The Federal Government’s 2024/2025 budget is mixed news for the clinical radiology sector

The Federal Government’s 2024/2025 budget that was delivered this week is mixed news for the clinical radiology sector. There were some notable wins and other muted gains. With the imminent launch of the new Medicare schedule, radiation oncology did not feature strongly in this budget.

The highlight announcement was $69.8m to fund the removal of the licensing system for MMM1 areas with the staged process commencing in mid-2025. 

• From 1 July 2025, any practice location that currently holds either a full or partial licence will receive a ‘practice-based’ licence which provides full Medicare eligibility to all MRI equipment located at the practice site.
• From 1 July 2027, all comprehensive diagnostic imaging practices will have their ineligible MRI machines upgraded to access all Medicare funded MRI services.

In our post budget discussions with the Department of Health and Aged Care they have committed to providing further information to radiology with a fact sheet outlining the staged process. RANZCR will be monitoring the rollout closely as it progresses to ensure a smooth transition.

RANZCR has been strongly advocating for the complete removal of MRI licences for over a decade and this announcement is a result of the continual campaigning with our elected decision makers and the Department of Health and Aged Care. Through numerous robust budget submissions and face to face meetings with many MPs we have achieved a breakthrough and finally an end date for MRI licenses all together. I wish to thank both clinicians and staff for their unwavering commitment to advocating for this important change.

By listening to RANZCR and ceasing the licensing system altogether, the government has committed to more equitable access, which is in an important win for Australian patients. 

Other good news announced in the budget included $92.8 million to improve the viability of nuclear medicine imaging through a targeted schedule fee increase and the reintroduction of annual indexation, aligning with indexation arrangements for other diagnostic imaging.

• From 1 November 2024 the subgroup for non-PET imaging services will receive a one-off fee increase of 3.5%, followed by annual indexation from 1 July 2025 onwards.
• From 1 July 2027 the remaining subgroups (PET services and adjunctive services) will be indexed annually.

An unwelcome announcement is the reduction by 2% of the schedule fee for all CT services from 1 November 2024. This measure facilitates reinvestment of funds in MRI and nuclear medicine imaging. The change will not apply to the proposed lung cancer screening items to commence from 1 July 2025.

Other positive measures in the budget include:

• The amendment of the existing pelvic MRI MBS item 63476 to include its use for the restaging and follow up of rectal cancer from 1 November 2024.
• An extension of the availability of, and an increase in schedule fees for temporary Thallium-201 and Gallium-67 MBS items 61470 and 61477 from 1 July 2024 until 30 June 2026
• Implementation of a new MBS item for PET imaging to assess treatment response and recurrence of eligible rare or uncommon cancers to be introduced from 1 November 2024. 

Additionally, there will be $10.3m funding to support the implementation of the Regional Cancer Treatment Centres for Radiation Therapy program in New South Wales, Victoria and South Australia. Funding is provided to support the establishment of Comprehensive Cancer Centres in Brisbane, Perth and Adelaide.

RANZCR will continue to firmly advocate for our profession at all levels of government to get the best outcomes for our members and patients.