Abbott scraps controversial $7 GP co-payment

Prime Minister Tony Abbott has scrapped the controversial $7 GP co-payment.

Children under 16, pensioners and veterans will now be exempt from the extra charge while everyone else face a voluntary $5 payment when seeing a doctor.

Mr Abbott told reporters today the measure had been initially introduced to combat the deficit left by the previous, Labor, government but he had stepped back from the policy after being repeatedly approached by his own MPs and members of the public.

Incentives to bulk bill concession card holders and children under 16 remain in place.

The new measures apply from July 2015.

Mr Abbott said the new package had significantly improved the government's co-payment measures, while at the same time maintaining the desired price signal.

"But I do want to stress ... bulk billing stays for young people and for pensioners, and the co-payment is at the option of the doctor," he told reporters in Canberra today.

The government announced plans for the co-payment in the May budget.

It was opposed by Labor, the Greens and crossbenchers in the Senate as well as doctors.