Universities will be offered more student places in a bid to boost the number of doctors in regional areas.
The federal government will spend $114 million over the next four years to increase the number of Commonwealth-supported university places for rural-trained medical students.
The increase will see 80 new medical places a year from next year.
A further $82 million will be set aside for rural medical school infrastructure investments.
The funding follows concern regional and rural locations did not have enough doctors in towns, with many relocating back to urban areas.
Health Minister Mark Butler said the funding would increase the supply of rurally trained doctors entering the medical workforce.
“It’s so important to ensure that opportunities are available for students who want to study in the regions,” he said.
“We know that if you study at a regional university, you’re more likely to put down roots and become a valued member of the community.”
Universities with medical schools or tertiary institutions that have partnered with a medical school will be able to apply for additional commonwealth-supported places.
Grants as part of the program will be announced in August.
Education Minister Jason Clare said it was critical for regional areas to have more medical professionals working in the community.
“This important initiative will ensure more medical students study, train and live in regional and rural communities,” he said.
“More doctors living and practising in the bush is good for the health of families and good for the health of our regional communities.”