Federal Budget Disappointment: the Doctors Australia needs most are being priced out.

The Australian Medical Students’ Association (AMSA) objects to the failure of the 2025-2026 Australian Federal Budget to take into consideration key issues in the health workforce.Â
“The future doctors we need most are being priced out…students from backgrounds that need the most support are more likely to work rurally, in lower socioeconomic areas and in general practice. The evidence is clear from both an equity and workforce perspective.” says AMSA President Melody Ahfock.Â
The 2025–26 Federal Budget commits to expanding medical student and GP training positions but fails to address the true drivers of workforce maldistribution as outlined in the National Medical Workforce Data Strategy. Without implementing evidence-based planning, specialty bottlenecks and rural workforce shortages will worsen, particularly in low-income, rural and remote areas where clinicians face isolation, poor resourcing and limited career opportunities.
Alarmingly, no action has been taken to support students from these regions—despite being four times more likely to return and serve their communities—leaving a glaring gap in building a sustainable, equitable health workforce.
“Without financial support, it is impossible to get through the medical degree. Medical school faculty actively discourage students from working, making participating in medical education and affording basic necessities a dream that is out of reach for those without other means.” says Raener Miller, Vice President External of AMSA.Â
The Australian Government has recognised the impact of cost of living on students undergoing placement; in 2024, the Commonwealth Prac Payment scheme was introduced to alleviate cost of living expenses for nurses, teachers and social work students. Disappointingly, medical students have still not been included in this scheme.Â
AMSA advocates to highlight the unique difficulties of medical school placement. Medical students are required to undertake over 2000 hours of placement at a full time capacity and are required to study for more weeks per year than the average university student.Â
We acknowledge that uncapping Commonwealth Supported Places for First Nations students is a step in the right direction. But without commitment to financial, social and cultural support during the medical degree itself, this endeavour is futile. Aboriginal and Torres Strait Islander students represent 4.2% of all medical students at entry, but only 2.3% at graduation, demonstrating the need for more action beyond just increasing student positions.Â
AMSA welcomes the new investments in:Â
1. Creating the future primary care workforce of Australia through increased exposure and incentives for junior doctors to choose general practice.Â
2. Alleviating healthcare related costs of living by funding the Bulk Billing Practice Incentive Program and reducing the maximum cost of medications included in the Pharmaceutical Benefits Scheme to $25.Â
3. Women’s health and wellbeing through subsidisation of life-saving reproductive health medications and addressing gender-based violence.Â
AMSA calls upon the Federal Government to:Â
1. Include medical students in the Commonwealth Prac Payment scheme and invest in the future of healthcare.Â
2. Address healthcare distribution inequality by funding the recommendations from the National Medical Workforce Data Strategy and create an independent health workforce agency.
AMSA is the peak representative body for Australia’s 18,000 medical students. We will continue to advocate for medical students, and all Australians, to study and live in safe conditions.Â
Media Contacts
Melody Ahfock, AMSA President
[email protected]
Kristen Cheng, Public Relations Officer
[email protected]
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