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Families face double tax slug under Labor

Families face tax rises of $1000 a year to pay for Labor's undeliverable and unaffordable Medicare proposal, the Minister for Health and Ageing, Senator Kay Patterson, said today.

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29 July 2003

Families face double tax slug under Labor

Families face tax rises of $1000 a year to pay for Labor's undeliverable and unaffordable Medicare proposal, the Minister for Health and Ageing, Senator Kay Patterson, said today.

Despite repeated opportunities to give a commitment to retain the 30 per cent Private Health Insurance Rebate, Opposition health spokeswoman, Julia Gillard, refused today to give any undertaking.

Ms Gillard said she would not make any "quick promise" on the Rebate and hid behind Labor's so-called "review", which has been underway for nearly two years.

Senator Patterson said: "Families, on average, receive $750 a year from the Government's 30 per cent Private Health Insurance. It gives nearly nine million Australians affordable access to private health care. It gives them choice and it takes pressure off the public health system.

"Labor has steadfastly refused to give a commitment, leaving people in the dark about its future. Abolishing the rebate would hit the family budget and many would be unable to maintain their private health insurance.

"One thing people can be sure of is: private health insurance will be 30 per cent cheaper under the Coalition than under Labor."

Senator Patterson said scrapping the 30 per cent Private Health Insurance Rebate would be a tax rise.

Ms Gillard today also flagged further spending on Medicare on top of its unaffordable $2 billion Medicare proposal.

Senator Patterson said Labor would be forced to consider increasing the Medicare levy to pay for its big spending promises.

Each 0.5 percentage point rise in the Medicare levy would cost families with a household income of $70,000 an extra $350 a year, she said.

Families face a double tax slug - the abolition of the Private Health Insurance Rebate and the increase in the Medicare levy - of $1000 or more a year under Labor's proposals.

Senator Patterson said the Coalition's $917 million A Fairer Medicare package was an affordable and responsible commitment to Medicare to ensure it is accessible and affordable for all Australians, no matter where they live.

It would increase doctors' numbers and direct more resources to areas where they are needed.

Senator Patterson said: "We have introduced 234 more medical places a year to meet the community's need for more doctors," she said. "We are also going to have an additional 150 training places each year for the GP training program. These training places will be targeted to areas of workforce shortage, particularly outer-metropolitan and rural areas."

Senator Patterson said that up to 800 general practices would get assistance to employ a nurse to work in their practice.

The program would ease pressure on GPs and improve access by patients to a range of medical services.

Senator Patterson said A Fairer Medicare would ensure that doctors were financially better off to bulk bill patients with a Commonwealth concession card.

Up to seven million Commonwealth card holders would be able to see a GP at no cost if their GP participates in the new program, which delivers incentives ranging from an average of $3500 in urban areas to an average of $22,050 a year for practices in rural and remote areas.

For more information contact Sarah Higginbottom, Assistant Media Adviser, 0411 405 341