Billions will be spent on helping Australia to prepare for a predicted COVID-19 surge this winter, while out-of-pocket prescription costs will also be reduced for more than two million people.

However, the country's peak medical body has labelled the government's health spend as business as usual for non-COVID measures, saying it did not address key concerns.

The 2022/23 federal budget revealed $6 billion has been set aside for a winter response plan, with a combined COVID-19 and influenza spike in infections predicted in coming months.

A further $1 billion will be spent on extending the COVID-19 vaccine rollout, as people prepare to receive their second booster dose, while $546 million will go towards extending the Medicare Benefits Schedule for pathology items used for COVID testing.

More than $132 billion has been allocated to health spending in the upcoming financial year, with $537 billion to be spent in the area over the next four years.

Spending on Medicare will rise by $7.3 billion to $31.4 billion in 2022/23, with $368 million in additional funding over five years.

However, Australian Medical Association president Dr Omar Khorshid said while the budget claimed there was record spending on health, it was business as normal from the government.

"From a point of view of a solution to Australia's health problems (there is) absolutely nothing," Dr Khorshid told AAP.

"No solution for public hospital performance, ramping, surgical waiting lists, a no funded solution for reform in primary care."

Dr Khorshid said there was also a lack of long-term solutions for health care.

While he welcomed the addition of $6 billion to help tackle COVID-19, he said the government needed to look beyond the virus for health funding.

"What we need to see now is a vision beyond COVID ... that's what's missing from the budget. It's looking beyond COVID and having a vision for Australia's health going forward."

The Pharmaceutical Benefits Scheme safety net threshold will also be reduced for more than 2.4 million people.

From July 1, the threshold at which people can access cheaper medicines will drop from $1542.10 to $1457.10 for general patients, and from $326.40 to $244.80 for concession card holders.

As a result of the changes, concessional patients will reach the threshold with 12 fewer prescriptions each year, while general patients will reach it with two fewer scripts per year.

However, the national president of the Pharmacy Guild of Australia Trent Twomey said the plan failed to address the rising cost of prescriptions, with the maximum co-payment set to rise even further over the coming decade.

"The government's decision to lower the PBS safety net threshold does not go far enough," he said.

"People are struggling to afford essentials and going without their medicines should never be a decision Australians have to make."

An extra $2.4 billion will be spent on creating and amending listings on the PBS, which will include treatment for conditions such as breast cancer, cystic fibrosis, asthma, HIV and heart failure.

Suicide prevention will also be targeted with $547 million in new investments, focusing on young people, Indigenous Australians and people from multicultural communities.

There will be $63.5 million set aside for cancer research, supporting specialist facilities, $32.3 million be provided to support digital health programs.

Australia will soon get a National Allergy Council and a national register for anaphylaxis, with almost $27 million set aside over the next four years.

Australian Council of Social Service chief Cassandra Goldie said it was alarming the free rapid antigen test scheme for concession card holders was ending when they were in greatest need of support.

The budget has forecast that COVID-19 community transmission will continue, with a predicted new Omicron wave expected to see increased rates of absenteeism and put pressure on supply chains.