A decade after I came from behind to win my Olympic gold medal in the pool at the Seoul 1988 Olympics, it was a chilly Winter Olympic year - not only for the athletes competing in Nagano, Japan - but also the 1998 federal election in which Prime Minister John Howard also came from behind to snatch victory in the GST race. or signup to continue reading The Coalition's position atop the podium saw the conception of a consumption tax that had been proposed for a long time by both sides of politics. On December 2, 1998, treasurer Peter Costello stood up in the House of Representatives to deliver the second reading speech of the .
Making health services GST exempt was central to the election campaign and subsequent legislation. Costello was clear about the government's intention to treat health in the tax reform. "In its tax plan, the government proposed that virtually all health, education and child-care services, charitable activities and religious services would be GST free," he told Parliament.
"On October 27 a tax consultative committee was established and charged with the task of making recommendations on the appropriate scope of four key GST-free areas - health, education, religious services and the non-commercial activities of charities. "They recommended GST-free treatment for a wide range of medical and allied health services." The new bill included GST-free status for 21 health services, including physiotherapy, dental, optometry and acupuncture as well as herbal medicine and naturopathy.
In 1998, exercise physiology was an emerging science. Now it is a proven health treatment to prevent, manage and reverse a broad range of chronic conditions including diabetes, cancer, cardiovascular diseases, obesity and mental health. Conversely, the positive clinical services also help veterans' rehabilitation and families who require vital care for those living with a disability.
The recent House of Representatives Standing Committee on Health, Aged Care and Sport chaired by Dr Mike Freelander MP released a widely acclaimed report last month, . Diabetes is one of Australia's most challenging chronic diseases and disproportionately impacts low socio-economic, remote Australians, First Nations and some migrant groups. The report is clear that exercise and physical activity is critical to manage diabetes and particularly Type 2.
In collaboration with GPs, accredited exercise physiologists design individual and community activity programs to prevent, treat and reverse diabetes. Every day, our members, accredited university-trained exercise physiologists, are on the frontline supporting patients who are undergoing surgery, receiving cancer treatment, managing debilitating mental health conditions, tackling weight disorders and ameliorating cardiovascular illnesses. The cost of health in Australia is ballooning - by around 7 per cent annually.
And all Australians know this by the hit on their hip pocket as cost of living skyrockets. Much of this is attributed to chronic diseases and mental health care. We know one of the most cost-effective health services is professionally delivered exercise programs and effective physical activity prescribed by accredited exercise physiologists.
This will keep Australians out of hospital for longer, avoid more expensive pharmaceutical responses, reinforce clinical interventions and improve wellbeing. As treasurer Costello and Parliament recognised a quarter of century ago, the Goods and Services Tax was never designed to be applied to effective health services. Parliament knew health care had to be affordable and equitable across our society.
It is time to correct this anomaly in the tax system and make exercise physiology more accessible and the lowest cost possible for vulnerable Australians. All state and territory treasurers have recognised this and have agreed to this reform. They know the small loss of GST revenue will be greatly outweighed with lower demands on the public health system and improved health outcomes.
It just needs a federal government and treasurer with that same foresight and will to push this tax reform across the finish line in this term of Parliament. As the Olympics conclude for another four years, I am reminded of the thrill of competing in this arena and just how much Australia punches above its weight in exercise and sport. Now is the time for our government to make exercise physiology GST free for the best possible health and wellbeing outcomes as was intended 25 years ago.
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