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. Refer below for further information on this from the Department.
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.
New information added 6 July 2026:
Templates
Assignment of benefit templates are now available for download from the Department of Health, Disability and Ageing’s website: Update to Assignment of Medicare Benefit requirements
The following templates are available:
Episodic Pre-Assignment of Benefit Templates
Enduring Agreement templates
Services Australia has also published updated versions of the following forms, which may be used to document a post-assignment agreement:
Use of the Department's templates is optional. Providers may develop their own assignment of benefit agreements, provided they meet the requirements set out in Division 7A of the Health Insurance Regulation 2018.
Verbal agreement
AAPi has received the below response from the Department of Health, Disability and Ageing regarding verbal agreement:
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We recognise concerns about situations when patients, or their authorised representatives, may be unable to provide a physical or electronic signature in a timely or practical manner. Verbal agreement is ok when other options are unavailable. This will be enabled until 30 June 2027, for bulk billed services in all clinical settings.
To enable these agreements, Medicare regulations need to change. The department is prioritising this work. The intent is that changes cover agreements made from 1 July 2026, when other updates to assignment of benefit commenced.
Making a verbal agreement requires the same process and record-keeping as electronic signatures but allows the assignor to agree a different way. Healthcare providers, or people acting on their behalf, are still expected to explain how the assignment of benefit agreement will be completed and obtain consent. The finalised agreement is a written record (physical or electronic) that the provider must store for 2 years.
The following approach is consistent with pre-1 July 2026 verbal assignments for bulk billed telehealth services. Further information is available on Services Australia’s website: Assignment of benefit for bulk bill claims - Health professionals - Services Australia
How to make a verbal agreement
- Present the assignor with details that enable their informed consent. This means the details that are used to make a written agreement. There are example templates available from the department and from Services Australia, although you don’t need to use these if you have your own.
- If the patient agrees, the medical professional should enter 'assignor verbally agreed', e.g. in the assignor signature field.
- The provider should store the completed agreement.
- Send the completed agreement to the patient electronically.
During the transition period, the Department will take a risk-based approach to compliance, prioritising prevention and education as practitioners work towards adopting new assignment of benefit requirements.
We will continue to update guidance and FAQs and are exploring further options to reduce administrative burden while maintaining the integrity of Medicare. This includes in relation to verbal agreements and the associated Medicare regulations that are currently being progressed as a priority. Further information and resources are available at Improving the assignment of benefit process | Australian Government Department of Health, Disability and Ageing including links to templates for episodic and enduring agreements (under ‘Resources’).
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