GP co-payment scrapped: Labor accused of ‘economic vandalism’

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Prime Minister Tony Abbott has accused the Opposition of sabotaging sensible reform amid reports the Government has abandoned its planned GP co-payment.

The $7 co-payment was one of the Coalition’s key budget measures, but the Government has walked away from its proposal, knowing it did not have enough support in the Senate.

It is one of several measures swept up in what Mr Abbott is describing as a “barnacle-clearing” exercise to remove policies slowing the Government’s momentum through its second year in office.

Mr Abbott would not be drawn on why the Government had walked away from the policy, but did accuse the Opposition of sabotaging sensible economic reform.

“This is a Labor Party which has entirely given up on the long-term national interest,” he said.

“At the expense of our country’s long-term national interest, it’s economic vandalism.”

But the scrapping of the co-payment was welcomed by Associate Professor Brian Owler from the Australian Medical Association.

“The AMA has been saying from day one of the budget that this is bad health policy,” he said.

“It would be bad, particularly for vulnerable patients.”

Professor Owler warned the Government against introducing any other measures to raise money, such as increasing the cost of medicines.

It is also not clear what impact the decision will have on the Government’s proposed Medical Research Future Fund.

‘Barnacle’ clearing likely to extend to PPL

In an address to the National Press Club yesterday, Labor leader Bill Shorten said Australians knew the budget was unfair.

“Every time they scrape off a barnacle, they just reveal another hole in the hull,” he said.

“A new set of talking points won’t fix this budget – it’s like raising the Titanic or re-marketing the Hindenburg, and that’s really hard.”

The Coalition was also expected to make further changes to its $5.5 billion paid parental leave scheme, a signature policy for Mr Abbott.

The policy would pay new mothers their full salary for six months.

Mr Abbott had already watered down the scheme, lowering the maximum possible payment from $75,000 to $50,000.