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Indigenous Health Incentive – Changes to the Practice Incentive Program

The Australian Government announced changes to the Practice Incentive Program (PIP) Indigenous Health Incentive (IHI) as part of the 2021-22 Budget following a national consultation process. The changes are intended to improve continuity of care and health outcomes for Aboriginal and Torres Strait Islander people with a chronic disease and streamline administrative requirements for practices.

From 1 January 2023, the following changes have been made:

  • Eligibility will be expanded to include children under the age of 15.
  • GP Mental Health Care Plans (Medicare Benefits Schedule items 2700, 2701, 2712 and 2717) will be added as eligible items for the purposes of outcomes payments.
  • The requirement to deliver a certain number of services in a calendar year will be replaced with a 12-month rolling window, starting from the date the first eligible service is delivered. This will give practices more time to deliver the services required to achieve outcomes payments.
  • The program will start moving towards a back-ended payment structure. This means the majority of the payment will be provided after a threshold level of care has been provided. A transition period – where registration is gradually reduced, and the Tier 2 payment is gradually increased – will give practices time to adjust to this change.

For further information on Indigenous Health Incentive (IHI) and changes go to: