Australian Government Updates Bonded Medical Program

Australian Government Updates Bonded Medical Program

12 Jan 2026

These changes come after amendments to Part VD of the Health Insurance Act 1973, which received Royal Assent on 4 November 2025.


Amending the Bonded Medical Program Rule

To support the changes to the Act, the Health Insurance (Bonded Medical Program) Rule 2020 has also been updated. In late 2025, feedback was sought on potential improvements to the Program through the Bonded Medical Program – Potential Rule Amendment Consultation, with over 300 responses from participants, universities, and professional bodies. This feedback informed advice provided to the Minister.

The updated Health Insurance (Bonded Medical Program) Amendment (2025 Measures No. 2) Rule 2025 was registered on 19 December 2025 and will be tabled in Parliament, subject to a 15 sitting day disallowance period.


Key Changes to the Program

  • Work completed under the former Medical Rural Bonded Scholarships Scheme or Bonded Medical Places Scheme can now count towards a participant’s Return of Service Obligation (RoSO) if compliant.

  • The previous requirement that half of the RoSO be completed after fellowship or within 12 years of finishing medical school has been removed.

  • Participants from the 2016–2019 Bonded Medical Places Scheme can now complete their RoSO on a part-time or per-day basis.

  • Reporting requirements have been streamlined:

    • Telehealth services now only need proof the service was provided from an eligible location.

    • The number of Notifiable Events participants must report has been reduced from 10 to 6.

    • Participants have more flexibility when reporting their RoSO plans.

Full details of the amendments can be found on the Federal Register of Legislation: Health Insurance (Bonded Medical Program) Amendment (2025 Measures No. 2) Rule 2025.


Next Steps

Processes, documentation, and the Bonded Return of Service System are being updated to reflect the changes. All affected participants will be contacted with details about how the amendments will be implemented.

The Government thanks participants for their patience during this period of transition.

https://www.health.gov.au/news/update-on-changes-to-bonded-medical-program?language=en

Source: Australian Government – Department of Health / Federal Register of Legislation