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

2016 Budget — General (Non-dental) healthcare spending

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The 2016 Australian Government Budget makes significant ongoing commitment to the nation's healthcare system and the following sets out some selected initiatives that are of interest to the dental industry.

Enhanced Medicare Compliance Program —

The Government will achieve efficiencies of $66.2 million over four years from 2016‑17 through enhancements to the Medicare compliance program. Efficiencies will be achieved by introducing an advanced data analytics capability to better target providers who make Medicare claims that are inconsistent with existing rules and introducing changes to improve low rates of debt recovery from providers. 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.

2015-16 2016-17 2017-18 2018-19 2019-20
...Department of Health - Expenditure
$12.0Mil -$1.0Mil -$3.6Mil -$6.2Mil
...Department of Health - Revenue $13.0Mil $15.6Mil $18.2Mil $20.8Mil

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

Medicare Benefits Schedule Indexation Pause —

The Government will achieve efficiencies of $66.2 million over four years from 2016‑17 through enhancements to the Medicare compliance program. Efficiencies will be achieved by introducing an advanced data analytics capability to better target providers who make Medicare claims that are inconsistent with existing rules and introducing changes to improve low rates of debt recovery from providers. 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.

2015-16 2016-17 2017-18 2018-19 2019-20
...Department of Veterans' Affairs -$9.3Mil -$18.2Mil
...Department of Health -$292.2Mil -$605.6Mil
...Total — Expense -$301.5Mil -$623.8Mil

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Private Health Insurance and Prostheses Committees —

The Government will provide $2.2 million over three years from 1 July 2016 to establish the Private Health Sector Reform Committee to provide advice on the design and implementation of private health insurance reforms, with the aim of reducing the cost and improving the value of private health insurance to consumers.

The Government will also expand the Prostheses List Advisory Committee to include additional expertise to further develop and advise on the implementation of prostheses reform, with the costs of this component to be met from within the existing resources of the Department of Health.

This update was issued on 3 May 2016 and please note that changes in circumstances after the publication of material or information may impact upon its accuracy (including passage of the supporting legislation through the parliament) and also compliance obligations. It is recommended that expert advice be sought before taking action based upon 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 2016 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.


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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