The federal government says its proposed e-health system will improve patient safety and free up GPs.
The system, currently under design, will see patient records stored in one national database that can be accessed by different health professionals.
The government hopes to see the opt-out system up and running in ten years, and says more than $1 million has been put on the table to get it started.
Federal Health Minister Nicola Roxon says it will cut the time GPs spend pulling up patients health records during visits.
She insists the system will be secure and won't affect strict patient privacy laws.
"This doesn't change the existing laws of when it's appropriate for an individual have their records...accessed," she told reporters in Canberra.
States, territories and health professionals will also have to invest in technologies to allow them to link into the system.
Former Australian Medical Association boss Dr Mukesh Haikerwal says it will enhance current medical practices.
"This is the way healthcare should be delivered in the future, safer, more effective and more efficient," he told reporters.
The government will introduce legislation in parliament during the first half of the year, to get the system started.
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