Understanding Section 19AB and DPA in Australia
In Australia, Section 19AB and DPA (Distribution Priority Area) are closely related but refer to different things.
Section 19AB
Section 19AB of the Health Insurance Act 1973 restricts certain doctors from accessing Medicare provider numbers. It mainly applies to:
→ Overseas-trained doctors (OTDs)
→ Foreign graduates of accredited medical schools (FGAMS) who studied in Australia or New Zealand while on temporary visas.
This restriction is commonly called the 10-year moratorium. During this period, affected doctors generally cannot bill Medicare unless they qualify for a 19ab exemption.
What is a DPA?
A Distribution Priority Area (DPA) is a geographic area identified by the Australian Government as having a shortage of GP services. DPA status is based on community need and GP workforce distribution and is reviewed regularly.
How they work together
For a GP who is subject to Section 19AB:
→ Working in a DPA location allows GPs to obtain a Medicare provider number through a Section 19AB exemption. This will allow the Doctor to obtain a Medicare provider number, and their eligible services can attract Medicare rebates.
→ Working outside a DPA generally means they cannot access Medicare provider numbers unless they qualify for another specific exemption (such as certain after-hours, Aboriginal health service).
Section 19AB Moratorium Scaling
The Section 19AB scaling program is an incentive that allows eligible overseas-trained doctors (OTDs) and foreign graduates of accredited medical schools (FGAMS) to reduce the time they are required to work in workforce shortage locations under the 10-year moratorium. This encourages doctor to work in rural and remote areas. The more remote the location, the greater the number of scaling credits earned, allowing doctors to complete their moratorium sooner.
To be eligible for scaling, doctors must:
→ Be subject to Section 19AB restrictions.
→ Work in an eligible Distribution Priority Area (DPA) (for GPs) or District of Workforce Shortage (DWS) (for non-GP specialists).
→ Claim Medicare Benefits Schedule (MBS) services and meet the minimum monthly Medicare billing threshold (currently $5,000). Scaling credits are applied automatically once the billing threshold is met
The amount by which the moratorium can be reduced depends on the remoteness of the practice location:
| Remoteness Area | Potential Reduced Moratorium |
| RA1 (Major Cities) | No reduction |
| RA2 (Inner Regional) | 9 years |
| RA3 (Outer Regional) | 7 years |
| RA4 (Remote) | 6 years |
| RA5 (Very Remote) | 5 years |
Once the Doctor has met the requirements to have their moratorium scaled down, the Doctor will receive a 19ab exemption which will allow the Doctor to work in any location (DPA and non DPA location).
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