Following months of campaigning from the Victorian Liberals and Nationals, The Allan Labor Government has scrapped its controversial and unfair health tax.
It is a significant backflip from Labor, who had consistently ignored healthcare professionals about the impact the tax would have on patients, GP clinics, and an already struggling healthcare system.
Nationals Member for Euroa Annabelle Cleeland, who is the Shadow Parliamentary Secretary for Health, said the long-overdue decision was a win for Victorians and for common sense.
“For months Labor ignored healthcare professionals about the significant impact their insidious Health Tax was having on both patients and our health system,” Ms Cleeland said.
“After speaking with our local GPs and healthcare professionals, it was clear this desperate and callous cash grab was going to prevent them from offering health outcomes effectively and affordably for our communities –something Labor would have recognised far earlier if not for their hubris.
“The scrapping of this tax is the right outcome for Victorian patients and GPs.”
Health industry experts warned the tax would put many practices out of business, end bulk billing, increase the cost of seeing a doctor by almost 30 per cent, and drive an additional two million patients a year through Victoria’s already overwhelmed emergency departments.
In October 2023, the Victorian Liberals and Nationals introduced a Private Members Bill in the Parliament to stop the Health Tax, and earlier this month announced they would scrap the tax should they be elected to Government.
Ms Cleeland said getting this tax scrapped was a great outcome, but there was still a lot of work to be done to improving regional Victoria’s healthcare crisis.
“Affordable healthcare for regional Victorians has been challenging enough without being financially penalised by yet another tax,” Ms Cleeland said.
“We’ve already seen $207 million cut from Public Health in this year’s budget, on top of millions cut from dental services, aged care, ambulance services, health workforce training, and maternal and child health.
“At the same time, we’re seeing forced amalgamations of our hospitals, delayed ambulance response times, out of control surgery and GP waitlists, and a general lack of resourcing.
“This is the real-world consequence of Labor’s mismanagement of our health system.”
Labor’s decision to scrap their health tax was announced on the same day polls showed declining support for the party and indicated that Labor would struggle to form a majority government should an election be held this month.
