Capital Sensitivity linksthe effective life of equipment to the payment of Medicare Benefits. Practices must upgrade or replace their equipment to ensure their services remain modern. This initiative guarantees patients have access to high-quality diagnostic imaging services.
From the 1st May 2020, Medicare benefits are no longer payable for diagnostic imaging services rendered on equipment that has exceeded its effective life age or maximum extended life (unless the practice has an exemption).
Effective and Life Age of Equipment
The effective life for new equipment and the maximum extended life age for upgraded equipment are shown in the table below.
Modality | Effective Life Age | Maximum life (with ext for upgrades) |
Computer Tomography | 10 years | 15 years |
Ultrasound | 10 years | 15 years |
X-Ray | 15 years | 20 years |
Nuclear Medicine | 10 years | 15 years |
Mammography | 10 years | 15 years |
Fluoroscopy | 15 years | 20 years |
Magnetic Resonance Imaging | 10 years | 20 years |
Angiography | 10 years | 15 years |
In order to calculate the age, refer to the explanation below:
- For new equipment, the age is calculated from the date the equipment was first installed.
- If the equipment was installed and used, age is calculated from the date the:
- equipment was first used (for equipment previously used in Australia)
- equipment’s oldest component was manufactured (for equipment previously used outside Australia).
An equipment upgrade is an additional investment made by the service provider to improve the overall performance of the imaging system so the services provided are equivalent to new equipment.
Please contact us today if you require further information.
