These two charts show what the Joe Hockey and the Abbott Government hope to achieve as part of a staggering $80 billion in savings from the education and health sectors over the next 10 years.
And judging by these charts the states expected to find an additional $15 billion for hospitals by 2025 under a new funding deal, while students will be expected to fill some of the $5 billion funding gap in education.
The long and drastic list of savings measures hits the less well off including pensioners, concession card holders and disability support pension recipients, who will be expected to pay more to access health care.
The Abbott Government hopes to save $1.8 billion over four years by pushing the growing costs of hospital funding back onto the states, the Budget reveals. The Commonwealth plans to tear up the 2011 health reform agreement and 2007 public hospital funding arrangements, which saw any increased expenditure split 50/50 between state and federal governments. Instead it will move to a CPI and population growth model for any additional funds.
A range of health programs have been axed, with a lot of the funds redirected to the headline $20 billion Medical Research Future Fund.
It comes on top of $3.5 billion in savings over five years from introducing a $7 Medicare co-payment for doctor’s visits, with billions more in savings to come from changes to the PBS and Medicare.
Here’s a list of the other key cuts and savings.
- Pharmaceutical Benefits Scheme (PBS) co-payments and safety net thresholds will increase by $5 (from $37.70 to $42.70) and for concessional patients by 80 cents (to $6.90) in 2015. PBS safety net thresholds will the increase by 10 per cent annually. The saving is $1.3 billion.
- $1.7 billion saved by pausing indexation on some Medicare fees for two years and the income thresholds for the Medicare Levy Surcharge and Private Health Insurance Rebate for three years from 1 July 2015.
- A new Medicare safety net, beginning in 2016, will set thresholds of $400 for concessional singles and families, $700 for non-concessional FTB-A families and singles, and $1000 for non-concessional families who don’t receive FTB-A, saving $266.7 million.
- $115.4 million is saved by abolishing GP Education and Training Limited, shifting its functions into Health, and ceasing the Pre-vocational GP Placements Scheme.
- $89.6 million over four years by reducing the Medicare benefit for optometry services from 85 per cent to 80 per cent in 2015. The charging cap on optometrists will be lifted too.
- $390 million saved by deferring the National Partnership Agreement for adult public dental services until July 2015.
- $201 million saved by ceasing reward funding to States and Territories under the National Partnership Agreement on Improving Public Hospital Services.
- $367.9 million saved by axing the National Partnership Agreement on Preventive Health
- $142.0 million saved over five years by abolishing Health Workforce Australia and shifting its functions into the Dept of Health and cutting expansion of the Clinical Training Funding Programme.
- $53.8 million saved by deferring establishing 13 Partners in Recovery organisations for two years. The program helps people with severe and persistent mental illness and complex support needs.
- $2.9 million by axing the National Tobacco Campaign. Dept of Health to develop online and social media campaign.
- The Australian National Preventive Health Agency is abolished, saving $6.4 million.
- $9.9 million saved by axing funding for the nursing and allied health scholarships in Tasmania.
- $2.3 million cut in contribution to the World Health Organisation.
- $15.2 million saved over three years axing Charles Sturt University’s dental and oral health clinic developments
- $229 million saved over 4 years by axing the Dental Flexible Grants Programme.
- $197.1 million saved over three years by stopping indexation from health portfolio Flexible Funds and reducing uncommitted funds.
- $14.4 million saved over 5 years by axing the Diagnostic Imaging Quality Programme
- $4.4 million saved over five years by killing off four grant programmes including the the Australian Community Food Safety Campaign and Outreach Support Services for Criminalised Women.
- $22.8 million saved by moving some functions from the Australian Sports Commission to the Department of Health
- $87.1 million will be saved over 3 years by cutting an incentive program for graduates to take up work in regional locations of need.
- The threshold on Higher Education Loan Program (HELP) will drop by 10%, to $50,638 in 2016, at a repayment rate of 2%, saving $3.2 billion over 4 years.
- Australian Research Council funding will be cut by 3.25%, saving $74.9 million over three years.
- ANU’s HC Combs Policy Forum will be cut, saving $6.4 million.
- Higher education reward funding will be cut, saving $121.1 million over 5 years.
- A cut of $173.7 million over 3 years to the Research Training Scheme from 2016, with tertiary education providers introducing student contributions for higher degrees – up to $3900 for high cost courses and $1700 for low cost ones.
- Australian Baccalaureate development is ended, saving $9.6 million.
- Funding to the Australia Institute for Teaching and School Leadership will be reduced, saving $19.9 million over five years.
- The Better Schools Centre for Quality Teaching and Learning will end, saving $21 over 5 years.
- Tightened eligibility criteria for the child care providers to access the community support program will save $157.1 million over 3 years.
- $39.3 million taken from existing child care programs, including $14.7 million from Child Care Early Learning Projects and $12 million from the Professional Support Programme, redirected to other child care support programs
- $59.7 million saved over five years by reducing uncommitted funding for various education grant programs
- $202.8 million saved over three years by changing the indexation system for Australian Research Council Act and the Higher Education Support Act.
- $29.8 million saved over four years by cancelling the Improving Educational Outcomes program
- $38.4 million saved by cutting the Online Diagnostic Tools Programme
- $31.1 million saved by reducing funding for Tertiary Education Quality and Standards Agency