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Australian Government Coat of Arms

Budget | 2014-15

Budget 2014-15
Australian Government Coat of Arms, Budget 2014-15

Part 2: Expense Measures (continued)

Health

2018 Gold Coast Commonwealth Games — operational support

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health
Attorney‑General's Department
Department of Immigration and Border Protection
Total — Expense

The Government will provide $2.5 million over two years from 2014‑15 to support coordinated planning by key agencies in readiness for the operational phase of preparations for the 2018 Gold Coast Commonwealth Games.

The cost of this measure will be met from within the existing resources of the Department of Health, the Attorney‑General's Department and the Department of Immigration and Border Protection.

See also the related expense measure titled Australian Government Commonwealth Games Funding Commitment in the Health Portfolio.

Aligning Australia and New Zealand Therapeutic Arrangements

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health nfp
Related capital ($m)
Department of Health nfp

The Government will provide funding in 2014‑15 to continue the harmonisation and alignment of schemes for the regulation of therapeutic products between Australia and New Zealand.

The expenditure for this measure is not for publication due to ongoing negotiations with the New Zealand Government.

Australian Government Commonwealth Games Funding Commitment

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health
Department of the Treasury 156.0
Total — Expense 156.0

The Government will provide $156.0 million to the Queensland Government in 2013‑14 as the Australian Government's contribution to permanent infrastructure for the 2018 Gold Coast Commonwealth Games.

See also related expense measure 2018 Gold Coast Commonwealth Games — Operational Support in the Health Portfolio.

Australian Sports Commission — redirection

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health 3.6 0.9 0.9 0.9
Australian Sports Commission ‑0.1 ‑9.7 ‑9.7 ‑9.7
Total — Expense 3.5 ‑8.8 ‑8.7 ‑8.8

The Government will achieve savings of $22.8 million over four years by moving some functions from the Australian Sports Commission (ASC) to the Department of Health and streamlining the ASC's dealings with National Sporting Organisations.

This measure will allow the ASC to focus on its core business of sports participation and high performance sport.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Boosting Dementia Research

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
National Health and Medical Research Council 32.0 31.0 31.0 40.0
Australian Research Council 8.0 9.0 9.0
Total — Expense 40.0 40.0 40.0 40.0

The Government will provide $200.0 million over five years (including $40.0 million in 2018‑19) to boost research to improve the treatment of dementia in Australia. Medical scientists and researchers will be supported by increasing the number of available research grants, scholarships and fellowships for dementia related research. Additional assistance will be provided to the Clem Jones Centre for Ageing Dementia Research which focuses on the prevention and treatment of dementia. Funding will help establish a National Institute for Dementia Research to identify and coordinate research priorities and translate existing dementia research into policy and practice.

This measure delivers on the Government's election commitment.

Further information can be found in the Coalition's Policy to Boost Dementia Research.

Charles Sturt University — dental and oral health clinic developments in New South Wales — reversal

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health ‑4.6 ‑7.1 ‑3.6

The Government will achieve savings of $15.2 million over three years by not proceeding with the Charles Sturt University — dental and oral health clinic developments in New South Wales measure which was announced in the 2013 Economic Statement.

The savings from this measure will be invested by the Government in the Medical Research Future Fund.

Commonwealth Public Hospitals — change to funding arrangements

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health
Department of the Treasury ‑217.3 ‑260.5 ‑133.4 ‑1,162.8
Total — Expense ‑217.3 ‑260.5 ‑133.4 ‑1,162.8

The Government will achieve savings of $1.8 billion over four years from 2014‑15 by ceasing the funding guarantees under the National Health Reform Agreement 2011, and revising Commonwealth Public Hospital funding arrangements from 1 July 2017. From 2017‑18, the Commonwealth will index its contribution to hospitals funding by a combination of the Consumer Price Index and population growth.

The savings from this measure will be invested by the Government in the Medical Research Future Fund.

Countering Threats from Doping in Sport

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Australian Sports Anti‑Doping Authority

The Government will provide $2.0 million in 2014‑15 to the Australian Sports Anti‑Doping Authority (ASADA) to align Australia's anti‑doping arrangements with the revised World Anti‑Doping Code that takes effect on 1 January 2015 under the UNESCO International Convention Against Doping in Sport. Funding will be used to enhance current detection and testing capabilities as well as intelligence gathering processes.

The cost of this measure will be met from within the existing resources of ASADA.

Dental Flexible Grants Programme — cessation

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health ‑50.3 ‑55.1 ‑61.2 ‑62.4

The Government will achieve savings of $229.0 million over four years by ceasing the Dental Flexible Grants Programme.

The savings from this measure will be invested by the Government in the Medical Research Future Fund.

Diagnostic Imaging Quality Programme — cessation

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health ‑1.0 ‑3.0 ‑3.4 ‑3.5 ‑3.5

The Government will achieve savings of $14.4 million over five years by ceasing the Diagnostic Imaging Quality Programme.

The savings from this measure will be invested by the Government in the Medical Research Future Fund.

Discretionary Grant Programmes — cessation of certain programmes

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health ‑3.7 ‑0.2 ‑0.1 ‑0.1 ‑0.1

The Government will achieve savings of $4.4 million over five years by not proceeding with funding for the following four grant programmes:

  • Australian Community Food Safety Campaign;
  • eHealth Summit and Implementation of Clinical Trial Functionality into Jurisdictional eHealth Systems;
  • Flat Out Incorporated Outreach Support Services for Criminalised Women; and
  • Mental Health Better Access to Education and Training.

The savings from this measure will be invested by the Government in the Medical Research Future Fund.

Doubling the Practice Incentives Programme Teaching Payment

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health 19.9 59.3 75.1 82.6
Department of Human Services 0.2 0.5 0.2 0.3 0.3
Total — Expense 0.2 20.5 59.5 75.4 82.9

The Government will provide $238.4 million over five years to double the Practice Incentives Programme (PIP) Teaching Payment for general practices who provide teaching opportunities to medical students. The PIP Teaching Payment will increase from $100 to $200 for each three hour session, to encourage general practices to provide teaching sessions to undergraduate and graduate medical students.

This measure delivers on the Government's election commitment and supports the 2014‑15 Budget measure titled Rural and Regional General Practice Teaching Infrastructure Grants to provide enhanced teaching opportunities through general practices in rural and regional settings.

Further information can be found in the Coalition's Policy to Support Australia's Health System.

Ensuring the Supply of Antivenoms, Q fever vaccine and Pandemic Influenza vaccines

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health nfp nfp nfp nfp nfp

The Government will provide funding over four years for the supply of uniquely Australian antivenoms, Q fever vaccine and pandemic influenza vaccines. The Government will approach the market to ensure continued supply of these items in a cost effective manner, which are critical to Australia's health protection.

The expenditure for this measure is not for publication due to commercial sensitivity.

See also the related expense measure titled Reform of the Operation and Management of the National Medical Stockpile in the Health Portfolio.

Establishment of Primary Health Networks

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health

The Government will refocus primary care funding by replacing Medicare Locals with Primary Health Networks from 1 July 2015. The Primary Health Networks will establish Clinical Councils, with a significant GP presence, and local Consumer Advisory Committees that are aligned to Local Hospital Networks, to ensure primary health care and acute care sectors work together to improve patient care.

The cost of this measure will be met from within the existing resources of the Department of Health.

Full implementation of National Bowel Cancer Screening Programme

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health 3.8 7.4 29.0 43.9
Department of the Treasury 0.2 4.7 6.4
Department of Veterans' Affairs .. 0.2 0.3
Department of Human Services .. .. 0.1
Total — Expense 3.8 7.6 34.0 50.5

The Government will provide an additional $95.9 million over four years to accelerate the full implementation of the National Bowel Cancer Screening Programme. This will provide access for all Australians aged 50 to 74 years to biennial screening by 2019‑20, consistent with National Health and Medical Research Council Guidelines.

This measure delivers on the Government's election commitment.

Further information can be found in the Coalition's Policy to Support Australia's Health System.

General Practice Rural Incentives Programme — additional funding

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health 35.0
Department of Human Services 0.4 ..
Total — Expense 0.4 35.0

The Government will provide an additional $35.4 million over two years from 2013‑14 to meet higher than anticipated demand for the General Practice Rural Incentives Programme. This programme provides relocation and retention incentive payments to encourage medical practitioners to work in underserviced rural, regional and remote areas.

Good Sports Programme — continuation

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health 4.6 4.7 4.8 4.9

The Government will provide $19.0 million over four years to the Australian Drug Foundation to continue the Good Sports Programme, which supports local sporting clubs to build a culture of responsible drinking at the grassroots level.

headspace Programme — additional funding

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health 4.5 1.4 1.9 7.2

The Government will provide an additional $14.9 million over four years to establish ten new headspace sites and conduct a two year evaluation of the headspace Programme.

The headspace Programme provides youth‑friendly community‑based services for young people aged 12 to 25 years who have, or are at risk of, mental illness.

This measure delivers on the Government's election commitment.

Further information can be found in the Coalition's Policy for Efficient Mental Health Research and Services.

Health Flexible Funds — pausing indexation and achieving efficiencies

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health ‑46.4 ‑69.7 ‑81.0

The Government will achieve savings of $197.1 million over three years from 2015‑16 from a number of Health portfolio Flexible Funds by pausing indexation of the funds for three years from 2015‑16 and reducing uncommitted funds.

The savings from this measure will be invested by the Government in the Medical Research Future Fund.

Improving local access to health care on Phillip Island

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of the Treasury 2.5
Department of Health
Total — Expense 2.5

The Government will provide $2.5 million in 2014‑15 to improve local access to health care by upgrading the health infrastructure at Phillip Island, Victoria.

This measure delivers on the Government's election commitment.

Indigenous teenage sexual and reproductive health and young parent support — continuation

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of the Treasury 25.5
Department of Health 0.4
Total — Expense 25.9

The Government will provide $25.9 million in 2014‑15 to continue to support programmes which address teenage sexual and reproductive health and young parent support for Aboriginal and Torres Strait Islander people. Funding will be provided to the States and Territories for health promotion and education and to provide clinical services including antenatal care for young mothers, prevention and early intervention strategies and testing and treatment for sexually transmitted infections.

This funding will continue activities currently funded under the National Partnership Agreement on Indigenous Early Childhood Development which ceases on 30 June 2014.

Investing in the nursing and allied health workforce

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health 3.4 4.9 5.0

The Government will provide $13.4 million over three years from 2014‑15 to fund 500 additional nursing and allied health scholarships. Scholarships with a value of up to $30,000 each will target workforce shortages in rural and remote areas.

This measure delivers on the Government's election commitment.

Further information can be found in the Coalition's Policy to Support Australia's Health System.

Market testing of the payment of health services by commercial payment service providers

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health 0.5

The Government will provide $0.5 million in 2014‑15 to the Department of Health to develop a proposal in consultation with the Department of Human Services to market test the delivery of a commercially integrated health payment system. Expressions of Interest will be sought from commercial providers to gauge interest in the proposal and to identify potential alternative approaches to the delivery of health payments.

Medical Research Future Fund — investments

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health 19.9 77.0 179.3

The Government will provide $276.2 million over three years from 1 July 2015 in net earnings from the Medical Research Future Fund (MRFF) to fund critical medical research in the medium to long term. The MRFF will provide a sustained funding stream for medical research, with payments from the MRFF expected to reach around $1.0 billion per year from 2022‑23.

See also the related measure titled Medical Research Future Fund—establishment in the Finance Portfolio.

Medicare Benefits Schedule — comprehensive eye examinations

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services .. 0.6 .. 0.2 ..
Department of Veterans' Affairs 0.5 1.3 0.9 0.7
Department of Health ‑8.5 ‑12.6 9.5 ‑2.2
Total — Expense .. ‑7.4 ‑11.3 10.6 ‑1.5

The Government will achieve savings of $9.6 million over five years by extending the period for Medicare rebateable comprehensive eye examinations from two years to three years for asymptomatic people aged under 65 years and reducing the period from two years to one year for asymptomatic patients aged 65 years and over.

The savings from this measure will be invested by the Government in the Medical Research Future Fund.

Medicare Benefits Schedule — introducing patient contributions for general practitioner, pathology and diagnostic imaging services

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services 0.2 7.4 34.2 28.6 26.0
Department of Health 1.4 ‑1,164.4 ‑1,181.6 ‑1,226.8
Total — Expense 0.2 8.8 ‑1,130.2 ‑1,153.0 ‑1,200.8
Related capital ($m)
Department of Human Services 5.4 2.4

The Government will achieve savings of $3.5 billion over five years by reducing Medicare Benefits Schedule (MBS) rebates from 1 July 2015 by $5 for standard general practitioner consultations and out‑of‑hospital pathology and diagnostic imaging services and allowing the providers of these services to collect a patient contribution of $7 per service.

For patients with concession cards and children under 16 years of age the MBS rebate will only be reduced for the first 10 services in each year, after which it will return to current benefit levels. A new Low Gap Incentive will replace bulk billing incentives for providers of these services. The Low Gap Incentive will be paid to providers where they provide services to patients with concession cards or children under 16 years of age and only charge the $7 patient contribution ‑ for the first 10 services in a year, or where they charge no patient contribution ‑ for additional services in that year.

The measure will also remove the restriction on State and Territory Governments from charging patients presenting to hospital emergency departments for general practitioner like attendances.

The savings from this measure will be invested by the Government in the Medical Research Future Fund.

Medicare Benefits Schedule — new and amended listings

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health 1.1 ‑0.7 ‑0.3 1.1
Department of Veterans' Affairs 0.8 1.5 1.7 2.2
Department of Human Services .. .. .. ..
Total — Expense 1.9 0.8 1.4 3.3

The Government will amend the Medicare Benefits Schedule (MBS) and Veterans' Benefits for new and amended items listed since the Mid‑Year Economic and Fiscal Outlook 2013‑14, at a net cost of $7.4 million over four years.

The amendments to the MBS include:

  • streamlining arrangements for pelvic ultrasound and breast mastectomy services and improving the safety and quality of breast mastectomies by ensuring they are performed in recognised hospital facilities;
  • extending the listing of existing items associated with the insertion, replacement or removal of a cardiac resynchronisation therapy device capable of defibrillation to patients with mild chronic heart failure;
  • a new item for the injection of botulinum toxin to treat urinary incontinence; and
  • restrictions on the ability of doctors to claim items associated with administering autologous blood injections.

Further information will be available in the summary of changes included in the MBS issued by the Department of Health when the amendments take effect.

Medicare Benefits Schedule — reduced optometry rebates and removal of charging cap

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services 0.1
Department of Health ‑10.9 ‑24.8 ‑26.3 ‑27.8
Total — Expense ‑10.8 ‑24.8 ‑26.3 ‑27.8

The Government will achieve savings of $89.6 million over four years by reducing the Medicare Benefits Schedule rebate for all optometry services from 85 per cent to 80 per cent commencing from 1 January 2015. This measure will also remove the charging cap that currently applies to optometrists accessing the Medicare Benefits Schedule, enabling them, in the future, to set their own fees in a similar manner to other health providers.

The savings from this measure will be invested by the Government in the Medical Research Future Fund.

Medicare Benefits Schedule — revised capital sensitivity provisions for diagnostic imaging equipment

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services 0.6
Department of Health 0.2 0.5 0.5 0.5
Department of Veterans' Affairs .. .. .. ..
Total — Expense 0.8 0.5 0.5 0.5

The Government will provide $2.3 million over four years to introduce changes to the capital sensitivity provisions for diagnostic imaging equipment to encourage providers to upgrade or replace aged equipment. The full Medicare Benefits Schedule (MBS) fee will be paid for services performed on newer or upgraded diagnostic imaging equipment, with the MBS fee reducing by 50 percent for services performed on older equipment.

From 1 January 2015, capital sensitivity provisions will be extended to all angiography services and the period for which the full MBS fee applies for computed tomography and Magnetic Resonance Imaging services will be extended.

Mental Health Nurse Incentive Programme — continuation

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health 22.4
Department of Human Services 1.0
Total — Expense 23.4

The Government will provide $23.4 million in 2014‑15 to maintain existing service levels for the Mental Health Nurse Incentive Programme which provides coordinated support for people with severe and persistent mental illness. This funding will enable mental health nurses, who are engaged by community based general practices, private psychiatric practices and other similar organisations, to continue to provide clinically relevant services to approximately 60,000 patients.

Mersey Community Hospital — additional funding

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health 13.6

The Government will provide an additional $13.6 million in 2014‑15 to the Mersey Community Hospital to extend the existing Heads of Agreement for one year until 1 July 2015, and for the costs of upgrading essential fire safety systems.

This funding, which is in addition to base funding of $62.7 million in 2014‑15 already included in the forward estimates, will enable the delivery of current levels of emergency, medical, surgical, obstetric and outpatient services, and will enhance patient, visitor, and staff safety at the hospital.

National Centre of Excellence in Youth Mental Health — establishment

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health 4.2 4.3 4.6 5.0

The Government will provide $18.0 million over four years to the Orygen Youth Health Research Centre to establish and operate a National Centre for Excellence in Youth Mental Health. This measure will improve the options for treatment and support available to young people affected by mental illness and their carers.

This measure delivers on the Government's election commitment.

Further information can be found in the Coalition's Policy for Efficient Mental Health Research and Services.

National Partnership Agreement for adult public dental services — deferral

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health ‑0.5 ‑0.2 ‑0.1 ‑0.1
Department of the Treasury ‑200.0 ‑95.0 ‑95.0
Total — Expense ‑200.5 ‑95.2 ‑95.1 ‑0.1

The Government will achieve savings of $390.0 million over four years from 2014‑15 by deferring the commencement of the Mid‑Year Economic and Fiscal Outlook 2012‑13 measure Dental health reform — National Partnership Agreement for adult public dental services from 2014‑15 to 2015‑16.

The savings from this measure will be invested by the Government in the Medical Research Future Fund.

National Partnership Agreement on Improving Public Hospital Services — cessation

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health
Department of the Treasury ‑99.5 ‑99.5 ‑2.0
Total — Expense ‑99.5 ‑99.5 ‑2.0

The Government will achieve savings of $201.0 million over three years from 2015‑16 by ceasing reward funding to States and Territories under the National Partnership Agreement on Improving Public Hospital Services.

The savings from this measure will be invested by the Government in the Medical Research Future Fund.

National Partnership Agreement on Preventive Health — cessation

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health
Department of the Treasury ‑53.5 ‑53.5 ‑130.4 ‑130.5
Total — Expense ‑53.5 ‑53.5 ‑130.4 ‑130.5

The Government will achieve savings of $367.9 million over four years by ceasing the National Partnership Agreement on Preventive Health.

The savings from this measure will be invested by the Government in the Medical Research Future Fund.

National Tobacco Campaign — a new and lower cost media campaign

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health 1.5
Australian National Preventive Health Agency ‑4.4
Total — Expense ‑2.9

The Government will save $2.9 million in 2013‑14 by ceasing the next phase of the Australian National Preventive Health Agency's mainstream National Tobacco Campaign and the Department of Health developing a new lower cost online and social media campaign to support smoking cessation activities.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Northern Territory Medical Programme — consolidation

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health 2.2 2.2 2.3 2.3
Department of the Treasury ‑2.3 ‑2.3 ‑2.4 ‑2.4
Total — Expense ‑0.1 ‑0.1 ‑0.1 ‑0.1

The Government will achieve savings of $0.4 million over four years from administrative efficiencies resulting from the consolidation of the Northern Territory Medical Programme with the Indigenous Transition Pathway and the Northern Territory Remote Clinical School Initiative.

These programmes contribute to building a sustainable Northern Territory health workforce with medical and culturally appropriate skills to work in rural and remote health in the Northern Territory.

The savings from this measure will be invested by the Government in the Medical Research Future Fund.

Partners in Recovery — reduced funding

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health ‑25.3 ‑28.5

The Government will achieve savings of $53.8 million by deferring the establishment of the remaining 13 Partners in Recovery organisations for two years from 2013‑14. The existing 48 organisations will continue to provide people who have a severe and persistent mental illness and complex support needs with integrated support that coordinates clinical, housing, education, employment, income and disability services. This deferral will enable the effectiveness of the existing sites and their interaction with the National Disability Insurance Scheme to be assessed.

The savings from this measure will be invested by the Government in the Medical Research Future Fund.

Pausing indexation of some Medicare Benefits Schedule fees and the Medicare Levy Surcharge and Private Health Insurance Rebate thresholds

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services .. .. 0.1 ..
Department of Veterans' Affairs ‑10.2 ‑16.0 ‑16.8 ‑23.5
Department of Health ‑131.5 ‑378.5 ‑480.1 ‑597.3
Total — Expense .. ‑141.6 ‑394.5 ‑496.9 ‑620.8
Related revenue ($m)
Australian Taxation Office 7.0 14.0

The Government will achieve savings of $1.7 billion over five years by pausing the indexation of some Medicare Benefits Schedule (MBS) fees for two years from 1 July 2014 and the income thresholds for the Medicare Levy Surcharge and Private Health Insurance Rebate for three years from 1 July 2015. General practice MBS fees will be excluded. MBS fees which are not currently indexed, such as pathology and diagnostic imaging services, will not be affected.

The savings from this measure will be invested by the Government in the Medical Research Future Fund.

Personally Controlled Electronic Health Record System — continuation

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health 118.8
Department of Human Services 20.8
Department of Veterans' Affairs 0.1
Total — Expense 139.6
Related capital ($m)
Department of Human Services 1.0

The Government will provide $140.6 million in 2014‑15 for the continued operation of the Personally Controlled Electronic Health Record (PCEHR) system while the Government finalises its response to the review of the PCEHR.

This measure supports the Government's commitment for a shared electronic health record for patients.

Pharmaceutical Benefits Scheme — increase in co‑payments and safety net thresholds

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services 0.1 .. ‑0.9 ‑1.3 ‑1.8
Department of Veterans' Affairs ‑1.9 ‑4.4 ‑4.2 ‑4.2
Department of Health ‑143.3 ‑301.3 ‑361.0 ‑442.6
Total — Expense 0.1 ‑145.2 ‑306.7 ‑366.5 ‑448.5

The Government will achieve savings of $1.3 billion over four years from 1 January 2015 by increasing the Pharmaceutical Benefits Scheme (PBS) co‑payments and safety net thresholds.

Co‑payments will increase for general patients by $5.00 (from $37.70 to $42.70) and for concessional patients by $0.80 (from $6.10 to $6.90) in 2015.

PBS safety net thresholds will increase each year for four years from 1 January 2015, with general safety net thresholds to increase by 10 per cent each year and concessional safety nets to increase by the cost of two prescriptions each year.

These increases are in addition to the existing annual indexation of co‑payments and safety net thresholds in line with the Consumer Price Index.

The savings from this measure will be invested by the Government in the Medical Research Future Fund.

Pharmaceutical Benefits Scheme — medication charts for public and private hospitals

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services 0.1 4.6 3.3 1.3 0.6
Department of Health 4.3 1.4 0.4 0.4
Total — Expense 0.1 9.0 4.7 1.7 1.0
Related capital ($m)
Department of Health 0.1

The Government will provide $16.5 million over five years to reduce red tape for medical practitioners by enabling paperless claiming for Pharmaceutical Benefits Scheme medicines dispensed from medication charts in public and private hospitals.

This measure will also increase the safety of patients by reducing the risk of dispensing errors during the transcription of data from medication charts.

Pharmaceutical Benefits Scheme — new and amended listings

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health 6.2 69.2 82.9 94.7 107.1
Department of Veterans' Affairs 0.1 2.2 2.4 2.7 3.0
Department of Human Services 0.6 1.8 1.4 1.9 2.5
Total — Expense 6.9 73.2 86.8 99.3 112.6
Related revenue ($m)
Department of Health nfp nfp nfp nfp nfp

The Government will provide $378.7 million over five years for a number of new and amended listings on the Pharmaceutical Benefits Scheme and the Repatriation Pharmaceutical Benefits Scheme.

New and amended listings since the Mid‑Year Economic and Fiscal Outlook 2013‑14 include:

  • Nesina Met® (alogliptin and metformin) for the treatment of diabetes from 1 February 2014;
  • Trajenta Duo® (linagliptin with metformin) and Kombiglyze® (saxagliptin with metformin) for the treatment of diabetes from 1 March 2014;
  • Votrient® (pazopanib) for the treatment of soft tissue sarcoma from 1 March 2014;
  • Actemera® (tocilizumab) for the treatment of juvenile idiopathic arthritis from 1 April 2014;
  • Tobi®Podhaler® (tobramycin) for the treatment of bacterial lung infections in patients with cystic fibrosis from 1 April 2014;
  • Clobex® (clobetasol) and Daivobet® (betamethasone calcipotriol) for the treatment of scalp psoriasis from 1 April 2014;
  • Stribild® (tenofovir) for the treatment of HIV from 1 May 2014;
  • Afinitor® (everolimus) for the treatment of advanced breast cancer from 1 June 2014;
  • Ferinject® (ferric carboxymaltose) for the treatment of iron deficiency from 1 June 2014;
  • Botox® (botulinum toxin) for the treatment of urinary incontinence from 1 November 2014.

The costs of some of these medicines are reduced by the revenue from pricing agreements negotiated between the Government and the pharmaceutical manufacturers. Details of this revenue is not for publication due to commercial sensitivity.

Further information can be found in the press releases of 27 February 2014, 18 March 2014 and 24 April 2014 issued by the Minister for Health.

Pharmaceutical Benefits Scheme — price amendments

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health 0.4 1.3 1.2 1.2 1.2
Department of the Treasury 0.1 0.6 0.6 0.6 0.6
Department of Veterans' Affairs .. 0.1 .. .. ..
Total — Expense 0.5 2.0 1.8 1.9 1.9

The Government will provide $8.1 million over five years for price amendments for certain medicines currently listed on the Pharmaceutical Benefits Scheme and the Repatriation Pharmaceutical Benefits Scheme.

Price amendments since the Mid‑Year Economic and Fiscal Outlook 2013‑14 include:

  • Rabeprazole for the treatment of gastric reflux;
  • Simvastatin for the treatment of high cholesterol;
  • Methylprednisolone for the treatment of arthritis pain and inflammation; and
  • Pindolol for the treatment of high blood pressure.

Further information can be found in the press release of 18 March 2014 issued by the Minister for Health.

Rebuilding general practice education and training to deliver more GPs

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health 120.3 223.5 233.3 252.0
General Practice Education and Training Limited ‑136.7 ‑264.5 ‑269.2 ‑274.1
Total — Expense ‑16.4 ‑40.9 ‑35.9 ‑22.1

The Government will support training for up to 300 extra General Practitioners (GPs) a year by boosting GP training places from 1200 to 1500 places in 2015. This will be achieved by increasing the number of fully funded Commonwealth GP training places under the Australian General Practice Training Programme (AGPT), reducing AGPT funding for training registrars employed by State Governments and introducing new training places co‑funded by GP practices.

These measures along with administrative efficiencies achieved by abolishing General Practice Education and Training Limited and consolidating its functions into the Department of Health, and ceasing the Prevocational General Practice Placements Scheme will achieve net savings of $115.4 million over four years.

The savings from this measure will be invested by the Government in the Medical Research Future Fund.

Reform of the Operation and Management of the National Medical Stockpile

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health 1.5 5.1 4.6 4.2

The Government will provide $15.4 million over four years to implement operational and management reforms to the National Medical Stockpile (the Stockpile) aimed at reducing waste, decreasing risk, increasing the surety of supply, and strengthening deployment capabilities.

Key reforms include renegotiating responsibilities for the Stockpile with the States and Territories to address duplication and waste, and outsourcing management of some purchasing and inventory management of the Stockpile to a Prime Vendor.

See also the related capital measure titled Routine Replenishment of the National Medical Stockpile in the Health Portfolio.

Rural and Regional General Practice Teaching Infrastructure Grants

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health 21.0 21.0 10.5

The Government will provide $52.5 million over three years for at least 175 infrastructure grants for existing general practices in rural and remote settings to provide additional consultation rooms and space for teaching and training. This investment will strengthen the rural health workforce and improve health service delivery in these communities.

The grants will be capped at $300,000 and successful practices will be required to match the Commonwealth commitment.

This measure delivers on the Government's election commitment.

Further information can be found in the Coalition's Policy to Support Australia's Health System.

Simplified and consistent health and medical research

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
National Health and Medical Research Council 4.1 5.0 0.3 0.3

The Government will provide $9.9 million over five years from 2014‑15 (including $0.3 million in 2018‑19) to develop a nationally consistent approach to the way clinical research trials are overseen and conducted and to streamline and simplify National Health and Medical Research Council grant application and assessment processes.

This measure delivers on the Government's election commitment.

Further information can be found in the Coalition's Policy to Protect and Streamline Health and Medical Research Funding.

Simplifying Medicare safety net arrangements

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services 0.2 2.5 8.7 1.8 0.2
Department of Health 0.9 ‑53.4 ‑115.0 ‑116.3
Total — Expense 0.2 3.4 ‑44.7 ‑113.1 ‑116.1
Related capital ($m)
Department of Human Services 2.0 1.6

The Government will achieve savings of $266.7 million over five years by simplifying Medicare safety net arrangements. From 1 January 2016, the existing Original Medicare Safety Net, Extended Medicare Safety Net and Greatest Permissible Gap will be replaced by the new Medicare Safety Net. There will be new safety net thresholds of $400 for concessional singles and concessional families, $700 for non‑concessional FTB‑A families and non‑concessional singles, and $1,000 for non‑concessional families who do not receive FTB‑A.

The Medicare Safety Net assists Australian families and singles by contributing towards out‑of‑pocket costs for Medicare eligible out‑of‑hospital services. Once the annual thresholds have been met in a calendar year, Medicare will pay 80 per cent of any subsequent out‑of‑pocket costs, capped at 150 per cent of the Medicare Benefits Schedule (MBS) fee. The out‑of‑pocket costs that accumulate to reaching those safety net thresholds will also be capped at 150 per cent of the MBS fee.

The savings from this measure will be invested by the Government in the Medical Research Future Fund.

Smaller Government — Australian National Preventive Health Agency — abolish

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health 1.0 23.6 21.3 21.0 21.3
Australian National Preventive Health Agency ‑23.8 ‑23.3 ‑23.6 ‑23.9
Total — Expense 1.0 ‑0.2 ‑2.0 ‑2.6 ‑2.6

The Government will achieve savings of $6.4 million over five years from 2013‑14 by abolishing the Australian National Preventive Health Agency and integrating ongoing functions into the Department of Health, including the administration of social marketing activities and the provision of grants to third parties for preventive health activities.

The savings from this measure will be invested by the Government in the Medical Research Future Fund.

Smaller Government — More Efficient Health Workforce Development

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health 5.1 188.0 169.9 166.4 190.5
Health Workforce Australia ‑211.5 ‑214.1 ‑216.8 ‑219.5
Total — Expense 5.1 ‑23.6 ‑44.2 ‑50.3 ‑29.0

The Government will achieve savings of $142.0 million over five years by abolishing Health Workforce Australia and consolidating its functions into the Department of Health. Savings will be achieved through administrative efficiencies, ceasing the planned expansion of the Clinical Training Funding Programme which is currently managed by Health Workforce Australia, and redirecting uncommitted funds in the Health Workforce Fund.

This measure delivers on the Government's election commitment.

Sporting Schools Initiative

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Australian Sports Commission 20.0 39.6 39.2
Total — Expense 20.0 39.6 39.2
Related capital ($m)
Australian Sports Commission 1.5
Total — Capital 1.5

The Government will provide $100.3 million over three years from 2014‑15 to the Australian Sports Commission (ASC) to encourage school students to participate in physical activity before, during and after school.

Through the Sporting Schools Initiative, the ASC will provide grants and resources to schools and sports groups to administer sporting programmes in up to 5,760 sites across Australia, with approximately 860,000 children participating each year.

Stoma Appliance Scheme — new listing and amendments

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health .. .. ‑0.1 ‑0.1

The Government will achieve savings of $0.2 million over four years through the listing of three new items and amendments to the prices of three current items on the Stoma Appliance Scheme from 1 July 2014.

The Stoma Appliance Scheme assists eligible people to better manage their condition by providing subsidised access to stoma‑related products, such as pouches, skin protectors, flow filters and creams.

The savings from this measure will be invested by the Government in the Medical Research Future Fund.

Supporting the Royal Flying Doctor Service

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health 6.0

The Government will provide an additional $6.0 million in 2014‑15 to support the Royal Flying Doctor Service to deliver emergency and primary health care services to people in rural and remote communities of Australia.

This measure supports the Government's commitment to rural and remote communities.

Tasmanian nursing and allied health scholarship and support scheme — cessation

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health ‑2.0 ‑2.6 ‑2.6 ‑2.7

The Government will achieve savings of $9.9 million over four years by ceasing funding for the nursing and allied health scholarships support scheme under the Tasmanian Health Assistance Package. The nursing scholarships will cease from 1 July 2014 and the allied health scholarships from 1 July 2015.

Access to nursing and allied health scholarships will continue through the related expense measure titled Investing in the nursing and allied health workforce in the Health Portfolio.

The savings from this measure will be invested by the Government in the Medical Research Future Fund.

Tobacco Plain Packaging Litigation

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health nfp nfp nfp nfp

The Government will provide funding to defend international legal proceedings initiated by tobacco companies against the Tobacco Plain Packaging Act 2011.

The funding will support work undertaken by the Department of Health, the Attorney‑General's Department, the Department of Foreign Affairs and Trade and the Australian Government Solicitor to defend current and potential litigation, and process freedom of information requests.

The expenditure for this measure is not for publication to protect the Australian Government's position in any litigation.

Transfer of Payment Administration Functions for Professional Pharmacy Programmes

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health 0.6 1.4
Department of Human Services ‑0.6 ‑1.4
Total — Expense

The Government will provide $2.1 million over two years to the Pharmacy Guild of Australia (the Guild) to administer the payment functions for Professional Pharmacy Programmes under the Fifth Community Pharmacy Agreement. These programmes were previously administered by the Department of Human Services.

The Programmes to be administered by the Guild include the Home Medicines Review Programme, Residential Medication Management Review Programme, Diabetes Medication Management Service, Medicines Use Review, Rural Pharmacy Maintenance Allowance, Section 100 Support Allowance, and the Pharmacy Practice Incentives Programme.

The cost of this measure will be met from within the existing resources of the Department of Human Services.

Water Safety — reduce drownings

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health 1.0 3.0 3.0 3.0 5.0

The Government will provide $15.0 million over five years to surf life saving and water safety organisations to support their efforts to reduce drowning deaths and promote water safety.

This measure delivers on the Government's election commitment.

Further information can be found in the Coalition's Policy to Reduce Drownings.

World Health Organization — reduced funding

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Health ‑2.3

The Government will achieve savings of $2.3 million by reducing its voluntary additional contribution to the World Health Organization.

The savings from this measure will be invested by the Government in the Medical Research Future Fund.