budget 2014, page-13

Page 133: http://www.budget.gov.au/2014-15/content/bp2/download/BP2_Expense.pdf

"The Government will achieve savings of $3.5 billion over five years by reducing Medicare Benefits Schedule (MBS) rebates from 1 July 2015 by $5 for standard general practitioner consultations and out-of-hospital pathology and diagnostic imaging services and allowing the providers of these services to collect a patient contribution of $7 per service."

"For patients with concession cards and children under 16 years of age the MBS rebate will only be reduced for the first 10 services in each year, after which it will return to current benefit levels. A new Low Gap Incentive will replace bulk billing incentives for providers of these services. The Low Gap Incentive will be paid to providers where they provide services to patients with concession cards or children under 16 years of age and only charge the $7 patient contribution - for the first 10 services in a year, or where they charge no patient contribution - for additional services in that year."

The situation is not clear, as the headline states the rebates are only being reduced by $5. If they are trying to reduce the rebates by around 10% + 5, there will be a much larger backlash against this.

The second paragraph states the bulk billing incentives will be replaced by a new Low Gap Incentive, but doesn't describe what that it.