Health cost sparks campaign debate

As the federal election campaign enters its third week, attention is turning to who is better at managing health spending.

Leader of the Opposition Bill Shortenand West Australia Labor Opposition Leader Mark McGowan at a press conference in Perth. (AAP Image/Mick Tsikas) Source: AAP

Labor has accused the government of penny-pinching over Medicare, as Malcolm Turnbull and his health minister admit they will not lift a freeze on GP rebates until the budget allows.

The federal opposition put health on the election agenda when Bill Shorten pledged a Labor government would lift the freeze from next January at a cost of $2.4 billion over four years.

Health Minister Sussan Ley appeared to back the idea in principle when asked about it on ABC radio at the start of the third week of the campaign.

"I understand for doctors that the GP freeze has been difficult and I appreciate they're working with us," she said.

"I've said to doctors I want that freeze lifted as soon as possible, but I appreciate that Finance and Treasury aren't allowing me to do it just yet."

Campaigning in Western Australia on Monday, Mr Shorten seized on the comment saying it showed the coalition's policy was "sick".

"It's not just Labor that understands the importance of our policies on saving Medicare, on unfreezing the GP rebates, on keeping downward pressure on the cost of pharmaceutical prescriptions," Mr Shorten said.

"No less a person than Mr Turnbull's own minister for health has today said that she doesn't support the policies of the government and instead says she's been rolled by other people in the government."

Mr Turnbull told reporters on the NSW south coast the freeze would end "at some point".

"The question is, it will end when we judge it is affordable within the context of the health budget. That's all Sussan is saying. It's common sense."

The prime minister said budget savings had allowed the government to subsidise many important drugs and other health priorities.

Treasurer Scott Morrison said the government was committed to living within its means.

"The difference between the government and the Labor party is: all of our spending in this election is paid for by savings, not by higher taxes," he said.

The debate came as the latest Newspoll showed Labor maintaining a 51-49 two-party preferred lead over the coalition and Mr Turnbull's personal rating falling.

Mr Morrison said there was always going to be a "bit of coming together" as the election campaign began.

Labor appears to have found some budget savings in another policy area - rules that allow federal MPs and senators to claim all expenses on properties they own in Canberra as tax deductions.

Shadow treasurer Chris Bowen told reporters in Sydney the system did not live up to community expectations.

"It's clear in Bill's view and in Labor's view this needs to change going forward - we will make that change," Mr Bowen said.

Mr Turnbull said the independence of the pay tribunal and tax office should be respected, not undermined for partisan points.