More than 200,000 women will receive $200 towards 3D breast cancer screening as part of the upcoming federal budget.
From November the tests, which cost hundreds of dollars, will be subsidised by Medicare.
"If we can diagnose it early enough then the chances of survival are so much greater, that's why this new Medicare item is so important," Health Minister Greg Hunt told News Corp on Sunday.
Labor welcomed the move, which was recommended by a taskforce that reviews the benefits schedule.
"I think it's important that anything we can do to prevent cancers, to detect cancers early, should absolutely be welcomed," opposition health spokeswoman Catherine King told reporters in Sydney.