Australian Government, 2007–08 Budget

Health and Ageing

Aged care — demonstration sites for day respite in residential aged care facilities

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 7.9 11.0 11.0 11.2

The Government will provide $41.2 million over four years to expand services provided under the National Respite for Carers Programme to enable 20 services to be funded as demonstration sites for respite in existing residential aged care facilities.

This measure will encourage innovative and responsive approaches to day respite by using existing infrastructure to assist carers of older people with high care needs. The demonstration sites will be located in both metropolitan and rural areas, within each state and territory, and will provide day respite to address the needs of the surrounding population of carers, allowing them time away from their caring role.

Aged care — enhancing access to aged care services for culturally and linguistically diverse communities

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 2.9 3.0 3.0 3.1

The Government will provide $13.2 million over five years (including $1.3 million in 2006-07) to expand the Community Partners Programme. This expansion will fund an additional 35 projects to assist older people from culturally and linguistically diverse communities to access appropriate aged care services.

This measure builds on the 2004-05 Budget measure Investing in Australia’s Aged Care – strengthening culturally appropriate aged care for established culturally and linguistically diverse communities.

Aged care — equity of access for nursing home residents

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing - - - -
Department of Veterans’ Affairs - - - -
Total - - - -

The Government will provide $9.7 million over four years to ensure that service providers are not financially disadvantaged where nursing home residents who were living in a home prior to 1 October 1997 move to another facility. These residents, who were living in a nursing home prior to the Aged Care Act 1997 coming into effect, are not required to pay the accommodation charge. This measure ensures that providers have no financial reason to favour residents who are subject to the charge.

This measure involves funding of $3.2 million in 2007-08, $2.6 million in 2008-09, $2.1 million in 2009-10 and $1.8 million in 2010-11. Provision for this funding has already been included in the forward estimates.

Aged care — improved health services for residents of aged care homes

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 20.1 21.4 21.9 22.6
Department of Veterans’ Affairs 1.4 1.7 1.9 2.0
Total 21.5 23.1 23.7 24.6

The Government will provide $92.9 million over four years to expand the Aged Care General Practitioners (GP) Panels Initiative to include allied health workers and increase the call-out loading fee for GPs who visit aged care homes. The call-out loading fee will be increased by $18.00 and is aimed at encouraging additional GPs to provide services to residents in aged care homes.

The expansion will help address gaps in care provided to residents of aged care homes, especially in areas such as physiotherapy, occupational therapy and oral health. Funding will be provided to the Divisions of General Practice to facilitate adding allied health workers to existing Aged Care General Practitioners Panels.

Aged care — Securing the future of aged care for Australians — additional support for community-based respite care

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 2.6 5.2 7.9 10.7
Related capital ($m)
Department of Health and Ageing .. .. .. ..

The Government will provide additional funding of $26.5 million over five years (including $83,000 in 2006-07) to the National Respite for Carers programme. The funding will provide an additional 100,000 days of respite care to support family members who provide care at home for people who are unable to care for themselves because of frailty, chronic illness or disability.

This measure includes $0.1 million over five years from 2006-07 in capital funding for related building fit-out costs for the Department of Health and Ageing.

This measure forms part of the Government’s Securing the future of aged care for Australians package. Further information can be found in the press release of 11 February 2007 issued by the Minister for Ageing.

Aged care — Securing the future of aged care for Australians — additional support for services for people in remote and very remote areas and with special needs

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 8.6 8.5 9.9 13.3
Related capital ($m)
Department of Health and Ageing 0.1 .. .. ..

The Government will provide $42.6 million over five years (including $2.2 million in 2006-07) to make aged care more available to people with special needs, with a focus on Indigenous communities, homeless people and people living in remote and very remote Australia. This funding will provide support to aged care services that care for people in these circumstances. It will also provide for capital grants and development and implementation of culturally appropriate quality of care models.

This measure includes $0.4 million in capital funding over five years (including $0.3 million in 2006-07) for related building fit-out costs for the Department of Health and Ageing.

This measure forms part of the Government’s Securing the future of aged care for Australians package. Further information can be found in the press release of 11 February 2007 issued by the Minister for Ageing.

Aged care — Securing the future of aged care for Australians — assistive technology in community care

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 2.5 6.0 6.6 6.3
Related capital ($m)
Department of Health and Ageing 0.1 -0.1 .. ..

The Government will provide $21.4 million over four years to increase the availability and use of assistive technology among community care providers. This technology includes home safety devices, medication dispensers and communication technology to reduce isolation. This will assist frail older people to maintain their independence and remain safely in their homes longer.

This measure includes capital funding of $68,000 over four years for related building fit-out costs for the Department of Health and Ageing.

This measure forms part of the Government’s Securing the future of aged care for Australians package. Further information can be found in the press release of 11 February 2007 issued by the Minister for Ageing.

Aged care — Securing the future of aged care for Australians — better regulating aged care providers

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 1.5 1.4 1.5 1.5
Related capital ($m)
Department of Health and Ageing 0.4 .. - -

The Government will provide $6.7 million over five years (including $0.5 million in 2006-07) to introduce new regulations relating to financial accountability in the aged care sector. Legislation will be prepared requiring prior approval for sales of any aged care companies that receive government payments, and for background checks of key personnel who propose to own or operate them.

This measure includes $0.4 million in capital funding over three years (including $45,000 in 2006-07) for IT systems development and building fit-out costs for the Department of Health and Ageing.

This measure forms part of the Government’s Securing the future of aged care for Australians package. Further information can be found in the press release of 11 February 2007 issued by the Minister for Ageing.

Aged care — Securing the future of aged care for Australians — community care workforce development

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 7.8 7.9 8.1 8.2
Related capital ($m)
Department of Health and Ageing 0.1 .. .. -

The Government will provide $32.1 million over four years to ensure that the aged care sector has a skilled and sustainable workforce. This measure will provide training opportunities for up to 6,000 workers, including up to 2,000 culturally and linguistically diverse and Aboriginal and Torres Strait Islander workers. This measure will be delivered through the vocational education and training sector. It will also provide 410 additional post-graduate nursing scholarships for aged care nurses.

This measure includes capital funding of $64,000 over four years for related building fit-out costs for the Department of Health and Ageing.

This measure forms part of the Government’s Securing the future of aged care for Australians package. Further information can be found in the press release of 11 February 2007 issued by the Minister for Ageing.

Aged care — Securing the future of aged care for Australians — ensuring quality in community care

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 4.7 4.8 6.1 9.3
Related capital ($m)
Department of Health and Ageing 0.3 0.6 0.5 0.5

The Government will provide $26.8 million over four years to enhance the community care quality assurance framework, and provide for the development of best practice models and benchmarking in key areas of community care.

This measure includes $1.9 million in capital funding over four years for related IT system development and building fit-out costs for the Department of Health and Ageing.

This measure forms part of the Government’s Securing the future of aged care for Australians package. Further information can be found in the press release of 11 February 2007 issued by the Minister for Ageing.

Aged care — Securing the future of aged care for Australians — increased capital funding for residential care

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 104.9 98.5 139.8 149.0
Department of Veterans’ Affairs 18.6 17.6 25.1 26.7
Total 123.4 116.2 164.8 175.7
Related capital ($m)
Department of Health and Ageing 2.0 .. - -

The Government will provide $582.3 million over five years (including $0.2 million in 2006-07) to support increased investment in aged care homes so that high care places will be available when needed. Under the new arrangements, from 20 March 2008, providers will receive $26.88 per day (rising to $32.88 by September 2011) in accommodation payments for all new residents entering high care, either as a Government payment, a resident contribution or a mixture of the two, depending on the value of the new resident’s assets.

The Government will also provide a special capital subsidy to aged care providers of $3.50 per day for each high care resident during the transition period of 1 July 2007 to 19 March 2008, at a cost of $96.0 million. Providers will also receive a transitional subsidy for low care residents of $6.46 per day from 20 March 2008. This subsidy will be reduced progressively to zero over four years, at a cost of $92.2 million.

This measure includes $2.0 million in capital funding over three years (including $41,000 in 2006-07) for IT system redevelopment.

This measure forms part of the Government’s Securing the future of aged care for Australians package. Further information can be found in the press release of 11 February 2007 issued by the Minister for Ageing.

Aged care — Securing the future of aged care for Australians — increased support for Assistance for Care and Housing for the Aged

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 0.9 1.6 1.6 1.6
Related capital ($m)
Department of Health and Ageing .. .. - -

The Government will provide $5.7 million over four years to expand the Assistance for Care and Housing for the Aged programme, which helps link older people who are homeless or in insecure housing to more stable accommodation and care options. The Government will provide additional assistance to existing services and to allow services to be expanded into areas where they do not currently exist.

This measure includes capital funding of $19,000 in 2007-08 and 2008-09 for related building fit-out costs for the Department of Health and Ageing.

This measure forms part of the Government’s Securing the future of aged care for Australians package. Further information can be found in the press release of 11 February 2007 issued by the Minister for Ageing.

Aged care — Securing the future of aged care for Australians — introduction of the Aged Care Funding Instrument

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 15.8 103.7 114.9 100.1
Department of Veterans’ Affairs 2.5 18.3 20.4 17.9
Total 18.2 122.0 135.3 118.0

The Government will provide $393.5 million over four years to support the introduction of a new Aged Care Funding Instrument. The instrument will replace the existing Resident Classification Scale from 20 March 2008, and provide additional funding for care, targeted more closely to those who require higher levels of care. Existing residents will remain on their current scale subsidy until their care needs increase.

This funding will assist aged care homes to manage the transition to the instrument and ensure the level of funding for an existing resident will not decrease when they are reassessed under the new instrument.

This measure forms part of the Government’s Securing the future of aged care for Australians package. Further information can be found in the press release of 11 February 2007 issued by the Minister for Ageing.

Aged care — Securing the future of aged care for Australians — more community care packages

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 17.3 53.5 92.2 135.0
Related capital ($m)
Department of Health and Ageing 0.1 0.1 .. ..

The Government will provide $298.6 million over five years (including $0.3 million in 2006-07) to increase the number of community care packages from the current 20 places per 1,000 people aged 70 years and over, to 25 per 1,000 in 2010-11. This will result in an additional 5,600 Community Aged Care Packages and 1,600 Extended Aged Care at Home Packages provided over four years, increasing opportunities for older people to continue to reside in their own home for as long as possible.

This measure includes capital funding of $0.3 million over five years (including $48,000 in 2006-07) for related building fit-out costs for the Department of Health and Ageing.

This measure forms part of the Government’s Securing the future of aged care for Australians package. Further information can be found in the press release of 11 February 2007 issued by the Minister for Ageing.

Aged care — Securing the future of aged care for Australians — paying full subsidy to former State and Territory Government aged care places

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 4.8 5.0 5.5 6.3
Department of Veterans’ Affairs 0.9 0.9 1.0 1.1
Total 5.6 5.9 6.5 7.4

The Government will provide $25.5 million over five years (including $21,000 in 2006-07) to ensure that all non‑government aged care providers receive the same Australian Government subsidies for residential aged care places. Adjusted subsidies are currently paid to some aged care homes run by state and territory governments, including those that have since transferred to non-government organisations. This measure will increase the funding available for high level residential care and assist with the transfer of facilities to private providers.

This measure forms part of the Government’s Securing the future of aged care for Australians package. Further information can be found in the press release of 11 February 2007 issued by the Minister for Ageing.

Aged care — Securing the future of aged care for Australians — simplified income-tested care fees

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 8.2 22.3 22.6 22.4
Department of Veterans’ Affairs 1.5 3.9 4.0 3.9
Total 9.7 26.2 26.6 26.4
Related capital ($m)
Department of Health and Ageing 0.6 .. .. -
Department of Veterans’ Affairs 0.3 - - -
Total 0.9 0.0 0.0 -

The Government will provide $89.8 million over five years (including $0.1 million in 2006-07) in additional subsidies to improve the income-testing arrangements for residents of aged care homes.

This measure will simplify and improve the fairness of the residential care income test. The new income test will apply to all residents from 20 March 2008 and will treat all assessable income the same, irrespective of whether it is pension or private income.

This measure includes $0.8 million over four years in capital funding (including $15,000 in 2006-07) to upgrade IT systems for payments.

This measure forms part of the Government’s Securing the future of aged care for Australians package. Further information can be found in the press release of 11 February 2007 issued by the Minister for Ageing.

Aged care — services in the Indian Ocean Territories

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 0.3 0.3 0.3 0.3

The Government will enable residents of the Indian Ocean Territories to access aged care subsidies for Commonwealth-funded aged care services at an estimated cost of $1.2 million over four years. This will result in residents being able to access subsidies in the same way as those in mainland communities. Amendments will be made to the Aged Care Act 1997 for it to apply to the Territory of Christmas Island and the Territory of Cocos (Keeling) Islands.

Antivenom production in Australia — continued manufacturing

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 0.4 0.4 0.4 0.5

The Government will provide $1.7 million over four years to ensure the continued manufacture and supply of antivenom products in Australia. This funding forms part of a renewed contract between the Government and CSL Limited for the production of antivenom products for a further four years.

Australian Primary Care Collaboratives — continue and increase funding

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 0.2 4.2 4.1 4.2

The Government will provide $34.6 million over four years to continue and expand the work of the Australian Primary Care Collaboratives Programme. The funding will further support general practices to manage the care of people with, or at risk of, chronic disease. The number of practices participating in the programme will increase to 800 over the next four years (up from 500).

The programme supports doctors to make practice-level changes and close the gap between current and best practice. The types of practice-level changes include setting up register and recall systems, better use of practice teams, maximising self management by people with chronic conditions and improving coordination of care between health care services.

This measure provides an additional $12.7 million over four years. Funding of $22.0 million over four years has already been included in the forward estimates, involving $5.4 million in 2007-08, $5.4 million in 2008-09, $5.5 million in 2009-10 and $5.6 million in 2010-11.

Australian Radiation Protection and Nuclear Safety Agency — continuation of funding

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Australian Radiation Protection and Nuclear Safety Agency - - - -

The Government will provide $1.7 million over four years from 2007-08 to continue funding provided in the 2003-04 Budget for the Australian Radiation Protection and Nuclear Safety Agency. This will enable it to undertake scientific research and provide services in relation to radiation protection, nuclear safety and medical exposure to radiation. The agency has responsibility for protecting the health and safety of people and the environment from the harmful effects of ionizing and non-ionizing radiation.

This measure involves funding of $0.4 million in 2007-08, $0.4 million in 2008-09, $0.4 million in 2009-10 and $0.4 million in 2010-11. Provision for this funding has already been included in the forward estimates.

Breast cancer — continuation of funding for National Breast Cancer Centre

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing - - - -

The Government will provide $8.8 million over four years to continue funding for the National Breast Cancer Centre to maintain its leading role in improving outcomes for women with, or at risk of, breast cancer. The National Breast Cancer Centre is the primary organisation delivering the Australian Government’s breast and ovarian cancer control programmes.

This measure involves funding of $2.1 million in 2007-08, $2.2 million in 2008-09, $2.2 million in 2009-10 and $2.3 million in 2010-11. Provision for this funding has already been included in the forward estimates.

Breast cancer — support for women in rural and remote areas — continuation of funding

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing - - - -

The Government will provide $4.4 million over four years to continue funding for health care workers trained to provide support and information for women diagnosed with breast cancer. These health care workers will assist women in rural and remote areas where geographic isolation and limited contact with specialists may impede access to the full range of treatment options and support services.

This measure involves funding of $1.1 million per annum over four years from 2007-08. Provision for this funding has already been included in the forward estimates.

Breast cancer treatment — continuation of funding for the Herceptin® programme

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing - - - -
Medicare Australia - - - -
Total - - - -

The Government will provide $83.5 million over two years to continue funding for the Herceptin® programme for the treatment of late-stage metastatic breast cancer. Funding beyond 2008-09 will be considered following a review of the programme and its consideration by the Pharmaceutical Benefits Advisory Committee.

This measure involves funding of $42.2 million in 2007-08 and $41.3 million in 2008-09. Provision for this funding has already been included in the forward estimates.

This measure complements the Pharmaceutical Benefits Scheme — listing of Herceptin® (trastuzumab) measure reported in the Mid-Year Economic and Fiscal Outlook 2006-07.

Breastfeeding — education and support

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 3.1 3.5 1.0 1.0

The Government will provide $8.7 million over four years to raise awareness amongst parents and health professionals of the benefits of breastfeeding. Advice and support will be provided to mothers who may wish to breastfeed. This funding will also go towards research to understand the factors that influence the decision by mothers to breastfeed, which will inform the development of information and support to mothers, their partners, families and professionals.

Chronic and complex conditions — supporting patient care

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 43.4 68.3 73.1 78.2
Department of Veterans’ Affairs 4.5 7.8 7.8 8.2
Total 47.9 76.1 80.9 86.4

The Government will provide $291.3 million over four years to introduce two new Medicare items for consultant physicians who assess and manage patients with chronic and complex conditions. The scheduled fees for the new items will be $238.30 for an initial consultation of at least 45 minutes duration and $119.30 for up to two subsequent consultations. These fees recognise the additional time and complexity involved in treating these patients. The items will be available from 1 November 2007.

Consultant physicians in sub-specialties, such as renal medicine, are integral to the medical management and coordination of care of patients with complex conditions and multiple co-morbidities. This measure will enhance the medical management of patients with chronic and complex disease by supporting general practitioners and specialists in diagnosing or treating patients with difficult medical conditions. The treating practitioner can refer the patient to a consultant physician, who will provide an assessment and a comprehensive treatment plan.

COAG — reducing the risk of type 2 diabetes

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 1.9 22.4 36.0 42.4
Medicare Australia 0.1 0.1 0.2 0.3
Department of Veterans’ Affairs - .. 0.1 0.1
Total 1.9 22.5 36.3 42.8

The Government will provide up to $103.5 million over four years as its contribution to a cost-shared initiative with State and Territory governments to address the growth in type 2 diabetes. This measure will focus on people aged 40 to 49 by encouraging them to take a ‘tick test’ in their general practitioner (GP)’s surgery. Patients with a high risk score will be referred by the GP to an accredited subsidised lifestyle modification programme. The Government will provide a subsidy of $210, with consumers to pay a co-payment of $50.

Funding includes $1.0 million over two years to develop a national risk assessment tool (the ‘tick test’). This will also involve creating national standards for lifestyle interventions for people at increased risk of developing type 2 diabetes and a national accreditation process for providers of lifestyle interventions.

This measure forms part of an agreement made by the Council of Australian Governments (COAG) on 13 April 2007. Further information can be found in the Communiqué available from www.coag.gov.au.

Combating illicit drugs — more effective treatment for methamphetamine abuse

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 11.5 11.4 - -

The Government will provide $22.9 million over two years to enhance the capacity of non-government organisation treatment services to respond to the challenges of treating users dependent on methamphetamines and reduce the harm they cause to individuals, families and the community. This funding will allow service providers to invest in infrastructure and resources to equip them to provide innovative and effective treatment for methamphetamine abuse.

This measure forms part of the Government’s commitment to further combat illicit drugs, including methamphetamines, and complements the Government’s broader National Illicit Drug Strategy. See also the related expense measures titled Combating illicit drugs in the Attorney-General’s portfolio.

Further information can be found in the press release of 22 April 2007 issued by the Prime Minister.

Combating illicit drugs — strengthening drug prevention education

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 2.2 - - -
Department of Education, Science and Training - - - -
Total 2.2 - - -

The Government will provide an additional $9.2 million over two years (including $7.1 million in 2006-07) to enhance the National Drugs Campaign by providing increased education and communication activities around the dangers of methamphetamines, in particular the more potent form known as ‘ice’. These activities involve national distribution of the revised ‘Talking with your kids about drugs’ booklet to ensure that parents have up-to-date information about illicit drugs and available support, and a promotional campaign designed to complement distribution of the booklet.

The Government will also spend $1.6 million in 2007-08 to develop both print and interactive multi-media resources to support school teachers in undertaking classroom-based drug prevention activities concerning psycho-stimulants such as ‘ecstasy’ and ‘ice’. The cost of developing these teaching materials will be met from within the existing resourcing of the Department of Education, Science and Training.

This measure forms part of the Government’s commitment to further combat illicit drugs, including methamphetamines, and complements the Government’s broader National Illicit Drug Strategy. See also the related expense measures titled Combating illicit drugs in the Attorney-General’s portfolio.

Further information can be found in the press release of 22 April 2007 issued by the Prime Minister.

Combating illicit drugs — strengthening the Non-Government Organisation Treatment Grants Programme

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 13.7 21.6 21.9 22.3

The Government will provide $79.5 million over four years to expand the Non-Government Organisation Treatment Grants Programme. This measure will significantly increase the number of treatment places and increase the capacity of non-government organisations’ treatment services to provide assistance to families and youth. These services include therapies and detoxification management for those people fighting drug addiction along with specific youth-focused treatment services.

This measure forms part of the Government’s commitment to further combat illicit drugs, including methamphetamines, and complements the Government’s broader National Illicit Drug Strategy. See also the related expense measures titled Combating illicit drugs in the Attorney-General’s portfolio.

Further information can be found in the press release of 22 April 2007 issued by the Prime Minister.

Community Pharmacy Agreement — implementation of programmes

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 7.5 4.4 4.1 4.8
Medicare Australia 1.6 0.1 0.1 0.1
Total 9.1 4.5 4.1 4.9
Related capital ($m)
Medicare Australia 1.5 - - -
Department of Health and Ageing 0.4 - - -
Total 1.8 - - -

The Government will provide $24.4 million over four years (including $1.8 million in capital funding in 2007-08) to fund the implementation of new programmes and services under the Fourth Community Pharmacy Agreement.

This funding will enable the Government to provide systems and support for pharmacies to deliver programmes and services aimed at:

  • assisting in the management of, and education about, health conditions such as asthma, diabetes and hepatitis C;
  • improving the quality use of Pharmaceutical Benefits Scheme medicines by Indigenous Australians;
  • improving medication compliance and reducing the risk of medication-related adverse events through the provision of dose-administration aids and medication profiles; and
  • supporting and educating pharmacies about the changes to their business practices and systems that will enable them to undertake these services.

Continence Aids Assistance Scheme — expansion

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 5.2 8.5 12.0 15.8

The Government will provide funding of $98.5 million over five years (including $65,000 in 2006-07) to expand the Continence Aids Assistance Scheme to assist more people with the cost of purchasing continence aids.

The Government will extend the age eligibility for the scheme to include children aged 5 to 15 years, and adults over 64 years with permanent incontinence due to neurological conditions. This measure will also expand the eligibility criteria to include all causes of permanent incontinence, not just neurological causes, for those people who hold a pensioner concession card and their dependants.

These changes to the scheme’s eligibility will commence from 1 July 2007.

Provision for the 2006-07 funding and for $7.9 million in 2007-08, $12.0 million in 2008-09, $16.3 million in 2009-10 and $20.9 million in 2010-11 has already been included in the forward estimates.

Further information can be found in the press release of 4 February 2007 issued by the Minister for Ageing.

Mosquito control operations in Northern Australia

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing - - - -

The Government will provide $2.7 million over three years (including $1.0 million in 2006-07) to help the Queensland and Northern Territory governments fund mosquito eradication operations on islands in the Torres Strait and on Groote Eylandt, following recent incursions of species of mosquito capable of spreading dengue fever in these areas.

The cost of this measure will be met from within the existing resourcing of the Department of Health and Ageing.

Dental school — Charles Sturt University

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 54.2 2.9 1.3 0.1
Department of Education, Science and Training - 1.1 2.2 3.3
Total 54.2 4.0 3.5 3.4
Related revenue ($m)
Department of Education, Science and Training - - .. ..

The Government will provide $65.1 million over four years for the establishment of a new regional dental school at the Charles Sturt University, including the construction of residential accommodation for students.

The funding will provide for 60 additional dentistry places: 30 in a five-year dentistry course and 30 in a three‑year paradental course. Rural training encourages graduates to pursue careers in rural areas.

Amounts loaned under the Higher Education Loans Programme (HELP) for students taking up these places are treated as financial assets and therefore do not impact on the fiscal balance. Payments by students of the indexation component of their HELP loan is treated as interest revenue. These payments will impact on the fiscal balance from 2009-10. The additional public debt interest incurred by the Australian Government in financing the loans is separately accounted for in the budget papers.

Dental training — expanding rural placements

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 7.3 3.2 1.0 1.1

The Government will provide $12.5 million over four years to improve rural access to dental services by expanding dental training in regional settings. This measure will provide clinical placements in rural training settings for up to 30 metropolitan dentistry students annually.

In addition, three scholarships per year will be established under the Puggy Hunter Memorial Scholarship Scheme to encourage Indigenous Australians to train in dentistry or in the allied health professions such as oral hygiene.

Dental treatment — enhanced Medicare items for patients with chronic and complex conditions

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 36.8 93.9 104.1 140.8
Medicare Australia 0.6 0.4 0.4 0.5
Total 37.4 94.3 104.5 141.3
Related capital ($m)
Medicare Australia 0.1 - - -

The Government will provide $377.6 million over four years to improve access to dental items available on the Medicare Benefits Schedule (MBS) from 1 November 2007 for patients with chronic and complex conditions.

The expanded MBS items will provide for an initial dental assessment and subsequent dental treatments. Each patient will receive a $125 benefit for an initial dental assessment (up from $77.95) and benefits for subsequent dental treatments up to the value of $2,000 per year. The new items will be available to patients being treated under a general practitioner management plan and team care arrangements, or under a multidisciplinary care plan in an aged care facility. The items will be available where the person’s oral health is impacting on, or is likely to impact on, their chronic medical condition.

This measure includes $53,000 in capital funding in 2007-08 for Medicare Australia system enhancements.

Divisions of General Practice — continuation of funding

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing - - - -

The Government will provide $243.3 million over three years from 2008-09 to continue funding the Divisions of General Practice network. The objective of the network is to promote the health and wellbeing of Australians by working with general practitioners and other health service providers to improve the quality and accessibility of health care at the local level. The programme also provides an important avenue for the support and delivery of Government programmes.

This measure involves funding of $79.5 million in 2008-09, $81.1 million in 2009-10 and $82.7 million in 2010-11. Provision for this funding has already been included in the forward estimates.

Enhanced Divisional Quality Use of Medicines programme — discontinuation

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing -1.6 -2.4 -2.9 -3.5

The Government has discontinued the Enhanced Divisional Quality Use of Medicines (EDQUM) programme from 31 January 2007, resulting in savings to Government of $10.9 million over five years (including $0.5 million in 2006-07).

When announced in the 2003-04 Budget, this programme was expected to generate savings of $39.8 million over four years through a reduction in estimated expenditure on the Pharmaceutical Benefits Scheme (PBS). However, savings to the PBS are expected to continue to be achieved through other measures aimed at quality prescribing such as the activities of the National Prescribing Service.

The savings shown in the expense table above result from ceasing funding for the Divisions of General Practice to support EDQUM activities.

Food Standards Australia New Zealand — continue and increase funding

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Food Standards Australia New Zealand 3.0 3.0 3.0 3.1
Related capital ($m)
Food Standards Australia New Zealand 0.6 - - -

The Government will provide $12.7 million over four years to increase resourcing for Food Standards Australia New Zealand (FSANZ) to reduce the time taken to develop new food standards and address the demands and concerns of industry and consumers regarding food safety.

FSANZ develops food standards and joint codes of practice with industry, covering the content and labelling of food sold in Australia and New Zealand. FSANZ also performs functions such as national coordination of food surveillance and food recall systems, providing food handling advice to consumers and conducting research.

This measure also continues funding of $0.7 million per annum over four years from 2007-08 that has already been included in the forward estimates. This funding was previously provided for the development of primary production and processing standards and to meet additional resourcing requirements.

General practice vocational training — continuation of funding

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing - - - -

The Government will provide $126.2 million over two years from 2008-09 to continue funding general practice vocational training initiatives provided through the Rural Health Strategy and the Strengthening Medicare package.

These initiatives provide additional funding for the Australian General Practice Training Programme, a vocational training course for medical practitioners who wish to pursue a career in general practice. The additional funding has allowed the programme to increase the number of new general practitioner training places provided each year to 600. The continuation of the initiatives will allow all funding for the programme to be aligned, to enable long‑term planning.

This measure involves funding of $46.6 million in 2008-09 and $79.6 million in 2009-10. Provision for this funding has already been included in the forward estimates.

Gynaecological cancer centre — establishment

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing - - - -
Cancer Australia - - - -
Total - - - -

The Government will provide $1.0 million in 2006-07 for the establishment and initial operation of a Centre for Gynaecological Cancers. The Centre will operate under the auspices of Cancer Australia and will provide education and increase awareness of gynaecological cancers among medical and allied health professionals.

The cost of this measure will be met from within the existing resourcing of the Department of Health and Ageing.

Further information can be found in the announcement of 27 February 2007 issued by the Minister for Health and Ageing.

Health and medical research — streamlining human research ethics reviews

Expense ($m)
2007-08 2008-09 2009-10 2010-11
National Health and Medical Research Council 1.3 1.1 0.9 0.8
Related capital ($m)
National Health and Medical Research Council 0.5 0.4 0.4 0.4

The Government will provide $5.6 million over four years to eliminate the need for multiple ethics reviews of health and medical research conducted at multiple sites and replace current arrangements with a single streamlined national approach. This funding will enhance Australia’s research capacity by reducing delays in the approval of ethics reviews.

This measure includes $1.6 million in capital funding over four years to purchase a national IT system that will be used to track all research proposals from initial receipt to completion of the research project.

Healthy Active Australia — funding for a national nutrition and physical activity survey

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 2.6 2.9 2.8 2.3

The Government will provide $10.6 million over four years to fund an ongoing programme of national surveys on the food and nutrient intake, physical activity level and other indicators of wellbeing of a representative sample of Australians.

The results of the survey will inform the development of strategies that promote good nutrition and physical activity to help address the rising prevalence of overweight and obese Australians. The results will also contribute to improvements in the food regulatory environment by providing up-to-date nutritional profiles on various communities across Australia. The initial survey will update results from the last national nutritional survey in 1995 and national physical activity survey in 2000.

See also the related expense measures titled Healthy Active Australia in the Health and Ageing, Education, Science and Training, and Communications, Information Technology and the Arts portfolios.

Healthy Active Australia — grants for physical activity projects in the community

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 4.5 3.4 2.3 1.5

The Government will provide $11.7 million over four years for one-off grants to organisations to conduct local and national initiatives to encourage participation in physical activity.

This measure will help address the rising numbers of obese and overweight people in the community. It also builds on the Government’s contribution to the Council of Australian Governments (COAG) Australian Better Health Initiative, announced in the COAG communiqué of 10 February 2006.

See also the related expense measures titled Healthy Active Australia in the Health and Ageing, Education, Science and Training, and Communications, Information Technology and the Arts portfolios.

Hearing Services Programme — improving hearing outcomes

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 12.9 17.8 19.0 20.9
Medicare Australia 0.1 .. .. ..
Total 13.0 17.8 19.0 20.9

The Government will provide $70.7 million over four years to improve hearing outcomes and access to services under the Hearing Services Programme. This measure includes funding of $0.2 million over four years for Medicare Australia for IT system enhancements.

The measure will provide funding to Australian Hearing to meet the increased demand and cost of services provided under the Community Service Obligations (CSO) Programme. This programme provides CSO clients, who include children under 21 years of age, eligible adults with complex hearing needs and Indigenous Australians aged over 50, with access to hearing devices to meet their hearing needs.

The measure will also provide funding for new clients to access rehabilitation services to help them cope with their hearing loss and learn to use their devices more effectively.

Funding will be provided in 2007-08 and 2008-09 to upgrade the technology of FM systems, a supplementary device used by children with hearing aids to help them hear better in the classroom and thereby to improve their educational outcomes.

The measure also includes funding to improve the availability of more appropriate information for general practitioners when determining a patient’s suitability for hearing services. Funding will also be increased for hearing research and prevention activities to inform future programme activities.

Hepatitis C Education and Prevention Initiative — continuation of funding

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing - - - -

The Government will provide $17.0 million over four years to continue funding the Hepatitis C Education and Prevention Initiative. This Initiative funds education, prevention and health maintenance initiatives for those currently infected or at risk of becoming infected with Hepatitis C.

This measure involves funding of $4.1 million in 2007-08, $4.2 million in 2008-09, $4.3 million in 2009-10 and $4.4 million in 2010-11. Provision for this funding has already been included in the forward estimates.

Humanitarian settlement initiatives — Programme of Assistance for Survivors of Torture and Trauma — additional funding

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 3.0 3.0 3.1 3.1

The Government will provide an additional $12.2 million over four years to expand the Programme of Assistance for the Survivors of Torture and Trauma to increase the capacity of specialised treatment services in Australia to meet the needs of humanitarian entrants. This will further improve access to medium- to long-term specialist counselling for an additional 1,800 survivors of torture and trauma annually.

The programme provides counselling, referral, advocacy, education and training services in all Australian States and Territories. It also helps to improve clients’ access to health, mental health and related mainstream services after they have received the specialist assistance they need.

See also the related expense measures titled Humanitarian settlement initiatives in the Immigration and Citizenship; Education, Science and Training; and Families, Community Services and Indigenous Affairs portfolios.

Life Saving Drugs Programme — funding for Aldurazyme® (laronidase-rch)

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 3.0 4.2 4.5 4.8

The Government will add Aldurazyme® (laronidase-rch) to the Life Saving Drugs Programme for the treatment of Mucopolysaccharidosis Type 1 at an estimated cost of $16.4 million over four years.

Mucopolysaccharidosis Type 1 is an extremely rare, serious enzyme deficiency disorder that leads to widespread disruption of tissues and organs, causing significant morbidity and reduction in lifespan. Aldurazyme® will be made available to those deemed eligible under treatment guidelines currently being finalised. This addition to the programme is in response to a recommendation made by the Pharmaceutical Benefits Advisory Committee, which determined that Aldurazyme® was clinically effective but did not meet the necessary cost-effectiveness requirements to be listed on the Pharmaceutical Benefits Scheme.

Magnetic Resonance Imaging — improved access

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 3.2 4.2 5.4 5.0
Medicare Australia .. .. .. ..
Total 3.2 4.2 5.4 5.1

The Government will provide $17.9 million over four years to improve access to affordable Magnetic Resonance Imaging (MRI) services.

This measure will provide Medicare-eligible MRI units in an additional three locations where there is currently a shortage of MRI services but with sufficient population and infrastructure to support increased servicing. In addition, increased support will be provided until 2009-10 for the Medicare-eligible MRI service in Dubbo to ensure affordable MRI services in the region.

This measure will increase, to 115, the number of Medicare-eligible MRI units that the Government has committed to support.

Medical research facilities — grants for development and expansion

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing - - - -
Department of Education, Science and Training - - - -
Total - - - -

The Government will provide $485.8 million in 2006-07 to fund a variety of development and expansion projects by medical research facilities and the operations of the Australian Synchrotron. This measure will enhance the capacity and quality of Australia’s health and medical research efforts and assist Australian researchers to continue high quality world-class research. Funding for the Australian Synchrotron will be subject to matching funding from the Victorian Government. Funding comprises:

  • $30.0 million for the Prince of Wales Medical Research Institute, New South Wales;
  • $15.0 million for the Westmead Millennium Institute, New South Wales;
  • $10.0 million for the Sydney Cancer Centre, New South Wales;
  • $6.0 million for the Brain and Mind Institute, New South Wales;
  • $14.0 million for the Baker Heart Research Institute, Northern Territory;
  • $5.3 million for the Menzies School of Health Research, Northern Territory;
  • $100.0 million for the Princess Alexandra Hospital and University of Queensland, Queensland;
  • $55.0 million for the Queensland Institute of Medical Research, Queensland;
  • $10.0 million for the Flinders Centre for Innovation in Cancer, South Australia;
  • $50.0 million for the Murdoch Children’s Research Institute, Victoria;
  • $50.0 million for the Australian Synchrotron, Victoria;
  • $15.0 million for the Australian Regenerative Medicine Institute, Victoria;
  • $6.0 million for the Macfarlane Burnet Institute for Medical Research and Public Health, Victoria;
  • $100.0 million for the Western Australian Institutes for Health, Western Australia; and
  • $19.5 million for the Institute for Immunology and Infectious Diseases, Western Australia.

Medicare Benefit Schedule — better access to after hours GP services

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 0.1 16.1 24.9 26.0
Department of Veterans’ Affairs - 1.0 1.7 1.7
Medicare Australia - 0.1 0.1 0.1
Total 0.1 17.2 26.7 27.8

The Government will provide $71.8 million over four years to improve patient access to general practitioners (GPs) outside normal surgery hours.

This measure will introduce new Medicare Benefits Schedule items to extend the after-hours service for urgent out-of-surgery visits. Higher rebates will apply for services provided between 6pm and 8pm on weekdays and from 12 noon to 1pm on Saturdays. The scheduled rebates for the new Medicare Benefits Schedule items will be $83.50 and $67.00 respectively, and will be introduced on 1 November 2008. Currently, the standard level B Medicare rebate for an in-hours, out-of-surgery visit by a vocationally-recognised GP is $54.55. The measure will also rationalise and streamline existing Medicare Benefits Schedule after-hours items to reduce red tape for GPs.

Medicare Benefits Schedule — new and revised listings

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 16.1 19.9 23.8 28.2
Department of Veterans’ Affairs 0.5 0.5 0.5 0.5
Medicare Australia 0.1 0.2 0.2 0.2
Total 16.7 20.6 24.5 29.0

The Government will provide $94.1 million over five years (including $3.4 million in 2006-07) for new and revised listings on the Medicare Benefits Schedule and Veterans’ Benefits added since the Mid-Year Economic and Fiscal Outlook 2006-07.

The amendments to the Medicare Benefits Schedule include:

  • a new item for Intracytoplasmic Sperm Injection, an assisted reproduction technique relating to severe male infertility (listed on the Medicare Benefits Schedule only);
  • revised items for consultations provided after hours and out of surgery;
  • new items for group services provided by eligible diabetes educators, exercise physiologists and dieticians for people with Type 2 diabetes on referral from a general practitioner (listed on the Medicare Benefits Schedule only); and
  • a new item for annual health assessments for people with an intellectual disability (listed on the Medicare Benefits Schedule only).

Further information can be found in the summary of changes included in the 1 May 2007 supplement, and in future supplements to the Medicare Benefits Schedule issued by the Department of Health and Ageing.

Mental Health — increased mental health services for drought-affected communities

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing - - - -

The Government will provide $20.6 million over four years to increase mental health services in drought-affected communities, building on the COAG Mental Health — mental health services in rural and remote areas measure announced in the 2006-07 Budget. The measure will provide for more allied and mental health nursing professionals such as social workers, psychologists, occupational therapists, and Indigenous health workers in drought-affected communities.

In addition, $10.1 million will be provided over the two years from 2007-08 to individual Divisions of General Practice to support mental health professionals and community leaders respond to the psychological impact of drought. This will involve training for workforce and community leaders to recognise and respond to the early warnings of emotional distress. It will also support health practitioners and other drought relief workers and raise awareness of self-help and other services in relevant communities.

The cost of this measure will be met from within the existing resourcing of the Department of Health and Ageing.

Multidisciplinary case conferencing — continuation of funding

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing - - - -
Medicare Australia - - - -
Department of Veterans’ Affairs - - - -
Total - - - -

The Government will provide $6.4 million over four years through the Medicare Benefits Schedule and Veterans’ Benefits, for general practitioners (GPs) to work with other health professionals to undertake multi-disciplinary case conferencing. Case conferencing assists GPs to determine the best treatment for people with chronic conditions and complex care needs. Involving GPs and other care providers helps ensure the most appropriate services are provided at the right time.

This measure involves funding of $1.4 million in 2007-08, $1.5 million in 2008-09, $1.7 million in 2009-10 and $1.8 million in 2010-11. Provision for this funding has already been included in the forward estimates.

National Immunisation Programme — implementation of the National Human Papillomavirus Vaccination Programme

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 50.3 18.4 4.2 3.4
Medicare Australia 1.2 0.6 - -
Total 51.4 19.0 4.2 3.4
Related capital ($m)
Department of Health and Ageing - - - -

The Government will provide $103.5 million over five years (including $25.4 million in 2006-07) to support implementation of the National Human Papillomavirus (HPV) Vaccination Programme. This includes capital funding of $0.2 million in 2006-07 for IT systems for the Department of Health and Ageing.

This measure provides funding of $48.6 million over five years to provide assistance to the States and Territories to deliver the vaccine to 12-13 year-old girls and a catch-up programme for 13-18 year-old girls, in school settings, commencing in the 2007 school year.

Further, the measure will also meet the Medicare Benefits Schedule costs for a catch-up vaccination programme for 18-26 year-old women to be delivered by general practitioners over two years commencing in July 2007. Funding is also provided over two years for advertising and marketing activities to promote further public awareness of the benefits of the programme. This funding is additional to the $436.8 million over four years for the purchase of the HPV vaccine, Gardasil®, outlined in the National Immunisation Programme – human papilloma virus vaccine measure in the Mid-Year Economic and Fiscal Outlook 2006-07.

Further information can be found in the press release of 7 March 2007 issued by the Minister for Health and Ageing.

National Immunisation Programme — Q fever vaccine

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 7.5 1.7 4.0 2.8

The Government will provide $16.6 million over five years (including $0.5 million in 2006-07) to ensure the availability of an ongoing supply of Q fever vaccine and screening tests. Q fever is a bacterial condition that can affect people such as abattoir and other workers who have close contact with livestock and their by-products. These funds will also provide for the building of a specialised manufacturing facility by CSL Limited to enable the continued production of the vaccine and screening tests.

Further information can be found in the joint press release of 30 November 2006 issued by the Minister for Health and Ageing and the Minister for Agriculture, Fisheries and Forestry.

National Immunisation Programme — rotavirus vaccine

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 23.3 32.4 32.2 32.3
Medicare Australia 1.0 1.0 1.0 1.0
Total 24.3 33.4 33.1 33.3
Related capital ($m)
Medicare Australia - - - -

The Government will provide $124.4 million over five years (including $0.4 million in 2006-07) to fund new vaccines for the prevention of rotavirus gastroenteritis under the National Immunisation Programme. This measure includes $0.1 million in capital funding in 2006-07 for system re-development for Medicare Australia.

All Australian babies born from 1 May 2007 will be eligible for a course of vaccine, free of charge, commencing from 1 July 2007. Around 250,000 babies are born in Australia each year. Vaccination of babies from 2 to 6 months of age will reduce the risk of developing severe rotavirus gastroenteritis by over 85 per cent. The decision to fund the rotavirus vaccines, Rotarix® and RotaTeq®, follows a recommendation by the Pharmaceutical Benefits Advisory Committee.

Further information can be found in the press release of 28 March 2007 issued by the Acting Minister for Health and Ageing.

National Joint Replacement Registry — increased data collection

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 0.2 0.2 0.2 0.2

The Government will provide $0.8 million over four years for the expansion of the National Joint Replacement Registry.

This measure will allow the registry to expand its current hip and knee joint replacement data collection to include ankle, shoulder, wrist and spinal disc replacements. This data collection will provide information on trends in the performance of different prostheses and treatments over time. Surgeons will be able to draw on this data to determine the most appropriate prostheses for their patients.

Pharmaceutical Benefits Scheme — community campaign to promote the benefits of generic medicines

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 15.2 2.4 2.4 -

The Government will provide $20.0 million over three years to develop and implement a public awareness and education campaign about the safety and effectiveness of generic medicines and their role in ensuring a sustainable Pharmaceutical Benefits Scheme (PBS).

This measure complements the Pharmaceutical Benefits Scheme reform measures reported in the Mid-Year Economic and Fiscal Outlook 2006-07.

Pharmaceutical Benefits Scheme — extension to the listings of Ezetrol® (ezetimibe) and Vytorin® (ezetimibe and simvastatin)

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 11.9 17.7 22.0 26.0
Medicare Australia 0.1 0.2 0.2 0.2
Total 12.0 17.8 22.2 26.2

The Government will, from 1 August 2007, extend the listing of Ezetrol® and Vytorin® on the Pharmaceutical Benefits Scheme (PBS) and Repatriation PBS, at an estimated cost of $78.3 million over four years.

Ezetrol® and Vytorin® are listed on the PBS for a range of conditions where a patient’s cholesterol levels are not adequately controlled with a standard lipid-lowering drug (statin). The extension of the listings will provide subsidised access for patients with hypertension or a family history of coronary heart disease. It will also allow those patients who are intolerant to greater than 20 mg of statin, and for whom a lesser dose alone is ineffective, to access Ezetrol® on the PBS.

The average annual cost to the PBS of providing Ezetrol® and Vytorin® is approximately $413 and $882 per patient, respectively. In the course of a year a patient is expected to require an average of seven prescriptions. General consumers will pay a $30.70 co-payment per prescription and concession card holders will pay a $4.90 co-payment per prescription.

Pharmaceutical Benefits Scheme — extension to the listings of Fosamax® Once Weekly, Alendro® Once Weekly and Fosamax® Plus (alendronate)

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 36.6 45.6 51.3 56.3
Department of Veterans’ Affairs 6.7 6.6 6.5 6.4
Medicare Australia 0.5 0.5 0.6 0.7
Total 43.8 52.8 58.5 63.3

The Government has, from 1 April 2007, extended the listings of Fosamax® Once Weekly, Alendro® Once Weekly and Fosamax® Plus (alendronate) on the Pharmaceutical Benefits Scheme (PBS) and Repatriation PBS, at an estimated cost of $227.9 million over five years (including $9.5 million in 2006-07).

Fosamax® Once Weekly, Alendro® Once Weekly and Fosamax® Plus are currently available on the PBS for patients with osteoporosis who have had a fracture due to minimal trauma and for those suffering Paget’s disease. These medications are now also available for patients aged 70 years and over with osteoporosis who are at high risk of fracture as measured by a bone mineral density test. These tests will be covered by Medicare for these patients from 1 April 2007.

The average cost to the PBS of providing Fosamax® Once Weekly, Alendro® Once Weekly and Fosamax® Plus is approximately $593 per patient per year. In the course of a year a patient is expected to require an average of 13 scripts. General consumers will pay a $30.70 co-payment per prescription and concession card holders will pay a $4.90 co-payment per prescription.

This includes funding for administering payments through Medicare Australia and additional expenditure for the Medicare Benefits Schedule and Veterans’ Benefits for testing for eligibility for the extended indication.

Further information can be found in the press release of 18 December 2006 issued by the Minister for Health and Ageing.

Pharmaceutical Benefits Scheme — listing of Strattera® (atomoxetine)

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 17.0 25.6 29.3 29.3
Medicare Australia 0.1 0.1 0.1 0.1
Total 17.0 25.7 29.4 29.5

The Government will, from 1 July 2007, list Strattera® (atomoxetine) on the Pharmaceutical Benefits Scheme (PBS) and Repatriation PBS, at an estimated cost of $101.6 million over four years. This includes funding for administering payments through Medicare Australia.

Strattera® is used in the treatment of attention deficit hyperactivity disorder (ADHD). It will be available on the PBS under an authority restriction for patients between the ages of 6 and 18 years who are diagnosed with ADHD by a paediatrician or psychiatrist where treatment with a stimulant is not appropriate. This could be due to either the presence of a pre-existing condition, or where previous stimulant use has resulted in side effects necessitating withdrawal of treatment.

The average cost to the PBS of providing Strattera® will be approximately $962 per patient per year. General consumers will pay a $30.70 co-payment per prescription (each prescription provides four weeks treatment) and concession card holders will pay a $4.90 co-payment per prescription.

Further information can be found in the press release of 12 April 2007 issued by the Minister for Health and Ageing.

Pharmaceutical Benefits Scheme — minor new listings

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 13.2 17.1 19.5 21.1
Department of Veterans’ Affairs 0.7 0.9 1.0 1.1
Medicare Australia 0.2 0.2 0.3 0.3
Total 14.1 18.2 20.7 22.4
Related revenue ($m)
Department of Health and Ageing nfp nfp nfp nfp

The Government has agreed to a number of minor new listings on the Pharmaceutical Benefits Scheme (PBS) and Repatriation PBS since the Mid-Year Economic and Fiscal Outlook 2006-07, at a cost of $78.9 million over five years (including $3.4 million in 2006-07). Revenue offsets to the cost of one minor new listing are provided under a pricing agreement negotiated between the Government and the drug manufacturer.

The minor new listings (including extensions of PBS listings) are medicines that have been listed at either no additional cost to the budget (because they replace existing listings) or at an estimated cost each of less than $10 million per annum.

Minor new listings include:

  • Humira® for the treatment of inflammatory arthritis in adults;
  • Risperdal Quicklet® for the treatment of behaviours associated with autism in children and adolescents;
  • Zoladex Plus®, a combination therapy for the treatment of metastatic prostate cancer; and
  • Concerta® for the treatment of attention deficit hyperactivity disorder.

Further information can be found in the press release of 1 March 2007 issued by the Minister of Health and Ageing and in the summary of changes included in the 1 March 2007, 1 April 2007 and 1 May 2007 updates to the Schedule of Pharmaceutical Benefits issued by the Department of Health and Ageing.

Pharmaceutical Benefits Scheme — prescribing rights for optometrists

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 1.2 2.1 3.0 3.7
Medicare Australia 0.6 0.1 0.2 0.2
Department of Veterans’ Affairs -0.2 -0.2 -0.2 -0.3
Total 1.6 2.1 2.9 3.7
Related capital ($m)
Medicare Australia 0.4 - - -

The Government will allow approved optometrists to prescribe certain ophthalmic preparations subsidised by the Pharmaceutical Benefits Scheme (PBS) and the Repatriation PBS, at a cost of $10.7 million over four years.

Under current arrangements, patients requiring ophthalmic preparations are only able to receive a PBS subsidy when prescribed by their medical practitioner. From 1 January 2008, patients will no longer be required to see a doctor in order to receive the PBS subsidy for certain ophthalmic preparations, partially offsetting the cost of the revised prescribing arrangements through reduced costs for Medicare and Veterans’ Benefits.

This measure includes funding for administering payments through Medicare Australia, including capital funding of $375,000 for IT systems enhancements.

Pharmaceutical Benefits Scheme reform — software support

Expense ($m)
2007-08 2008-09 2009-10 2010-11
Department of Health and Ageing 4.9 5.0 4.4 3.6

The Government will provide $17.9 million over four years to assist software vendors implementing Pharmaceutical Benefits Scheme (PBS) Online to meet the increased demand for the system as a result of the PBS reforms announced by the Government on 16 November 2006. The PBS reforms include increased incentives for pharmacies to take-up PBS Online, which allows streamlined payments to pharmacies of dispensing fees and other Government payments.

This funding will support software vendors to employ additional technicians and provide on-site and over‑the‑phone support during the period of increased activity.

This measure complements the Pharmaceutical Benefits Scheme reform measures reported in the Mid-Year Economic and Fiscal Outlook 2006-07.

Private Health Insurance Ombudsman — continuation of funding

Expense ($m)