A petrol subsidy provided by the state government would rise from 19 to 22 cents per kilometre.

Commercial accommodation subsidies would jump by at least 75 per cent for stays of between eight and 14 nights and as much as 144 per cent for 15 night-plus stays, under the announcement.

A co-payment required from patients would fall by 25 per cent from $40 to $30.

Health minister Jillian Skinner and Deputy Premier Troy Grant also pledged to make small claims under $100 easier to lodge, among other enhancements to the Isolated Patient Travel and Accommodation Scheme (IPTAAS).

Cancer Council NSW community programs coordinator for the Dubbo district Camilla Barlow said she was relieved the policy included an increase in the reimbursements for accommodation.

"We know from our contact with cancer patients, their families and carers that increasing the accommodation and transport subsidy will help reduce the additional costs that rural and regional cancer patients face when receiving vital treatment," she said.

"We were also pleased to see measures being introduced to simplify the claims process and a commitment to reducing the time it takes for patients to receive their reimbursements.

"We look forward to more information on how the improved administration of the scheme will be achieved, as well as more details on broadening the scheme to cover prosthetic services and some specialist allied health services."

But Ms Barlow said Cancer Council was disappointed there was no mention of the scheme explicitly covering travel to clinical trials.

"We feel that there is always more that can be done by the NSW state government to help improve the health outcomes of cancer patients in Dubbo and the western NSW area - but these changes are definitely a step in the right direction and we very much welcome them," she said.

The Council of Social Service of NSW (NCOSS) also called the changes a boost for patients in the bush. NCOSS chief Tracy Howe said the health and well-being of people living outside metropolitan areas was linked with access to transport to the appropriate health care.

"The ageing demographics of rural and remote areas, as well as the loss of some local health services, has led to ongoing rises in the number, length and complexity of journeys to access health services," she said.

"While new funding for IPTAAS will make a real difference to rural health in NSW, NCOSS continues to urge the NSW government to extend the focus of the scheme beyond just specialist health services."

Mr Grant said as cost of living pressures continued to grow, it was vital they kept IPTAAS in line with community need to remove heavy financial burdens related to patient care.

Labor candidate for Dubbo Stephen Lawrence said IPTAAS was a really important scheme and the commitment was welcome, but the bigger issue on his mind was whether it should remain a state government responsibility or whether a national scheme was needed to ensure health-related travel could be "equitably and properly dealt with".