Deborah O'Neill (NSW, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Finance, Senator Cormann. Does the GP tax remain a government policy or not?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

What remains the government's policy is that we want to protect Medicare for the long term. We want to ensure that vulnerable patients—in particular pensioners, concession card holders, children and the like—have access to bulk-billing arrangements, but that those of us who can afford to make a small contribution when accessing medical services will do so. The specifics in relation to how all of that will work moving forward are the subject of consultations by the Minister for Health, my valued friend and colleague, Ms Sussan Ley. I am sure she is working closely with the medical profession and other stakeholders on the detail in relation to all of this.

But let me make this point. As a nation we have a challenge to ensure that all Australians can have timely and affordable access to high-quality health care in a way that is also affordable for taxpayers over the medium to long term. That is our challenge, and we are taking that challenge on in the context of an ageing population, increasing demand for medical services and improvement in medical technology and the like. The cost of medical services across Australia has been increasing quite rapidly. About 10 years ago it was about $8 billion; it is about $20 billion now and it is on track to be about $34 billion in about 2024.

As a nation we cannot put our heads in the sand. As a nation we have to grapple with the situation where government expenditure on health is growing more rapidly than our income; it is growing more rapidly than the size of our economy; it is growing more rapidly than inflation, and it is projected to continue to do so for some time to come. In terms of the specific way forward, the Minister for Health will continue to conduct consultations with all relevant stakeholders, and there will be more to say about these things in the future.

Deborah O'Neill (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I was listening to that with both ears, and I think it was, 'GP tax remains the government policy.' On that basis, on what basis did Mr Simpkins announce on Sky News this morning that the Prime Minister had dumped the GP tax?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I have got to admit I have not seen every interview from every colleague over the last week, so I have not seen that particular interview. There have been a few interviews going, so I am still working my way through the transcripts. What the Prime Minister has indicated publicly—because I will not talk about what was raised in the party room—is that we will not be proceeding with changes to Medicare that are opposed by the medical profession. What we have learned is that when a politician, with the best of intentions, tries to do things in this space to make things better but does not have the medical profession on board, that is not a sensible way forward. We have learned that lesson. That is why the minister, Ms Ley, will be consulting with the AMA and other stakeholders to come up with the best possible way forward.

Deborah O'Neill (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Isn't the Abbott government's refusal to dump the GP tax just another example of a prime minister who will not listen to his backbench, will not listen to the experts and will not listen to the Australian public?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

(—) (): I completely reject the premise of this question. This government is focused on putting Australia on a stronger foundation for the future. That includes making sure that Medicare remains strong for the medium to long term, that we protect Medicare and that the benefits of Medicare are available to patients across Australia for many, many years to come. We are facing some challenges as a nation. We are facing some challenges in the context of an ageing population, in the context of increasing costs of health care and in the context of improvements in medical technology and the like. We are working to come up with the best possible way forward that protects vulnerable patients but also seeks to ensure that funding for timely and affordable access to quality health care for patients remains affordable for taxpayers over the medium to long term. That is our responsibility as a government, and we will continue to work in the best interests of Australians. (Time expired)