With a federal election imminent, but not yet called, last night’s federal Budget contained no significant surprises for the health sector.
In his speech to Parliament, Treasurer the Hon Jim Chalmers announced that strengthening Medicare would be one of the Albanese Government’s main priorities.
The government has committed to spend an additional AU$8.4 billion over five years to improve the health system.
In his speech to Parliament, Treasurer Jim Chalmers said the federal government has pledged “the single largest investment in Medicare since its creation over 40 years ago”, with $7.9 billion over four years to expand bulk billing to deliver an additional 18 million bulk billed general practitioner visits each year.
Mr Chalmers also announced changes to the Pharmaceutical Benefits Scheme with the maximum co-payment for medicines to be lowered to $25.00 per script and remain frozen at $7.70 for pensioners.
The federal Government also announced a one-off $1.8 billion funding boost for public hospitals in 2025–2026, to cut waiting lists and reduce wait times in emergency rooms, and the establishment of 50 new Urgent Care Clinics to take the pressure of the public hospital system.
In its budget analysis, Optometry Australia (OA) said the detail “largely reflected previously announced health commitments”.
OA said other budget announcements of potential relevance to the optometry sector included:
- A Government move to ban noncompete clauses for low and middle-income workers,
- An extension of energy bill relief for six months to the end of 2025, for eligible small businesses, making available rebates up to $150,
- Investment to strengthen the Australian Competition and Consumer Commission’s enforcement of the Franchising Code, and
- Income tax reductions that would benefit an estimated 1.5 million sole traders.
OA said with the election looming, the Opposition’s Budget Reply speech later this week would hold “particular relevance”
MDFA Response
In its response, Macular Disease Foundation Australia (MDFA) said it was pleased with the increased investment to make primary health care more affordable and accessible.
“We fully support increasing bulk-billing incentives in general practice and the positive cost-saving outcomes.
“We recently welcomed the federal Government’s decision to defer the private health insurance reclassification of [IVI] from 1 July 2025 to 1 July 2026 and undertake further consultation.
“This must be an opportunity to address the overall affordability of sight saving injections, particularly for financially vulnerable Australians in need of this treatment,” an MDFA statement read.
“As people with neovascular age-related macular degeneration require frequent and ongoing eye injections, MDFA will continue to make recommendations to the government about ways to increase access to affordable eye injection treatment, including incentivising ophthalmologists to bulk bill Australian pension card holders who require sight-saving treatment.”
Diabetes Australia
While joining the chorus welcoming measures to reduce the cost of medicines and increase bulk billing, Diabetes Australia said, “there is simply not enough being done to curb the alarming growth in numbers of people living with diabetes and the management of the related complications”.
“Of great concern, is the fact that the diabetes community has been waiting since last year for the federal Government’s response to the Parliamentary Inquiry into Diabetes. This budget offered no indication about which of the 23 vital recommendations it might support and fund,” Diabetes Australia Group CEO Justine Cain said.
“In addition, hundreds of thousands of Australians in need of diabetes technology subsidies have been waiting to hear whether our call for expanded subsidies for insulin pumps and continuous glucose monitoring devices have been heard. The budget remained silent on this critical issue.
Ms Cain said the budget’s cost of living relief measures would save someone on an average income between $200 to $500 per year, but the cost of living with diabetes is at least $4,000 per year and “often significantly more”.
OA said with the election looming, the Opposition’s Budget Reply speech later this week would hold “particular relevance”.
“As we move closer to the official pre-election campaign period, and expect more policy commitments from all major parties, we encourage all members to get behind our Federal election campaign to re-instate two yearly rebates for under 65 year olds for initial comprehensive exams.”
