Record $175M Boost to GP Funding to Deliver Faster, Fairer Health Access

General practices across New Zealand are set to receive the largest funding boost in the nation’s history as part of Budget 2025, in a move that aims to radically improve access to timely, quality healthcare at the frontline of the health system. Health Minister Simeon Brown announced a total investment of $175 million in GP funding for this financial year, describing it as a “game-changing” step in rebuilding and strengthening primary care.

Putting Primary Care at the Heart of Reform

“This Government is focused on delivering real results,” said Minister Brown. “When you can see your doctor or nurse earlier, you stay healthier and out of hospital. That’s better for patients, better for the system, and exactly what we are here to deliver.”

The announcement comes amid growing concerns over stretched GP services, with many clinics no longer accepting new patients or offering timely appointments. This new funding is intended to reverse those trends by supporting clinics to see more patients, reduce wait times, and better retain staff.

The funding is part of a broader $1.37 billion investment in Health New Zealand.

Key Features of the Funding Package

The landmark $175 million GP funding increase includes:

• 13.89% Funding Uplift: The largest increase since capitation was introduced, effectively doubling the highest previous annual rise.

• $59 million in Capitation Increases: To reflect the number of patients enrolled in general practices.

• $60 million to Improve Access: Targeted at improving appointment availability and encouraging data reporting for performance-based incentives.

• $30 million in Performance Payments: Focused on increasing childhood immunisation rates, with rewards for clinics achieving or significantly improving coverage.

• $26 million in Fee Support: Designed to keep consultation fees capped for community service card holders and prevent cost increases for children under 14.

• $5 million for Minor Planned Procedures in the Community: Aims to shift care from hospitals into GP clinics, covering treatments such as skin excisions, iron infusions, and minor gynaecological services.

Minister Brown emphasized that the funding ties financial investment directly to improved outcomes. “This is how you rebuild a health system – not with slogans, but with funding, focus, and delivery.”

Prioritising Prevention and Performance

The agreement with general practice leaders also sets a bold new benchmark for childhood immunisation. Clinics that increase immunisation rates by up to 10 percentage points—or reach 95% of their enrolled population—will receive full performance payments. Partial improvement will earn proportionate support.

Minister Brown made it clear that “childhood immunisations are a key priority for this Government,” adding that GPs are critical to achieving national targets.

Another major component of the agreement is the increased collection and use of primary care data. Health New Zealand will work with providers to analyse the data and ensure resources are better directed to the areas that need them most. This performance-informed funding model represents a strategic shift from one-size-fits-all funding to results-driven investment.

Strengthening the Workforce and System Foundations

This boost follows earlier initiatives to grow the healthcare workforce, including expanded pathways for medical and nursing students. The funding will allow clinics to attract, hire, and retain more doctors and nurses as they graduate, easing pressure on existing staff and increasing capacity.

“Supporting GP clinics to deliver minor planned care procedures closer to patients in the community takes pressure directly off our hospitals,” Minister Brown said.

He also thanked sector groups such as GenPro, General Practice New Zealand (GPNZ), and Te Kāhui Hauora Māori for their collaboration and advocacy during the development of the new funding agreement.

A Clear Signal of System Rebuilding

This investment is not just about more money, but about measurable results. Patients will notice shorter wait times. More children will be vaccinated. Fewer people will end up in hospital for treatable conditions. And general practices will have the tools and staff they need to deliver care closer to home.

“This is the largest investment in general practice in decades,” Brown concluded. “But more importantly, it’s tied to better results. That’s how we restore the health system—by putting primary care at the centre.”