ADIA is the peak business organisation representing manufacturers and suppliers of dental products. Our vision is for an industry that empowers oral health professionals to advance the health and wellbeing of all Australians...................... — ADIA Strategic Plan

Healthcare spending

2014 Budget — General health spending

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In addition to spending measures that specifically address government-funded dental and oral healthcare services, there are a number of other changes in the 2014 Australian Government budget affecting the health portfolio that are of interest to the dental industry. The Australian Government has prepared the following guide that overviews measures affecting the entire heath system:

2014 Australian Government Budget Resources —

Health portfolio budget summary [PDF]

In a measure that is expected to provide long-term support for Australian manufacturers of therapeutic products, the budget proposes that every dollar of savings from health expenditure reforms in this Budget will be invested in a new, capital-protected, Medical Research Future Fund until it reaches $20 billion.

Medicare —

Indexation of many payments and programmes will be temporarily paused, including the thresholds for the Medicare Levy Surcharge, Private Health Insurance Rebate and most Medicare Benefits Schedule fees.

From 1 July 2015, previously bulk-billed patients can expect to contribute $7 per visit towards the cost of standard GP consultations and out-of-hospital pathology and imaging services. For each $7 patient contribution, $5 will be reinvested in the new Medical Research Future Fund. This will come from reducing Medicare Benefits Schedule rebates for these services by $5. $2 will go to the provider.

For concessional patients and children under 16 years the contribution will be for the first 10 services each calendar year.

From 1 January 2015, increased costs of PBS medicines and Safety Net thresholds will keep the PBS sustainable, ensuring the Government can continue to provide access to new and innovative medicines.

From 1 July 2016, a new Medicare Safety Net will simplify existing safety nets for out-of-hospital services whilst continuing to protect vulnerable patients. The new Medicare Safety Net will have lower thresholds for most people. Safety net benefits, and fees that count towards safety net thresholds, will be capped.

With respect to private health insurance, indexation of the the Private Health Insurance Rebate will be suspended.

Personally controlled electronic health record —

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. The budgetary impact of this measure are as set out in the table below.

2013-14 2014-15 2015-16 2016-17 2017-18
...Department of Health $118.8Mil
...Department of Human Services $20.8Mil
...Department of Veterans Affairs $0.1Mil
...Total — Expense $139.6Mil
...Related Capital (Dept. Human Serv.) $1.0Mil —.

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Health Workforce Australia —

The Government will achieve savings of $142.0 million over five years by abolishing Health Workforce Australia (HWA) 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 HWA, and redirecting uncommitted funds in the Health Workforce Fund. This measure delivers on the Government's election commitment. The budgetary impact of this measure are as set out in the table below and in accordance with convention a saving / reduction is denoted as negative (-) expenditure

2013-14 2014-15 2015-16 2016-17 2017-18
...Department of Health $5.1Mil $118.0Mil $169.9Mil $116.4Mil $190.5Mil
...Health Workforce Australia -$211.5Mil -$214.1Mil -$216.8Mil -$219.5Mil
...Total — Expense $5.1Mil -$23.6Mil -$44.2Mil -$40.3Mil -$29.0Mil

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Following the budget ADIA met meet with Ministers and senior departmental staff in order to better understand how individual policy initiatives will impact upon the interests of the dental industry.

This update was issued on 1 May 2014 and please note that changes in circumstances after the publication of material or information may impact upon its accuracy and also change regulatory compliance obligations. The statements, regulatory and technical information contained herein are believed to be accurate and are provided for information purposes only. Readers are responsible for assessing its relevance and verifying the accuracy of the content. To the fullest extent permitted by law, ADIA will not be liable for any loss, damage, cost or expense incurred in relation to or arising as a result of relying on the information presented here.

Member Engagement —

ADIA provides leadership, strategy, advocacy and support. Our members set our agenda, fund our activities and directly benefit from the results. With respect to the Association's work to ensure that the initiatives within the 2014 Australian Government budget support the dental industry, the team in the ADIA national office receive advice and guidance from members serving on the ADIA-BAC Business Affairs Committee.

Further Information —

To keep up to date with how ADIA is working to ensure that the Australian Government budget supports the dental industry, subscribe to the Twitter feed @AusDental or follow us on Facebook at www.facebook.com/dental.industry. Alternatively, you can contact the Association via email at canberra@adia.org.au or by telephone on 1300 943 094.

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This information is available for your use under a Creative Commons Attribution 3.0 Australia licence, with the exception of the ADIA logo, other images and where otherwise stated.

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