Billions set aside for health in budget update

The Mid-Year Economic and Fiscal Outlook provides targeted support for older Australians and those living in regional areas.

Health Minister Greg Hunt said the measure would cost the government $33.5 million and build on telehealth announced in the drought package. Picture: AAP

Health looms as a key election priority for the Morrison government, with billions of dollars set aside in the budget update that also provides targeted support for older Australians and those living in regional and remote areas.

The government has softened its stance on after-hours GP services and delayed other contentious decisions, but has yet to respond to a broader Medicare review.

Having pre-empted the MYEFO with the announcement of a $1.25 billion Community Health and Hospitals Program last week, the government has used the update to also promise $1.4bn for new listings on the Pharmaceutical Benefits Scheme. The PBS commitment comes after the government set aside $1bn in the budget for future listings.

The Coalition has a policy of funding drugs recommended by an expert panel. There is also a package of new measures, under the slogan Guaranteeing Medicare, including an extension of rebates to include general consultations by telehealth for patients in some rural areas.

Health Minister Greg Hunt said the measure would cost the government $33.5 million and build on telehealth announced in the drought package.