Australian GPs Income Explained: How Much Can You Earn as a GP in Australia?

If you’re considering working as a General Practitioner (GP) in Australia, understanding how GP income works is crucial. Unlike many professions, Australian GPs are generally contractors, not salaried employees, meaning their earnings depend on the fee-for-service model and total billings. At Doctor Connect, we help GPs navigate their career opportunities and find positions that match both their professional goals and lifestyle.

How GPs Are Paid in Australia

In Australian general practices, GPs are paid primarily through billings generated from consultations, rather than receiving a fixed salary. This model encourages GPs to:

• Provide high-quality patient care

• Build strong patient relationships

• Work efficiently while maintaining a healthy work-life balance

As a result, experienced GPs can achieve an excellent income while enjoying flexibility in their schedules.

Understanding Total Billing

Total billing refers to the overall income generated from your consulting activities. Not all billing goes directly to the GP; a portion covers practice costs, including staff wages, rent, utilities, and other expenses.

Each consultation is billed using Medicare, Australia’s universal health insurance system, often with additional payments from patients. For example:

• A standard 6–20 minute consult is listed as Item 23

• Medicare pays $41.40, and patients typically pay a gap, bringing total income for the consult to around $80

GPs on the RACGP PEP Specialist Pathway receive the full Medicare rebate, just like fully qualified Australian GPs.

Calculating Total Billings

Here’s an example of how total billings translate into income:

• Consultations per hour: 4 patients

• Weekly hours: 38

• Weekly billing: 4 × 38 × $80 ≈ $10,000

• Annual billing (46 weeks): $10,000 × 46 = $460,000

GP Earnings as a Percentage of Billings

GPs do not keep all billing income. Their percentage of billings is agreed upon in the practice’s services agreement. Typical splits include:

• 60% GP – 40% Practice

• 65% GP – 35% Practice

• 70% GP – 30% Practice

For non-VR GPs requiring supervision, percentages may start slightly lower but rise once the GP achieves fellowship.

Example: With $460,000 annual billing and a 70% split, a GP’s pre-tax income would be $322,000.

Taxes and Take-Home Income

Using the Australian Tax Office calculator, a GP earning $322,000 pre-tax could expect an after-tax income of approximately $206,000.

For context, the median weekly earnings in Australia are around $1,300 (≈$67,600 annually). A GP’s income is roughly three times the national average, offering a comfortable lifestyle for you and your family.

Additional Components of GP Income

Minimum Hourly Rate

• Some practices guarantee a minimum rate for the first three months (e.g., $150/hour or 65% of billings, whichever is higher) to help GPs settle into a new role.

Minimum Annual Income

• Certain practices offer a first-year minimum income (e.g., $150,000) for financial stability, with higher percentages once fully established.

Relocation and Sign-On Bonuses

• Many practices provide one-off payments to help with moving costs, sometimes split into multiple instalments.

Car and Accommodation Allowances

• Less common today, but may still exist in smaller or rural practices.

Rural Incentives

• Working in regional towns may provide additional financial incentives and may reduce your 10-year DPA moratorium.

Ways to Increase Your GP Income

The fee-for-service model offers multiple opportunities to increase earnings:

• Working in locations with a GP shortage ensures a fully booked schedule

• Adjusting hours to meet patient demand (e.g., early mornings, evenings, weekends)

• Providing specialised or complex consultations (supported by RACGP specialty pathways)

• Taking advantage of bulk billing incentives, which are often higher in rural areas

Financial Responsibilities for GPs

As a contractor, you’ll need to plan for:

• Tax payments

• Medical registration costs

• Medical indemnity insurance

• Leave provisions (typically 4–6 weeks per year)

• Health insurance (for temporary visa holders until permanent residency)

Doctor Connect can guide you through all these financial considerations and help you find a GP position that suits your lifestyle and goals.

Why Work with Doctor Connect?

At Doctor Connect, we specialise in GP recruitment across Australia, connecting doctors with practices that match their professional expertise and personal lifestyle. We provide support with:

• Salary negotiations and practice agreements

• Understanding total GP income and billing models

• Relocation, sign-on bonuses, and rural incentives

Whether you are a specialist GP, a fellowed GP, or a new VR GP, we help you maximise your income while building a rewarding career.

Disclaimer: This blog provides general information about GP income in Australia. Actual earnings vary by practice, location, and experience. Doctor Connect does not guarantee income but can help you find the right opportunity to flourish professionally and financially.