Abbott attempts to knock off budget barnacles, ends up taking on water over $7 GP co-payment

The Abbott Government is sending mixed messages over the future of its GP co-payment, with the Health Minister saying it will be replaced, and the Treasurer saying it will remain in its proposed form.

Federal Health Minister Peter Dutton has denied the $7 GP co-payment will be scrapped completely, with "different options" already being considered to replace it.

"We are not ruling in or out different options that might be available to the government and we are determined to send a price signal to make Medicare sustainable," he said.

Mr Dutton refused to explain what those "different options" were.

Senate leader Eric Abetz also confirmed the GP co-payment "remains our policy" but also would not explain how the policy would evolve.

The cost-cutting measure, which has not yet been introduced to Parliament as legislation, was widely condemned as discriminating against lower-income people when outlined in the May budget.

Treasuer Joe Hockey gave a somewhat different answer to his party colleagues today, saying the GP co-payment policy would remain in its current state and he still hopes to get it through the Parliament.

"We will take it when we are able to take it. There's lot of work before the Parliament at the moment," he said.

Mr Hockey said he would not speculate on suggestions the GP co-payment could be modified.

"We have an obligation to strengthen Medicare and we have an obligation to do what we can to address the problems that were left to us by the Labor Party in government," he said.

Prime Minister Tony Abbott would not be drawn on the future of the controversial policy overnight, but reports by the ABC and Fairfax Media said he has privately conceded it would never make it through the senate.

Using a nautical analogy earlier this week, Mr Abbott vowed to knock a few "barnacles" off the Government ship before the year's end, prompting speculation he was ready to dump some unpopular policies.

Labor leader Bill Shorten addressed the National Press Club yesterday, continuing Mr Abbott's nautical theme.

"Every time they scrape off a barnacle, they just reveal another hole in the hull," he said.

Opposition health spokeswoman Catherine King said she is concerned the government will implement the co-payment through regulation rather than legislation.

"What the government can of course do by regulation is reduce the fee the government pays to doctors via the Medicare Benefit Schedule ... and we're been calling on them to rule that out," she said.

Associate Professor Brian Owler from the Australian Medical Association welcomed the back-down, labelling the co-payment "bad health policy" and warned the government against introducing other measures, such as increasing the cost of medicines.

The paid parental leave scheme, which is the centrepiece of the May budget, is also thought to be in the firing line.

Mr Abbott's $5.5 billion signature policy has already being altered, reducing the maximum possible payment from $75,000 to $50,000.