Medicare Battle: Albanese Calls Dutton’s $9 Billion Plan ‘Pure Politics’

On Feb. 23, Dutton announced a $9 billion investment in Medicare, matching Labor’s proposed $8.5 billion plan.
Medicare Battle: Albanese Calls Dutton’s $9 Billion Plan ‘Pure Politics’
The Medicare logo is seen in Sydney, Australia, on May 23, 2016. Brendon Thorne/Getty Images
Naziya Alvi Rahman
Updated:
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The Medicare debate has once again taken centre stage in the lead-up to the Australian federal election, with Prime Minister Anthony Albanese dismissing Opposition Leader Peter Dutton’s latest pledge as mere political manoeuvring.

On Feb. 23, Dutton announced a $9 billion (US$5.7 billion) investment in Medicare, matching Labor’s $8.5 billion commitment.

“What we saw from the opposition yesterday was just pure politics. It’s what they did prior to 2013, and then the 2014 Budget papers are very clear about $50 billion of cuts to hospitals,” Albanese said on Feb. 24.

He further criticised the Coalition’s past approach to healthcare, recalling their attempts to introduce a GP co-payment, increase pharmaceutical costs, and impose fees on emergency department visits.

Albanese pointed out that Dutton, during his tenure as health minister, was once voted the worst health minister in history by the Australian Medical Association (AMA).

“The thing with Peter Dutton is that you get thought bubbles,” Albanese added.

Prime Minister Anthony Albanese speaks to media during a doorstop event in the Gympie Region in central Queensland in Australia on Jan. 6, 2025. (AAP Image/Russell Freeman)
Prime Minister Anthony Albanese speaks to media during a doorstop event in the Gympie Region in central Queensland in Australia on Jan. 6, 2025. AAP Image/Russell Freeman

Coalition Targets Bulk Billing Decline

In response, the Coalition argued that under Labor, bulk billing has plummeted, making it more difficult and expensive for Australians to see a doctor.

They said Australians are now paying 45 percent more for GP visits, with bulk billing rates falling from 88 percent under the Coalition to 77 percent under Labor.

“This has had a serious impact on Australians’ access to healthcare at a time when they can least afford it,” Dutton said.

He added that there has been a significant drop in bulk billed GP visits with 40 million fewer consultations in the past financial year compared to the Coalition’s last year in office.

He further claimed that this decline has forced 1.5 million Australians to avoid seeing a doctor in 2023-24, leading to increased pressure on hospitals.

Dutton Matches Labor’s Medicare Pledge

To address the healthcare crisis, the Coalition has pledged to match Labor’s $8.5 billion Medicare investment, vowing to restore bulk billing to its previous levels.

This commitment builds on their previously announced $500 million funding boost for Medicare-supported mental health services, which they argue the Albanese government slashed.

“The Coalition led the way with our $400 million plan to grow a strong pipeline of homegrown GPs, providing junior doctors with financial incentives and training support,” Dutton said in a statement on Feb. 23.

He also highlighted his record in government, which included a 16 percent increase in hospital funding and the establishment of the $22 billion Medical Research Future Fund, designed to support medical breakthroughs and innovation.

When asked whether this commitment was at odds with his stance on financial responsibility, Dutton said, “It’s a big amount of money, but we’ve identified the offset, the savings. Labor hasn’t done that, and I think it’s a fair question for the prime minister as to where the money is going to come from.”

Dutton said these investments need strong economic management and argued only the Coalition could deliver sustainable healthcare funding.

Labor Defends Medicare Record

Health Minister Mark Butler has rejected the Coalition’s criticisms, saying the government’s healthcare policies have been well-planned and are delivering results.

According to Butler, Medicare has seen significant improvements, particularly in bulk billing for pensioners and concession card holders.

“We’ve seen a big rebound in bulk billing of pensioners, concession card holders, and we’re very confident we’ll see that for middle Australia as well,” Butler stated.

He added that nearly 5,000 medical practices are expected to transition to fully bulk billing, significantly improving access to affordable healthcare.

“We’ve modelled this really carefully, and we’re confident that almost 5,000 practices will be better off if they shift to being fully bulk billing. So not 100 [percent], not 90 percent, but closer to 100 percent bulk billing.”

Butler also defended Labor’s Medicare rebate increases, arguing that the Albanese government has delivered the three biggest annual hikes to the rebate in the past three decades.

“In three decades since Paul Keating was prime minister, leaving aside bulk billing incentives, we’ve increased Medicare income for doctors by more in three years than the former government did in nine because, of course, Peter Dutton froze Medicare funding,” he said.

With both major parties making Medicare a key battleground, it remains to be seen whether their competing healthcare policy messaging will become a deciding factor in the election.