The 2014-15 Federal Budget, announced by the Abbott Government in May 2014, included a measure to reduce the Medicare Benefits Schedule (MBS) rebate for optometry services from 85% to 80% of the schedule fee, effective from 1 January 2015 [1].
Additionally, the 2014 budget changed the frequency of subsidised comprehensive eye examinations for people under 65 from once every two years to once every three years [3].
The rebate reduction was part of a broader freeze policy initiated by the previous Labor government.** In May 2013, the Gillard Labor Government suspended Medicare rebate indexation until 1 July 2014 to align indexation with the 2014-15 financial year [4].
The rebate reduction was accompanied by removal of the charging cap.** While the rebate percentage decreased from 85% to 80%, the government simultaneously removed the cap on what optometrists could charge patients [2].
Budget deficit reduction context.** The 2014 budget was the Coalition's first budget after winning government, with a stated focus on addressing what they termed a "budget emergency" and reducing the deficit [5].
The original source - Optometrists Association Australia (OAA), now known as Optometry Australia - is a **professional peak body representing optometrists** [6].
It is not a partisan political organization but rather an industry association advocating for its members' interests.
**Assessment:** The OAA is a credible source for information about how budget changes affect optometrists, though it naturally represents the professional interests of its members.
**Did Labor do something similar?**
Search conducted: "Gillard Labor government Medicare rebate freeze optometry 2013"
**Finding: Yes - Labor initiated the rebate indexation freeze.**
The Gillard Labor Government in May 2013 suspended Medicare rebate indexation for optometry services until 1 July 2014 [4].
* * * *
This freeze began before the Coalition took office and was part of Labor's own budget management measures.
Furthermore, both major parties have historically used Medicare rebate freezes as a budget management tool:
- Labor's 2013 freeze stopped indexation from 2013 to mid-2014
- The Coalition's 2014 budget extended this and added the reduction from 85% to 80% [1][4]
This demonstrates that using Medicare rebate policy as a fiscal tool is **bipartisan practice**, not unique to the Coalition.
**Criticisms of the Coalition's policy:**
Optometry Australia and other health advocates strongly opposed the changes, arguing that reducing the rebate percentage and extending the freeze would:
- Make eye care less accessible for low-income Australians [7]
- Reduce the sustainability of optometry practices [1]
- Potentially lead to worse health outcomes given that 80% of vision impairment is preventable [7]
Over 400 optometrists reportedly sent more than 5,500 emails to federal representatives urging reversal of the decision [3].
**Government rationale and policy context:**
The Coalition Government argued that:
- The budget faced significant structural deficits requiring corrective action [5]
- The removal of the charging cap gave optometrists flexibility to set appropriate fees [2]
- The MBS review process was underway to modernise Medicare (the MBS Review Taskforce was later established and continues to make recommendations) [8]
The 2014 budget was the new government's first budget, inheriting a fiscal situation that both parties agreed required addressing - though they differed on methods.
**Comparative context:**
Both Labor and Coalition governments have used Medicare rebate policy as a budget management tool.
The changes occurred in the context of broader budget deficit reduction efforts
This is not unique Coalition policy but rather a continuation and extension of bipartisan fiscal practices, with both major parties having used Medicare rebate constraints to manage budget pressures.
The changes occurred in the context of broader budget deficit reduction efforts
This is not unique Coalition policy but rather a continuation and extension of bipartisan fiscal practices, with both major parties having used Medicare rebate constraints to manage budget pressures.