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Budget challenges Tony Abbott's claim that states have time before cuts bite Budget challenges Tony Abbott's claim that states have time before cuts bite
(4 months later)
The prime minister, Tony Abbott, claimed on Sunday that he had plenty of time to work out his funding stoush with the states because “we’re not talking about next week or next month or even next year; we are talking about changes in three years' time”.The prime minister, Tony Abbott, claimed on Sunday that he had plenty of time to work out his funding stoush with the states because “we’re not talking about next week or next month or even next year; we are talking about changes in three years' time”.
The premiers appeared truly gobsmacked by this statement, calling it completely wrong and pointing out that the budget axed scores of national partnership agreements that would start to cut into their funding from 1 July.The premiers appeared truly gobsmacked by this statement, calling it completely wrong and pointing out that the budget axed scores of national partnership agreements that would start to cut into their funding from 1 July.
In their communique they “express grave concern that, contrary to the prime minister’s remarks today, there are immediate impacts on frontline services and the cost of living for Australians”.In their communique they “express grave concern that, contrary to the prime minister’s remarks today, there are immediate impacts on frontline services and the cost of living for Australians”.
“For example, from 1 July 2014, there will be a reduction in funding for 1,200 hospital beds across Australia and the withdrawal of over $300m per year from concessions for pensioners and seniors,” it said.“For example, from 1 July 2014, there will be a reduction in funding for 1,200 hospital beds across Australia and the withdrawal of over $300m per year from concessions for pensioners and seniors,” it said.
A quick perusal of the budget documents reveals almost $3bn worth of funding agreements with state governments in the health portfolio alone that have been cut, deferred or abandoned – with the cuts starting this year or next year.A quick perusal of the budget documents reveals almost $3bn worth of funding agreements with state governments in the health portfolio alone that have been cut, deferred or abandoned – with the cuts starting this year or next year.
These cuts are on top of the $80bn in long-term funding cut out of health and education, and on top of savings from the new $7 Medicare co-payment (which could force people to seek help in state-run emergency departments instead of seeing a general practitioner); the additional $5 co-payment for medicines; the pausing of indexation for medical benefit schedule fees and other budget savings. As well, many partnership agreements have been axed in other portfolios. These cuts are on top of the $80bn in long-term funding cut out of health and education, and on top of savings from the new $7 Medicare co-payment (which could force people to seek help in state-run emergency departments instead of seeing a general practitioner); the additional $5 co-payment for medicines; the pausing of indexation for medical benefit schedule fees and other budget savings. As well, many partnership agreements have been axed in other portfolios.
The health agreements abandoned or deferred include:The health agreements abandoned or deferred include:
• The national health reform agreement, signed by all states and the commonwealth in 2011. (This cuts $1.8bn from public hospital funding, starting this year. Money to be put into the medical research future fund.)• The national health reform agreement, signed by all states and the commonwealth in 2011. (This cuts $1.8bn from public hospital funding, starting this year. Money to be put into the medical research future fund.)
• The dental flexible grants program. (Cuts $229m, starting this year, that was to help dentists set up in outer metropolitan and rural areas. Money goes to the medical research future fund.) • The dental flexible grants program. (Cuts $229m, starting this year, that was to help dentists set up in outer metropolitan and rural areas. Money goes to the medical research future fund.)
• Adult public dental services. (Cuts $390m, starting this year, by deferring a national partnership agreement, signed with the states, which was supposed to help clear the 400,000-strong waiting lists for public dental care. Money goes to the medical research future fund.)• Adult public dental services. (Cuts $390m, starting this year, by deferring a national partnership agreement, signed with the states, which was supposed to help clear the 400,000-strong waiting lists for public dental care. Money goes to the medical research future fund.)
• Improving public hospital services. (Cuts $201m, starting next year, from money that was supposed to help the states reduce waiting times at public hospitals. Money goes to the medical research future fund.)• Improving public hospital services. (Cuts $201m, starting next year, from money that was supposed to help the states reduce waiting times at public hospitals. Money goes to the medical research future fund.)
• National partnership on preventive health. (Cuts $367m, starting this year, that was supposed to fund preventive health education programs, such as anti-smoking campaigns. The government is also saving $6m by abolishing the national preventive health agency. Money from both goes to the medical research future fund.)• National partnership on preventive health. (Cuts $367m, starting this year, that was supposed to fund preventive health education programs, such as anti-smoking campaigns. The government is also saving $6m by abolishing the national preventive health agency. Money from both goes to the medical research future fund.)