The proposal would have required previously bulk-billed patients to pay $7 towards GP consultations, pathology, and imaging services from July 1, 2015 [1].
The government's stated rationale was twofold: (1) to provide a "modest price signal" to reduce what they called "six-minute medicine" and unnecessary doctor visits, and (2) to fund the Medical Research Future Fund [2].
Under the original proposal, $5 of each $7 fee would go to the Medical Research Future Fund, while $2 would remain with the doctor as an increased rebate [2].
The Coalition simultaneously argued that the fee would act as a deterrent to reduce Medicare costs (by discouraging unnecessary visits) while also claiming it was modest enough not to deter vulnerable people from seeking care [3].
The government explicitly stated the fee was intended to be a "price signal" to make the system more efficient [1], but also maintained it would not prevent people from accessing necessary care.
Health Minister Sussan Ley announced the government would not pursue it at all, with Prime Minister Abbott declaring it "dead, buried and cremated" [4].
The claim omits several important pieces of context:
**Exemptions were proposed.** The original policy included exemptions for children under 16 and concession card holders (low-income earners and pensioners) after their first ten visits per year [2].
A modified version announced in December 2014 would have made the co-payment "optional" for doctors, reducing the rebate by $5 instead [5].
**The Medical Research Future Fund connection.** The government explicitly linked the co-payment to establishing what would become a $20 billion Medical Research Future Fund [2].
While this doesn't resolve the logical contradiction in the messaging, it explains the policy's structure—$5 of every $7 was earmarked for medical research rather than general budget repair [2].
**No evidence of modeling.** No government modeling was ever produced to justify the claim that a co-payment would make the system more efficient rather than just add barriers to care [2].
The policy appeared to be based on ideology rather than evidence.
**The policy was never implemented.** Despite the claim's present-tense framing, the co-payment was abandoned before taking effect.
The original sources include:
- **News.com.au**: Mainstream Australian news outlet (News Corp Australia)
- **Sydney Morning Herald**: Major Australian newspaper with generally balanced political coverage
- **The Guardian Australia**: International outlet with center-left editorial stance
These sources are generally credible mainstream media outlets.
The News.com.au article title ("Prime Minister and Treasurer don't understand their own policy") suggests critical editorial framing, which is consistent with News Corp's generally critical stance toward the Abbott government during this period.
The Labor government under Prime Minister Bob Hawke proposed a $3.50 Medicare co-payment in the August 1991 budget [6].
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This was half the amount of the Coalition's 2014 proposal, but the fundamental policy mechanism was identical—a patient co-payment for bulk-billed GP visits.
The Hawke/Howe Labor government introduced the co-payment without consultation, facing immediate backlash from the public, the Australian Medical Association (AMA), and factions within the ALP itself [6].
The policy was suspended, modified to a reduced $2.50 charge as a face-saver, and ultimately abolished by March 1992 after Paul Keating ousted Hawke as leader [6].
**Comparison:** Both parties have attempted GP co-payments while in government.
The Labor proposal ($3.50, later $2.50) was smaller than the Coalition's ($7), but both faced similar opposition from medical professionals, welfare groups, and the public.
The key difference is that Labor's attempt was in 1991, while the Coalition's was in 2014—over two decades later, with significantly higher healthcare costs and greater public expectation of universal access.
The claim correctly identifies a logical contradiction in the government's messaging: a fee cannot simultaneously be large enough to act as a deterrent (changing behavior to save money) and small enough not to deter anyone (particularly vulnerable people who need care) [3].
However, the claim presents only the negative framing without acknowledging:
1. **The policy rationale:** The government argued that a "price signal" was necessary to address what they called "six-minute medicine" and to make Medicare sustainable [1].
While experts disputed this rationale [2], it was the stated justification.
2. **The research funding connection:** The $7 fee was partially designed to fund the Medical Research Future Fund [2], not purely as a budget cut.
3. **Precedent exists across parties:** As noted above, Labor had attempted a similar policy in 1991 [6].
GP co-payments are not unique to Coalition ideology—they have been proposed by both major parties when facing budget pressures.
4. **The policy was abandoned:** The government ultimately listened to overwhelming opposition from doctors, patients, and the Senate, and scrapped the proposal entirely [4].
**Key context:** The logical contradiction identified in the claim is valid and was widely recognized.
The Coalition government did propose a $7 GP co-payment in the 2014 budget [1], and government ministers did simultaneously argue that the fee would act as a deterrent to reduce unnecessary visits while also claiming it was modest enough not to deter vulnerable people from seeking care [3].
The policy was never implemented, was modified multiple times in attempts to make it politically viable, and was ultimately abandoned in March 2015 [4].
The Coalition government did propose a $7 GP co-payment in the 2014 budget [1], and government ministers did simultaneously argue that the fee would act as a deterrent to reduce unnecessary visits while also claiming it was modest enough not to deter vulnerable people from seeking care [3].
The policy was never implemented, was modified multiple times in attempts to make it politically viable, and was ultimately abandoned in March 2015 [4].