Co-payment ditched as Abbott clears decks

Most Australians face the prospect of paying more to visit their doctor, despite the federal government ditching its plan for a $7 GP co-payment.

Instead, it will be up to doctors to decide whether to impose an optional $5 co-payment on their bulk-billed patients to make up for a reduction in the rebate they receive from Medicare.

Patients who are not bulk-billed will have their rebate reduced by $5 as well.

Pensioners and other concession card holders, children under 16 and those living in aged-care facilities will be exempt from the reductions.

Labor slammed the modified plan as a back-door way of introducing a co-payment, while the Greens accused the government of forcing doctors to do its "dirty work".

Prime Minister Tony Abbott, who announced the change on Tuesday, said it was "pretty obvious" the government's initial plan needed reworking.

"I am absolutely convinced that the package that we have brought forward today is a better package," he told reporters in Canberra.

He also announced the government was addressing what he labelled "six-minute sausage machine" medicine - a move welcomed by the Public Health Association of Australia.

Consultations of less than 10 minutes will attract a Medicare rebate of $11.95 only, and a rebate of $32.05 will apply for standard consultations between 10 and 20 minutes.

The rebate changes do not need parliamentary approval, but they could be disallowed by the Senate if Labor and the Greens get sufficient support from the crossbench.

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Co-payment ditched as Abbott clears decks