PM scrapes off policy barnacles

ABBOTT SCRAPES OFF THE BARNACLES

* HEALTH - The government has ditched plans for the unpopular $7 Medicare co-payment. Instead an optional co-payment will be introduced at the same time the Medicare rebate to doctors is reduced by $5.

It will be up to doctors to decide whether their patients make up the difference or bulk bill them.

* PAID PARENTAL LEAVE - Tony Abbott's signature policy will be revamped again over summer. It might include a means test that excludes women on salaries of more than $150,000. Savings will be directed into childcare.

* DEFENCE - The government has announced a plan to fix the troubled Air Warfare Destroyer project and shore up shipbuilding jobs for the long term. Defence Minister David Johnston has been under fire for saying he would not trust government-owned shipbuilder ASC to build a canoe.

* UNIVERSITIES - After the Senate rejected legislation to deregulate university fees, the government has moved to plan B. A new bill before parliament contains concessions promised to the Senate cross bench. The biggest will limit the interest rate on student loans to the consumer price index.