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Thursday, 25 November 1999
Page: 12693


Ms MACKLIN —My question is to the Minister for Health and Aged Care. Is the minister aware of the widespread alarm amongst doctors following the revelation that medical indemnity insurance premiums will rise by 10 per cent to meet the cost of the GST imposed on payouts to people affected by medical negligence? What steps has the minister taken to compensate the medical defence funds for the impact of the GST and ensure that there is no flow on from the increased premiums to larger gap charges by doctors? How can you claim that health will not be affected by the GST when such large increases will flow through directly as a result of the government's design and implementation of this unfair tax?


Dr WOOLDRIDGE (Health and Aged Care) —I thank the honourable member for her question. She obviously does not understand the GST, but that is not surprising. It is an input tax credit and doctors will get it back.