Abolishment of non-compete clauses for employees, new investments in public hospitals and cheaper government-subsidised medicines are among the 2025/26 Federal Budget announcements that may be of interest to the Australian ophthalmic sector.
The big headline to come out of the health budget was a record $8.5 billion to lift bulk billing rates and build the health workforce. Mainly focused at incentivising GPs, it’s hoped nine out of 10 GP visits will be fully bulk billed by 2030 – tripling the current number.
Macular Disease Foundation Australia (MDFA) has recently called for a similar incentive scheme to lift bulk billing rates for intravitreal anti-VEGF injections. While this hasn’t eventuated to date, the organisation was pleased with the Federal Government’s “increased investment to make primary health care more affordable and accessible for Australians doing it tough due to the current cost of living crisis”.
“We fully support increasing bulk-billing incentives in general practice and the positive cost-saving outcomes,” the body said.
“We recently welcomed the Federal Government’s decision to defer the private health insurance reclassification of intravitreal injections from 1 July 2025 to 1 July 2026 and undertake further consultation. This must be an opportunity to address the overall affordability of sight saving injections, particularly for financially vulnerable Australians in need of this treatment.
“As people with neovascular age-related macular degeneration require frequent and ongoing eye injections, MDFA will continue to make recommendations to the government about ways to increase access to affordable eye injection treatment, including incentivising ophthalmologists to bulk bill Australian pension card holders who require sight-saving treatment.”
For optometry business owners and employees
In a move that may benefit many optometry and optical dispensing employees, the government has also vowed to abolish non‑compete clauses for most workers.
“Non‑competes are holding too many Australians back from switching to better, higher‑paying jobs,” treasurer Mr Jim Chalmers said.
“More than three million Australians are captured by these clauses. People shouldn’t need to hire a lawyer to take the next step in their career. Or permission from their old boss if they want to be their own boss, and turn an idea into a small business.”
Optometry Australia (OA) said this related to low and middle income workers. The Productivity Commission estimates this reform could lift productivity, reduce inflation, improve GDP by $5 billion and boost wages by up to 4%.
“We will update as more details on this announcement become available,” OA said.
“For eligible small businesses, the government is also extending energy bill relief for six months to the end of 2025, making available rebates up to $150.”
OA noted the government would invest to strengthen the Australian Competition and Consumer Commission’s enforcement of the Franchising Code.
And an estimated 1.5 million sole traders will benefit from the government’s income tax reductions.
“The Opposition’s Budget reply speech later this week holds particular relevance and we will update on any announcements directly relevant to optometry, optometrists and eye health,” OA added.
“As we move closer to the official pre-election campaign period, and expect more policy commitments from all major parties, we encourage all members to get behind our federal election campaign to re-instate two-yearly rebates for under 65 year olds for initial comprehensive exams.
“An astounding 500 optometrists have already lent their voice to this important push. It’s crucial we don’t ease up now.”
Cheaper PBS scripts
Other major announcements included reducing the maximum price for a Pharmaceutical Benefits Scheme (PBS) script from $31.60 to $25, in a move that will be of interest to patients accessing eye drops, intravitreal injections and other ophthalmic pharmaceuticals via the program.
Pensioners and concession cardholders will still pay $7.70 a script.
“We’re also investing $1.8 billion to list more life‑changing and life‑saving medicines on the PBS,” health minister Mr Mark Butler added.
“We are strengthening [the PBS] because Australians need us to, not weakening it because American multinationals want us to.”
Cutting public surgery wait times
Public hospitals, where cataract extraction accounts for 11% of all procedures with more than 83,000 surgeries annually, also received a boost.
The Federal Government has vowed to “fairly fund” the public hospital system, including an uplift for the Northern Territory, with an additional $1.8 billion to help states and territories to cut waiting lists, manage ramping, and reduce emergency department waiting times.
Eye surgery patients will hope this reduces the time they wait for surgery, with these patients facing the second-longest wait times on average, second only to ENT surgery, according to the latest Australian Institute of Health and Welfare (AIHW) data.
The total Commonwealth contribution to state-run public hospitals will increase by 12% to reach a record $33.9 billion in 2025-26.
More reading
Ophthalmic sector highlights from Federal Budget 2024/25
MDFA calls for $11m ophthalmology bulk billing incentive for eye injections
How eye surgery fared in 2023-24 AIHW wait time report card
