding (92%) from the federal and state governments, with the remaining coming from private patients and their insurers. Most of the public hospital funding (66% of total recurrent expenditures) goes towards the salaries of employed physicians. The government also funds the Pharmaceutical Benefits Scheme (PBS), which subsidises certain prescribed pharmaceuticals to make them more affordable.
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Frequently asked questions
Doctors in training are not employed by a Commonwealth employer such as the Department of Health and Ageing. However, public hospitals and health services are individual employers represented by the Victorian Hospitals Industrial Association. Doctors employed by public hospitals are therefore employed by the government.
In 2015, there were 3.52 doctors per 1000 people in Australia. In 2011, the Australian Census recorded 70,200 medical practitioners, including doctors and specialist medical practitioners.
Australia has a regionally administered, universal public health insurance program called Medicare. It is financed through general tax revenue and a government levy. Medicare covers the cost of public hospital services and some or all of the costs of other health services, including GPs, medical specialists, and physiotherapy.
The Australian government offers initiatives such as free online COVID-19 training for nurses and implements strategies like the Stronger Rural Health Strategy, which aims to address healthcare challenges in rural and remote areas by attracting and retaining healthcare professionals in these regions.
The Australian government shares responsibility for running the healthcare system with state and territory governments. The federal government provides funding for public hospitals, subsidises aged care services, collects and publishes health information, and funds health and medical research.








































