Health Insurance (Pathology) (Fees) (Repeal) Bill 2025

High-Level Summary

The bill repeals the Health Insurance (Pathology) (Fees) Act 1991 and the Health Insurance (Pathology) (Fees) Amendment (Norfolk Island) Act 2015, removing application charges for approved pathology practitioners, authorities and accredited laboratories under Medicare.

It also amends the Health Insurance Act 1973 to eliminate outdated fee requirements and provides for full refunds of fees paid for accreditation applications that take effect on or after 1 July 2025.


Summary

The Health Insurance (Pathology) (Fees) (Repeal) Bill 2025 amends the Health Insurance Act 1973 and related legislation by:

  • Repealing the Health Insurance (Pathology) (Fees) Act 1991 and its Norfolk Island amendment;
  • Removing definitions and subsections in the Health Insurance Act 1973 (including sections 23DA, 23DC, 23DF, 23DN, 23DNAAA and 23DO) that impose acceptance and accreditation fees for approved pathology practitioners, authorities and laboratories;
  • Revising procedural requirements to maintain accreditation and quality assurance standards without fee payments;
  • Establishing transitional provisions to exempt applications with enforcement dates on or after 1 July 2025 from fees and to refund any fees paid under the repealed Acts;
  • Preserving existing accreditation and review mechanisms while aligning cost recovery with the Australian Government Charging Framework.

The Bill commences the day after Royal Assent, reducing fee revenue by approximately $824,000 per annum and incurring one-off administrative costs to Services Australia of $2.986 million.


Argument For
Normative Bases
  1. Utilitarian Ground Truth
  2. Non-Discrimination

Removing outdated pathology accreditation fees reduces unnecessary administrative burdens on healthcare providers and aligns cost recovery with actual processing costs under the Australian Government Charging Framework. By lowering barriers to accreditation, pathology practices can operate more efficiently, potentially passing on savings to patients and ultimately improving access to essential diagnostic services [Judgment].

The Bill preserves all quality assurance and accreditation requirements while streamlining the approval process. This ensures that patients continue to receive high-quality pathology testing without imposing avoidable financial costs on providers, supporting the overall effectiveness and equity of Australia’s Medicare system [Judgment].


Argument Against
Normative Bases
  1. Value-Neutral / Epistemic Objection

Eliminating pathology fees shifts the cost of processing accreditation applications entirely to the Commonwealth, increasing the annual budget outlay by approximately $824,000 and incurring one-off administrative expenses of $2.986 million. Given limited health budgets, these funds could instead be directed to frontline patient care or other underfunded services [Judgment].

Additionally, application fees act as a modest barrier that encourages providers to maintain compliance with accreditation requirements. Removing this fee signal may reduce the incentive for timely submissions and could complicate the monitoring of accredited entities over time [Judgment].


Date:

2025-07-24

Chamber:

House of Representatives

Status:

Before Senate

Sponsor:

Unspecified

Portfolio:

Health, Disability and Ageing

Categories:

Healthcare, Financial Regulation

Timeline:
24/07/2025
31/07/2025

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