| Publication: | ABC News |
|---|---|
| Date: | 2 August 2009 |
Federal Treasurer Wayne Swan has hinted at further cuts to the private health insurance rebate to raise extra money for Australia's health system.
The Government is examining a report that says it needs to inject billions of dollars into Australia's health system to keep pace with the growing demand for services.
In this year's Budget the Government announced it wanted to means test the private health insurance rebate, and Mr Swan has told Channel Nine there will be more tough decisions next year.
"I think you saw an example of how tough it's going to be with the Health and Hospitals Reform Commission's report this week," he said.
"It's not just about [spending more], it's about the sustainability of the health system and it's also about the ageing of our population.
"One of the areas in which there are very significant spending pressures as a consequence of the ageing of the population is in the health budget ... and when we go about responding to health reform that's one factor that we take into account.
"I think we have got to look at all areas in the budget to make sure that our spending is focused, it delivers the best bang for the buck and it sets this country up for the future."
Mr Swan refused to give details about where budget cuts would start, but described the move to means test insurance rebates as the start of structural reform.
"Means testing the private health insurance rebate ... was very important if we were going to put in place that very substantial increase in the aged pension," he said.
