A capsule endoscopy is indicated when the patient has evidence of gastrointestinal blood loss and the site of bleeding is obscure. This could present as either overt gastrointestinal bleeding, or unexplained iron deficiency. A colonoscopy and upper GI endoscopy will have to have been performed, and have failed to show a potential source for blood loss. These two investigations do need to have been performed within six months of the proposed capsule endoscopy to generate a rebate of the cost of the capsule for the patient. Australia from the outset prospectively collected an extensive dataset on capsule endoscopy and this confirmed the clinical usefulness of this procedure. The yield from capsule endoscopy is higher than had been expected and this allowed the Medical Services Advisory Committee to fund this technology for these specific indications. Capsule Endoscopy is also funded for the further investigation of the small bowel in the polyposis syndromes under specific circumstances. An application has been submitted to MSAC for funding for Capsule Endoscopy in the further investigation of possible Crohn’s disease, again in certain specific instances.