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2003-04 Budget

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Health and Ageing

A Fairer Medicare - Better Access, More Affordable

A Fairer Medicare is an integrated package of measures, which builds on the Government's commitment to the universality of Medicare. The package will make a range of medical services more affordable, particularly those delivered through general practice. A Fairer Medicare will deliver better access through a series of measures, which will increase the size of the medical workforce, particularly in outer-metropolitan and rural areas.

The three pillars of universal Medicare available to all Australians are access to the Medicare rebate, access to free treatment in public hospitals and subsidies for pharmaceuticals through the Pharmaceutical Benefits Scheme. A Fairer Medicare maintains universal coverage for all patients to the Medicare rebate. It provides financial incentives for doctors to bulk bill patients in greatest need, without a means test. As is the case now, doctors will be free to bulk bill any patient, regardless of whether they hold a Commonwealth concession card.

Table 7: A Fairer Medicare: Summary of measures

Table 7:  A Fairer Medicare:  Summary of measures

A Fairer Medicare - new GP training places

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Health and Ageing 12.9 37.5 63.0 76.0

The Government will provide $189.5 million over four years to increase the number of GP training places to allow for an additional 150 new GP trainees per year. This will increase the total number of new GP trainees to 600 in any one year. The new places will be focused on rural and outer-metropolitan areas, with the aim of encouraging more GPs into areas of workforce shortage.

This measure will also include funding to train and accredit GPs in the targeted areas to enable them to access GP trainees.

This programme will run for seven years, with funding to be reviewed in the 2009-10 Budget.

A Fairer Medicare - additional medical school places

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Health and Ageing 1.4 0.8 0.8 0.6
Department of Education, Science and Training 3.7 7.6 11.6 15.8

The Government will provide $42.1 million over four years to introduce an additional 234 publicly funded medical school places per year from the beginning of the 2004 academic year. These additional places are expected to address concerns that the current supply of medical practitioners will not be adequate to meet long-term needs.

The Government will require students who accept one of these additional places to enter into a contract to work in a designated area of workforce shortage for six years after completing their training. In the event that undergraduate medical students do not fulfil this obligation, they would be required to repay the entire cost of their training to the Commonwealth.

This programme will run for nine years with funding to be reviewed in the 2011-12 Budget.

See also the related revenue measure titled A Fairer Medicare - additional medical school places in the Education, Science and Training portfolio.

A Fairer Medicare - more practice nurses and allied health workers for urban areas of workforce shortage

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Health and Ageing 15.0 15.7 16.4 17.1

The Government will provide $64.2 million over four years to introduce a general practice incentive payment for practices participating in the GP Access Scheme to employ practice nurses and allied health workers in urban areas of workforce shortage. This measure builds on the success of an earlier measure, which provided similar funding to practices in rural and regional areas. This allows the GP to concentrate on patients who specifically require a GP's services, and allows practices to achieve a greater throughput of patients with the existing number of GPs.

In part, this measure redirects a small proportion of funding from the 2002-03 Budget measure More Doctors for Outer Metropolitan Areas. This has been done at the request of GP groups, who support funding other health care professionals to see patients with health care needs better met by practice nurses or physiotherapists.

A Fairer Medicare - reducing up front costs for GP visits

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Health and Ageing 4.7 1.9 1.8 1.8

The Government will provide $11 million over five years, including $0.9 million in 2002-03, to improve general patient affordability by allowing patients who are charged above the Medicare rebate to pay only the gap amount charged by the GP, while the GP claims the Medicare rebate direct from the Health Insurance Commission. GPs will only have access to this facility if they agree to participate in the GP Access Scheme.

Amendments to the Health Insurance Act 1973 will be required to enable this programme to operate.

A Fairer Medicare - encourage GP take up of HIC Online

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Health and Ageing 4.2 2.0 1.3 0.2

The Government will provide $9 million over five years, including $1.3 million in 2002-03, to assist GPs to adopt 'HIC Online'. This package will assist GPs who have agreed to bulk bill patients with concession cards, by providing them with access to a real-time electronic claiming service for Medicare rebates. GPs who use the new system will also be eligible to receive their rebate within two days, rather than the current eight days.

A Fairer Medicare - GP incentive payments to bulk bill patients with concession cards

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Health and Ageing 46.8 80.0 103.1 115.6

The Government will provide $346.2 million over five years, including $0.7 million in 2002-03 for a GP Access Scheme, to offer an incentive payment to GPs to encourage bulk billing of patients with concession cards. Under this measure, GPs who elect to take part in the scheme will undertake to bulk bill all of their patients with concession cards in return for a fixed dollar additional payment per concessional service, regardless of service type. Differing incentive payments will be offered on a regional basis - with the highest incentive payments being offered to remote areas. The incentive payment will be indexed annually by the Consumer Price Index.

A Fairer Medicare - improved information and practice management

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Health and Ageing 1.8 1.9 1.4 1.0

The Government will provide funding of $6.1 million over four years to enable GPs to place signage in their surgeries to ensure that patients are made aware of which practices are participating in the GP Access Scheme and of any gap payments the practice may charge.

As part of this measure, the Government will also fund a programme to assist GPs to improve management of their waiting lists. Divisions of General Practice will be funded to work with practices that wish to take part in the programme, to examine service demand patterns and advise on scheduling and more efficient appointment systems.

A Fairer Medicare - new Medicare safety net for patients with concession cards

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Health and Ageing 12.8 17.9 17.7 18.1

The Government will provide $67.1 million over five years, including $0.6 million in 2002-03, to introduce an extended safety net for patients with concession cards, which will cover 80 per cent of all out-of-pocket costs for Medicare items over a set threshold. Under this measure, the maximum an individual or family covered by a Commonwealth concession card will pay in out-of-pocket costs on out-of-hospital items covered by Medicare will be $500 per calendar year before the new safety net comes into effect.

This safety net is expected to supplement and improve the existing Medicare safety net, which funds up to 100 per cent of the scheduled fee once a registered individual or family exceeds an expenditure limit.

A Fairer Medicare - new private health insurance safety net for out-of-hospital Medicare expenses

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Health and Ageing 16.3 24.2 23.5 24.4

The Government will provide $89.6 million over five years, including $1.2 million in 2002-03, to provide the 30 per cent private health insurance rebate to people who take up a private health insurance product which provides a safety net for out-of-pocket medical expenses related to specialist, diagnostic or GP services provided out of hospital.

Funds will be able to cover up to 100 per cent of a member's out-of-pocket expenses above $1000 in any calendar year. Out-of-pocket expenses are those incurred by the patient in excess of the benefit provided by the Government under Medicare.

A Fairer Medicare - access to broadband technology

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Health and Ageing 4.1 5.1 - -

The Government will provide $9.2 million over two years to assist GPs in identified areas of need to access the broadband technology necessary for them to adopt initiatives such as HIC Online.

GPs will be directly assisted to access affordable broadband technologies and indirectly assisted with implementing those technologies including through Divisions of General Practice, who will train and assist GPs to maximise the practical benefits from the new technologies.

A Fairer Medicare - information for the public and medical professionals

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Health and Ageing 19.1 - - -

The Government will provide $21.1 million over two years, with $1.9 million provided in 2002-03, to deliver a communications package which will clearly advise all relevant stakeholders of their rights, entitlements and obligations under the A Fairer Medicare package.

A Fairer Medicare - veteran access fee for Local Medical Officers

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Veterans' Affairs 15.6 14.7 15.3 16.0

The Government will provide funding of $61.7 million over four years to provide greater certainty and continued access to GPs for members of the veteran community who are entitled to health care at the Commonwealth's expense through their Gold or White Repatriation Health Cards. Local Medical Officers will be eligible for an additional veteran access fee of $3 for each service provided to an eligible veteran or war widow, to be paid quarterly in arrears. The fee will be indexed annually by the Consumer Price Index.

National Illicit Drugs Strategy

The Government is providing funding of $316 million over four years for a range of new and continuing measures to address illicit drug use in Australia. This funding includes $216 million over four years for the continuation of the Council of Australian Governments' National Illicit Drug Diversion Initiative and new measures totalling $13.9 million to address emerging areas of illicit drug use in Australia. This package builds on the existing National Illicit Drug Strategy, which commenced in 1996-97. In total, the Government has provided more than $1 billion for measures to reduce the supply of and demand for illicit drugs in the community.

The new package targets: amphetamine-type stimulants and cocaine (psychostimulants); the management and treatment of drug users with mental health problems (comorbidities); offshore law enforcement operations; and access to drug-related services in rural and regional Australia.

The package provides funding for demand reduction measures in the Health and Ageing portfolio, the Education, Science and Training portfolio, and the Family and Community Services portfolio, and for supply reduction measures in the Attorney-General's portfolio.

Table 8: National Illicit Drugs Strategy: Summary of measures

Table 8:  National Illicit Drugs Strategy:  Summary of measures

Table 8: National Illicit Drugs Strategy: Summary of measures (continued)

Table 8:  National Illicit Drugs Strategy:  Summary of measures (continued)

National Illicit Drugs Strategy - Prevention of Illicit Drug Manufacturing Strategy

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Attorney-General's Department 1.1 1.1 1.0 1.1

The Government will provide $4.3 million to implement programmes targeting precursor chemicals used in the illicit manufacture of drugs. The funds will provide for a national forensic database on illicit drug laboratories, strategic research and analysis of current and emerging threats, partnership initiatives, and the raising of awareness amongst key sectors.

National Illicit Drugs Strategy - enhanced technical capacity for the Australian Crime Commission and the Australian Federal Police

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Australian Federal Police - - - -
Australian Crime Commission - - - -

The Government will provide funding to the Australian Federal Police (AFP) and the Australian Crime Commission (ACC) to continue programmes to investigate illicit drug trafficking and other major crimes.

This measure will involve ongoing funding of $2 million each year from 2003-04 for the ACC and $1 million each year from 2003-04 for the AFP. Provision for this funding has already been included in the forward estimates.

National Illicit Drugs Strategy - Australian Federal Police Law Enforcement Cooperation Programme

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Australian Federal Police - - - -

The Government will continue to provide funding to the Australian Federal Police for the Law Enforcement Cooperation Programme, to support the offshore disruption of transnational criminal threats. The programme facilitates cooperation with overseas law enforcement agencies to increase the flow of intelligence information on activities that may impact adversely on Australian security.

This measure will involve funding of $2.1 million in 2003-04, $2.2 million in 2004-05, $2.2 million in 2005-06 and $2.2 million in 2006-07. Provision for this funding has already been included in the forward estimates.

National Illicit Drugs Strategy - Australian Federal Police Overseas Liaison Network

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Australian Federal Police - - - -

The Government will continue to provide funding to the Australian Federal Police for the Overseas Liaison Network. The network supports Australia's drug law enforcement intelligence and participation in joint investigations with overseas law enforcement agencies to disrupt the supply of illicit drugs reaching Australia.

This measure will involve funding of $1.4 million in 2003-04, $1.5 million in 2004-05, $1.5 million in 2005-06 and $1.5 million in 2006-07. Provision for this funding has already been included in the forward estimates.

National Illicit Drugs Strategy - Australian Federal Police communications network

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Australian Federal Police - - - -

The Government will continue to provide funding for the connection of Australian Federal Police overseas posts to the national computer system, AFPNET. This system allows overseas liaison officers to access real-time information on operations.

Provision for this funding, $5.1 million over four years, has already been included in the forward estimates.

National Illicit Drugs Strategy - continued drug use monitoring by the Australian Institute of Criminology

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Australian Institute of Criminology 1.1 1.1 1.1 1.0

The Government will provide funding of $4.3 million over four years to enable the Australian Institute of Criminology to continue the Government's Drug Use Monitoring in Australia programme. The programme aims to build a comprehensive and ongoing national picture of drug use and crime in Australia by conducting interviews and urinalysis of police detainees.

National Illicit Drugs Strategy - enhanced financial intelligence to target illicit drug trafficking and related activities

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Australian Transaction Reports and Analysis Centre 2.3 - - -

The Government will provide additional funding of $2.3 million to enhance the Australian Transaction Reports and Analysis Centre's (AUSTRAC) financial intelligence capability to identify illicit drug trafficking and related activities. This funding will assist AUSTRAC to further coordinate activities with the Australian Federal Police, the Australian Customs Service and the Australian Crime Commission in relation to drug-related money laundering as well as providing training and support for national law enforcement agencies in the analysis of financial transactions data.

AUSTRAC are implementing a cost recovery model to take effect before the 2004-05 Budget, enabling the continuation of increased levels of service.

See also the related expense measure titled National Illicit Drugs Strategy - financial intelligence intensive training and support for the Australian Transaction Reports and Analysis Centre and the related capital measure titled National Illicit Drugs Strategy - enhanced financial intelligence to target illicit drug trafficking and related activities in the Attorney-General's portfolio.

National Illicit Drugs Strategy - financial intelligence intensive training and support for the Australian Transaction Reports and Analysis Centre

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Australian Transaction Reports and Analysis Centre - - - -

The Government will continue to provide funding to the Australian Transaction Reports and Analysis Centre to provide law enforcement agencies with intensive training and support to better integrate financial intelligence into major drug and money laundering investigations.

This measure will involve funding of $0.5 million in 2003-04, $0.5 million in 2004-05, $0.5 million in 2005-06 and $0.5 million in 2006-07. Provision for this funding has already been included in the forward estimates.

See also the related capital and expense measures titled National Illicit Drugs Strategy - enhanced financial intelligence to target illicit drug trafficking and related activities in the Attorney-General's portfolio.

National Illicit Drugs Strategy - funding to the Australian Transaction Reports and Analysis Centre for the High-Risk Cash Dealer Strategy

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Australian Transaction Reports and Analysis Centre - - - -

The Government will continue to provide funding to the Australian Transaction Reports and Analysis Centre for the High-Risk Cash Dealer Strategy, to ensure the ongoing provision of high quality financial intelligence, targeting organised criminal networks involved in drug trafficking and other forms of major crime.

The High-Risk Cash Dealer Strategy consists of an audit and monitoring programme for the reporting of cash transactions over $10,000 under the Financial Transactions Reporting Act 1988.

This measure will involve funding of $1.8 million in 2003-04, $1.8 million in 2004-05, $1.8 million in 2005-06 and $1.9 million in 2006-07. Provision for this funding has already been included in the forward estimates.

National Illicit Drugs Strategy - reprioritisation of funding for retractable needles and syringes

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Health and Ageing -3.3 -5.4 - -

The Government will redirect funding of $8.7 million over 2003-04 and 2004-05 from the introduction of retractable needle and syringe technology to other Health and Ageing portfolio initiatives in this package, which seek to reduce the demand for illicit drugs. The original level of research and development funding for retractable needle and syringe technology is no longer required because there has been a significant increase in the number of commercial providers developing this technology.

The Government will continue to provide $17.5 million over three years ($2.8 million in 2003-04, $2.6 million in 2004-05 and $12.1 million in 2005-06) to address community concerns about the risk of injury from needles discarded in public places through funding for the final phase of research and development, including pilots of the technology in selected settings and the implementation of retractable technology across needle and syringe programmes nationally. Provision for this funding has already been included in the forward estimates.

National Illicit Drugs Strategy - cannabis cessation strategies

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Health and Ageing -0.3 -0.3 -0.3 -0.3

This programme was designed to develop resources for cannabis-dependent adults and adolescents. These resources have been successfully developed and distributed, and funds no longer required will be redirected to new initiatives on illicit drugs contained in this Budget.

National Illicit Drugs Strategy - redirection of funds from the Community Partnerships Initiative

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Health and Ageing -1.1 -1.1 -1.1 -1.1

The Community Partnerships Initiative will be allocated $12 million from 2003-04 to 2005-06 to assist community organisations to provide direct assistance to those dealing with drug abuse at a local level from the 2002-03 Budget measure titled Community Partnership Initiative. However, $4.4 million previously allocated will be redirected to higher priorities in the National Illicit Drug Strategy.

National Illicit Drugs Strategy - psychostimulants initiative

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Health and Ageing 1.0 1.0 - -

The Government will provide funding of $2 million over two years to address problems associated with the increased availability and use of psychostimulants. The increased use of psychostimulant drugs and, in particular, more harmful forms of these drugs (such as methamphetamines), has significant health and social implications for drug users and the broader community.

Funding will provide for the evaluation of treatment options and the development of guidelines for frontline workers.

National Illicit Drugs Strategy - National Comorbidity Initiative

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Health and Ageing 1.7 2.7 - -

The Government will provide funding of $4.4 million over two years to improve service coordination and treatment outcomes for clients with both illicit drug addiction and mental illness. The measure will improve coordination across psychiatric/mental health services and drug treatment services, develop best practice guidelines for service delivery, and increase professional education and training.

National Illicit Drugs Strategy - research fund

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Health and Ageing 0.7 0.7 0.7 0.7

The Government will provide funding of $2.8 million over four years for interdisciplinary research into the prevention and treatment of illicit drug use, and to provide sufficient resources to attract new researchers to the field. Priority will be given to research into the interaction between mental health and substance abuse and psychostimulant use. Funding will also be available for investigator-driven research.

National Illicit Drugs Strategy - rural and regional initiative

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Health and Ageing 1.0 1.0 1.0 1.0

The Government will provide funding of $4 million over four years to improve access to treatment and referral for illicit drug users in rural and regional Australia. In recognition of the particular circumstances of rural and regional communities, this initiative will undertake a number of projects to investigate mechanisms to improve access to specialist skills and broader drug treatment networks.

National Illicit Drugs Strategy - Australian Drug Information Network

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Health and Ageing 0.3 0.3 0.3 0.3

The Government will provide funding of $1 million over four years to maintain the Australian Drug Information Network (ADIN). The ADIN is a portal website that provides access to a wide range of web-based information on illicit drug use through a comprehensive search capability of over 600 quality reviewed websites, and uses web browsers to assist in locating information on treatment services and resources. This website provides information to both the general community and drug workers.

National Illicit Drugs Strategy - Needle and Syringe Programme distribution of injecting equipment

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Health and Ageing - - - -

The Government will provide $16.3 million over four years for the distribution of injecting equipment to illicit drug users through Needle and Syringe Programmes in an increased number of pharmacies and other outlets. Needle and Syringe Programmes have proven to be effective in reducing the transmission of blood-borne viruses such as HIV and Hepatitis C.

This measure will involve funding of $3.9 million in 2003-04, $4.0 million in 2004-05, $4.1 million in 2005-06 and $4.2 million in 2006-07. Provision for this funding has already been made in the forward estimates.

National Illicit Drugs Strategy - maintain education, counselling and referral services through Needle and Syringe Programmes

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Health and Ageing - - - -

The Government will maintain funding for education, counselling and referral services through community-based Needle and Syringe Programmes. Funding of $22.4 million over four years will ensure illicit drug users have access to advice about referral to treatment, advice regarding available health services, and information about Needle and Syringe Programmes, safe disposal of needles and syringes, and blood-borne virus transmission.

This measure will involve funding of $5.4 million in 2003-04, $5.5 million in 2004-05, $5.7 million in 2005-06 and $5.8 million in 2006-07. Funding for this measure is already included in the forward estimates.

National Illicit Drugs Strategy - continuation of funding for the Illicit Drug Diversion Initiative

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Health and Ageing - - - -

The Government will continue funding for this measure which supports the diversion of minor drug offenders, following assessment, into counselling and treatment aimed at keeping them out of the criminal justice system. These programmes have been established in all States and Territories and have proven to have a positive effect on participants.

This measure will involve funding of $215.9 million over four years. Provision for this funding has already been included in the forward estimates.

National Illicit Drugs Strategy - strengthening and supporting families coping with illicit drug use

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Family and Community Services - - - -

The Government will continue to fund this programme for an additional year while an evaluation of the benefits of the programme is completed. The programme was introduced in the 1999-2000 Budget as part of the Council of Australian Governments' National Illicit Drug Strategy. The programme aims to assist the families of young people at risk of, or coping with, illicit drug use.

The measure will involve funding of $3.2 million in 2003-04. Provision for this funding has already been included in the forward estimates.

National Illicit Drugs Strategy - National Schools Drug Education Strategy

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Education, Science and Training 1.8 - - -

The Government will continue to fund this programme in 2003-04 to build upon the progress achieved in school drug education programmes and to continue to foster the capacity of school communities to provide a safe and supportive school environment for all Australian school students.

Additional funding of $1.8 million in 2003-04 will fund the development of new Student at Risk and Parent Initiatives under the National Schools Drug Education Strategy. A national resource kit to be developed for the Parent Initiative will help parents talk to their children about drugs, and a Student at Risk Initiative resource kit will assist schools to identify students most at risk of drug-related harm.

Funding of $3.5 million in 2003-04 has already been included in the forward estimates, resulting in total funding of $5.3 million for the year.


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