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Families face double tax slug to pay for Labor's bulk billing plan

Families are faced with a double tax slug under proposals being considered by the Federal Labor Party, the Minister for Health and Ageing, Senator Kay Patterson, said today.

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27 February 2003

Families face double tax slug to pay for Labor's bulk billing plan

Families are faced with a double tax slug under proposals being considered by the Federal Labor Party, the Minister for Health and Ageing, Senator Kay Patterson, said today.

Opposition health spokesman, Stephen Smith, today clearly put raising the Medicare levy on the Labor Party's agenda.

Senator Patterson said: "Labor has already refused repeatedly to rule out scrapping the Government's 30% Private Health Insurance Rebate, which gives families, on average, $750 a year. Abolishing the rebate will be a big hit to the family budget in being able to afford access to private health insurance.

"And now Mr Smith has let the cat out of the bag. Not only are families going to be slugged with a tax hike on private health insurance, but he has made clear he now wants to increase the Medicare levy."

Senator Patterson said each 0.5% rise in the Medicare levy would cost families with a household income of $70,000 an extra $350 a year.

Families face a double tax slug of $1000 or more a year under Labor's plan, she said.

"Mr Smith has been making much of late about bulk billing and affordable access to GP services. A double tax slug on families through scrapping the 30% Private Health Insurance Rebate and increasing the Medicare levy is a self-defeating and futile way of making these services more affordable and accessible to families," Senator Patterson said.

Mr Smith clearly stated that he would like to increase the Medicare rebate "across the board in one go". Figures show that increasing the rebate to the level advocated by the Australian Medical Association would cost $2.7 billion a year.

"The only way he can pay for this is to introduce a double tax increase, which will not help families in having more affordable access to GP services," she said.

Mr Smith's claims that the Government had neglected the Medicare rebate are not true:

  • In the last six years of the previous Labor government, the Medicare rebate for a standard consultation increased by only $1.70 or less than 9 per cent. The Howard Government has increased the rebate by $4.20 or 20 per cent.
  • Under Labor, the Medicare rebate for longer level D consultations increased by only five per cent to $65.20 in its last six years. In the six years of this Government, the rebate for longer consultations has increased by 23 per cent to $80.40.

Further his claims about out-of-pocket expenses for visits to GP should be looked at more closely:
  • Under Labor, out-of-pocket expenses rose on average by 10 per cent a year. Under this Government, out-of-pocket expenses have risen by about 6 per cent a year.

Media inquiries, contact Randal Markey, Media Adviser, Senator Patterson's office, 02 6277 7220.