The Australian Government and the Department of Health, Disability and Ageing have announced a significant update to the new Medicare Assignment of Benefit (AoB) requirements that were due to commence on 1 July 2026.
Following extensive feedback from stakeholders, including concerns about the administrative burden associated with the new arrangements, the Department has confirmed that regulatory amendments will be made to support a 12-month transition period.
Verbal assignment of benefit will continue to be permitted for all bulk billed patients, in all settings, during the transition period.
This will provide additional time for health providers and software vendors to adapt to the new requirements while reducing the risk of disruption to patient care and practice operations.
The Department has also advised that it will use the transition period to explore further regulatory and legislative options to reduce administrative burden while maintaining the integrity of Medicare.
The Department has also progressed regulatory amendments introducing an "enduring" Assignment of Benefit option for certain groups of patients from 1 July 2026.
The continuation of verbal Assignment of Benefit arrangements during the transition period is expected to provide welcome relief to psychologists concerned about the practical implications of the new requirements.
The Department is continuing to update its Frequently Asked Questions to provide practical guidance on the Assignment of Benefit changes and has advised that further information will be released once the regulatory amendments are finalised.
The Department has also indicated that its compliance approach during the transition period will focus on education and prevention, recognising that providers are adapting to a significant change in administrative requirements.
AAPi welcomes the Department's recognition of stakeholder concerns and the decision to introduce a transition period. We know many members have been worried about the practical implementation of these changes and the potential administrative burden on psychology practices.
AAPi will continue to engage with the Department to advocate for practical, workable solutions that minimise administrative burden while supporting compliance with Medicare requirements. We will keep members informed as further details become available.
Further information can be found here.