ANNUAL REPORT 2015

AUSTRALIAN MEDICAL ASSOCIATION

ANNUAL REPORT 2015

Australian Medical Association Limited

Strategic Plan 2015-2017

Mission

Leading Australia’s Doctors - Promoting Australia’s Health

Strategic Objectives

Leading

on advocacy

Growing

and valuing

membership

Ensuring

nancial

security and

flexibility

Organisational

capability

Contents

Editor

John Flannery, Federal AMA

Sub Editor:

Adrian Rollins, Federal AMA

Maria Hawthorne, Federal AMA

Production Coordinator:

Kirsty Waterford, Federal AMA

Graphic Design:

Streamline Creative, Canberra

PRESIDENT’S REPORT ....................................................................................4

SECRETARY GENERAL’S REPORT ............................................................6

AMA BOARD .......................................................................................................8

AMA FEDERAL COUNCIL .........................................................................10

HEALTH SNAPSHOT OF AUSTRALIA .................................................12

BY THE NUMBERS ........................................................................................14

YEAR IN REVIEW .............................................................................................15

FINANCIAL REPORT .....................................................................................23

FINANCIAL REPORT – NOTES .................................................................35

INDEPENDENT AUDIT REPORT ..............................................................68

AMA COMMITTEE REPORTS & LISTS .................................................70

PUBLIC HEALTH REPORT ........................................................................... 95

Australian Medical Association Limited

Strategic Plan 2015-2017

Mission

Leading Australia’s Doctors - Promoting Australia’s Health

Strategic Objectives

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

Defending, promoting, and enhancing the best interests of doctors and patients

This year was another period of high-level and high-speed activity, advocacy, achievement, and advancement

for the AMA – on many fronts.

The year began very much in the same vein as 2014 ended, with health policy and politics centred on the

Government’s controversial and contentious co-payment policies, which in 2015 entailed a $5 cut to the

Medicare patient rebate (a co-payment by stealth), a freeze to the Medicare rebate, and changes to Level A and

B GP consultations.

The year also began with a change of Health Minister, with Sussan Ley taking over from Peter Dutton, who

moved to Immigration. The AMA’s relationship with Minister Ley started on good terms and, even throughout

occasional tumultuous times, a strong transparent relationship remained in place at year’s end.

It was Minister Ley’s job to take the heat out of the co-payment debate – to consult and to keep things calm. It

worked. It was not long before the Government’s co-payment plans were gone – dead, buried, cremated.

Having worked tirelessly for this outcome, the AMA then called on the Government to shift its health priorities

to chronic disease management, public hospital funding, Commonwealth/State relations, prevention, and

medical training.

We stressed to the Government and the community that there was no health funding crisis facing Australia, as

claimed by some in the Government and some commentators.

The foundations of the health system were sound. Health spending was not out of control. Our health system

was, and is, the envy of the world.

It is not perfect, but the foundations – the balance between public and private, the deﬁned roles for the

Commonwealth and the States, high life expectancy, and good health outcomes – continue to underpin a

healthy nation.

The problem for the Government throughout 2015 was that the damage from the 2014 Budget would not go

away. The quest for signiﬁcant savings in the health budget had come to a sudden halt with the demise of the

co-payment.

A change of strategy came in the 2015 Budget with the announcement of the Review of the Medicare Beneﬁts

Schedule (MBS) and the Primary Health Care Review.

While welcoming the reviews and oﬀering willing AMA participation, we let it be known from the beginning

that the AMA would not support a process that was primarily about cost cutting and Budget savings.

Despite assurances from the Minister, all the rhetoric around the reviews was about removing items, not

introducing new items as well, as had been agreed at the outset.

There was unanimity around building a modern MBS that reﬂects modern medical practice. That unanimity was

frayed by the end of the year, as we waited for preliminary reports from both reviews.

President’s Report

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

In October, the Minister announced a review of the private health insurance sector. This came after months of

inappropriate behaviour by some funds in their negotiations with private hospitals, and questions being raised

about the value of many private health policies. The emergence of ‘junk policies’, where patients discovered they

were not covered for care in a private hospital, added further impetus for the review.

Meanwhile, the private health funds continued pushing for a greater role in primary care

Then, in November, the Government released its long-delayed response to the mental health review. This

virtually amounted to the Government allocating funding packages to Primary Health Networks to be

distributed to various care providers and services at the local level.

There is still scant detail, and only a small number of PHNs operating at an eﬃcient level, so question marks

remain over this strategy, especially given the lack of commitment to a key role for GPs.

But the AMA advocacy and policy proﬁle was much broader throughout the year.

We launched the AMA

Pharmacist in General Practice Incentive Program (PGPIP)

, our plan to have non-

dispensing pharmacists part of the GP team.

We released the

Community Residency Program for Junior Medical Oﬃcers (JMOs)

, the AMA

Guide to 10

Minimum Standards for Medical Forms

, we co-launched the report,

Climate Change challenges to health: Risks

and Opportunities

, with the Australian Academy of Science, and we co-launched the

Avoid the crash, Avoid the

trauma

road safety campaign.

We launched new or updated AMA Position Statements on Palliative Care, Residential Aged Care, Methamphetamine,

Combat Sports, Climate Change and Human Health, Aboriginal and Torres Strait Islander Health, Sexual Harassment in

the Medical Workplace, Workplace Bullying and Harassment, Medical Graduates, Primary Health Networks (PHNs), the

Medical Home, Tobacco Smoking and E-cigarettes, and the Health Care of Asylum Seekers.

The AMA Indigenous Health Report Card was warmly received by all stakeholders, and was broadly publicised in

the media.

Our Public Hospital Report Card set the political agenda on hospital funding.

AMA advocacy brought an end to proposed Government changes to the Medicare Safety Net.

Our leaders and grassroots members spoke out in support of proper health care and compassion for asylum

seekers, especially children in detention.

Importantly, the AMA played a leading role in the medical profession’s examination of bullying and harassment

in the profession and in medical workplaces, and this work is ongoing.

There have also been changes with AMA governance arrangements, which are detailed in the Secretary

General’s report.

As I approach my ﬁnal months as AMA President, I thank my Vice President, Federal Council, Board, and Secretariat

staﬀ for working as a team to keep the AMA at the forefront of medico-political advocacy in Australia.

And I thank all AMA members for your feedback, your ideas, your energy, and your dedication to your patients,

your peers, and the profession. You make us strong.

There will be a Federal Election in 2016. The AMA will be watching things very closely, and we will be standing

up for what is best for doctors, their patients, and the community.

Professor Brian Owler

President

AUSTRALIAN MEDICAL ASSOCIATION – PRESIDENT’S REPORT

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

The year started with a storm over the Government’s proposed changes to Medicare billing, which had

been announced late in 2014, and followed rapidly by the appointment of a new Minister, Sussan Ley,

to calm the rising tide of anger among doctors and their patients. This set the theme for the year, with

multiple reviews announced by the new Minister for Health but no overarching vision for health policy.

At the end of the year, the AMA was watching with caution the review into MBS services, the outcomes of

the review of primary health care, the responses to the review of mental health, and the review of private

health insurance. Underlying tensions remain within the health portfolio with the Government looking to

modernise aspects of health policy, but also seeking to identify and deliver savings. These will play out as

the nation heads toward the 2016 Federal Election.

Public health issues have continued to be of considerable interest to members during 2015, with

members always willing to share their views with the AMA. During the year, member input was sought

when the AMA reviewed its Position Statement on the impacts of climate change on human health. This

was a good example where direct member consultation on a controversial but critical issue improved the

ﬁnal product.

In 2015, for the ﬁrst time a National Conference was held without an AMA leadership election. The

consensus of participants was that the absence of an election added to the collegiality of the event. The

secretariat received many suggestions on approaches that might be taken to National Conference in the

alternate, non-election year.

Federal Council has embraced the changed organisational structure with governance matters now

managed by the Board, leaving Federal Council to focus on policy matters. The Chair of Federal Council,

Dr Beverley Rowbotham, has encouraged broader contribution by members of Federal Council by

including two policy-focused discussions at each meeting of the Council. These have ranged across the

Federal Government’s review agenda, the value of private health insurance, the challenges for the medical

workforce, and more.

While the standing Councils and Committees of Federal Council continue to provide a solid foundation

for the development of position statements for the AMA, more working groups have been used during

the year to formulate rapid responses to current issues. These have included working groups to respond

to the Federal Government’s strategy on methamphetamines, the review of the climate change position

statement, and formulation of policies on end of life care.

During the year, the Federal Council established a working group to review member representation on

the Council and as delegates to National Conference. Federal Council accepted the recommendations of

the working group, which were subsequently endorsed by the Board. The result is that Practice Groups

replace Special Interest Groups, with two new groups added in 2015 – Rural Doctors and Private Specialist

Practice. From 2017, the Practice Groups will nominate representatives to National Conference in addition

to nominees of the State and Territory AMAs. Some minor amendments to the Constitution will be

required at the 2016 Annual General Meeting.

Secretary General’s Report

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

A development in 2015 of considerable importance to the medical profession was the establishment of

an AMA subsidiary, Doctors Health Services Pty Limited. With funding from the Medical Board of Australia

and the Australian Health Practitioner Regulation Agency, the company will coordinate the consistent

delivery of health services to doctors and medical students across the country.

Another important development during 2015 was the formalisation of a Memorandum of Understanding

with the Australian Medical Students’ Association under which the AMA provides ongoing operational

support, including appointment of an Executive Oﬃcer based within the AMA Secretariat. The medical

students of today will be the AMA members of the future and the relationship supports early familiarity

with the AMA.

At an operational level, 2015 has been a year of laying the foundations for future growth. A more eﬃcient

structure has been put in place for shared services functions within the AMA Group – shared information

technology systems and staﬀ, a shared ﬁnance team, and a Group human resources function. The

restructure of the ﬁnance team has been supported by the transition to a new ﬁnance system, to be

followed in 2016 with a new HR management system across the Group.

A high point in 2015 was the launch of the AMA’s CPD tracker, which is freely available to members, and

which supports reporting against the CPD requirements of every College. Online learning will be available

through the doctorportal platform, with an emphasis on building learning content in 2016.

Following the re-launch of the AMA website in late 2014, several State AMAs now also have a home as

subsidiary sites on the main site.

In 2016, there will be a major upgrade to the national member register. As the upgrade rolls out, the

AMA will be reﬁning the information it collects from members to support more streamlined member

communications.

Staﬀ changes during 2015 have introduced new skills and experience into the Secretariat, strengthening

the AMA’s capacity to undertake advocacy on behalf of members, and provide members with resources

and information to support their practices.

I would like to thank the President and Vice President and the members of the Board and Federal Council,

in particular the Chairs of each – Dr Elizabeth Feeney and Dr Beverley Rowbotham – for their commitment

and support during 2015. I also thank the staﬀ of the AMA Secretariat for their energy and passion for their

work in supporting our members.

Anne Trimmer

Secretary General

AUSTRALIAN MEDICAL ASSOCIATION – SECRETARY GENERAL’S REPORT

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

The AMA has had a successful year in pursuing the strategic objectives adopted by the Board in late 2014.

These continue to serve the company well with a mission of

Leading Australia’s Doctors – Promoting

Australia’s Health

. The strategic objectives focus on four areas of activity – leading on advocacy, growing

and valuing membership, ensuring ﬁnancial security and ﬂexibility, and organisational capability.

While the objective of leading on advocacy is rightly the domain of the President, Vice President and

Federal Council, the Board has concentrated its eﬀorts on the remaining three pillars. In supporting

member value, the Board approved investment in the CPD tracker, which was launched at the 2015

National Conference, and ongoing contributions to the doctorportal platform, managed by the AMA

subsidiary, AMPCo (Australasian Medical Publishing Company Pty Limited).

The Board views digital products as a major area of investment by the Federal AMA to complement and

supplement the services provided by the State and Territory AMAs. The Board remains cognisant of the

need to appropriately harness members’ subscriptions for maximum beneﬁt.

In working to ensure ﬁnancial security and ﬂexibility the Board took a major step in 2015 with the

establishment of an Investment Committee. The Committee is chaired by Dr Gary Speck with Professor

Geoﬀ Dobb and myself as the other members. An external ﬁnancial adviser has been appointed to work

with the Committee to guide the management of the AMA’s assets. These were added to during the year

with the sale of AMPCo House in Sydney, following the relocation of the AMPCo business to more suitable

premises.

In promoting organisational capability, the Board has focused on consolidating the foundational activities

of its ﬁrst year under the new constitutional structure. The Board supported the introduction of a Group

shared services function across information technology, ﬁnancial services, and human resources. These

changes make better use of the investment in the corporate services areas, and leverage human resources

across two sites.

The year has been a challenging one for AMPCo following the decision of its Board to outsource

production of the

Medical Journal of Australia

to better manage the production costs of the Journal. As

the year drew to a close, the Board of AMPCo was delighted to announce the appointment of Laureate

Professor Nicholas Talley as the new Editor in Chief of the Journal, bringing to the role a rich research and

editorial background.

AMA Board

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

A new subsidiary company was established during the year – Doctors Health Services Pty Limited

(DrHS) – to provide nationally consistent health services to doctors and medical students. The initiative

is funded by the Medical Board of Australia and Australian Health Practitioner Regulation Agency and is

one that the Board embraced as an exemplar of the contribution that the AMA can make to the welfare

of medical practitioners and medical students. The Board of DrHS is independent of the AMA and chaired

by Dr Janette Randall. The other Board members are Dr Jennifer Alexander, Dr Michael Bonning, Dr Roger

Sexton, and Dr Peter Sharley OAM (representing the parent company).

The Board of DrHS is informed by the input of an Expert Advisory Council and supported by staﬀ within

the AMA Secretariat. Considerable work has been undertaken to put in place appropriate governance

arrangements, followed by an expression of interest process to identify suitable providers of health

services in each State and Territory.

In May, the ﬁrst changes were made to the Board membership, with Dr Kathryn Austin and Dr Tony

Bartone stepping down, replaced by Dr Bav Manoharan and Dr Gary Speck. I would like to acknowledge

the contributions of Dr Austin and Dr Bartone as two of the founding directors of the Board.

I would like to thank my fellow Directors and the AMA Secretariat for their contributions to a successful

year for the company.

Dr Elizabeth Feeney

Chair

AUSTRALIAN MEDICAL ASSOCIATION – AMA BOARD

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

AMA

Federal

Council

AMA President

Professor Brian Owler

AMA Vice President

Dr Stephen Parnis

Chair of Federal Council

and Pathologist Nominee

Dr Beverley Rowbotham

ACT Nominee

Dr Elizabeth Gallagher

NSW Nominee

Dr Saxon Smith

VIC Nominee

Dr Anthony Bartone

WA Nominee

Dr Michael Gannon

QLD Nominee

Dr Chris Zappala

SA Nominee

Dr Janice Fletcher

NT Nominee

A/Prof Robert Parker

TAS Nominee

A/Prof Tim Greenaway

NSW-ACT Area Nominee

A/Prof John Gullotta AM

QLD Area Nominee

Dr Richard Kidd

SA-NT Area Nominee

Dr Chris Moy

TAS Area Nominee

Dr Helen McArdle

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

VIC Area Nominee

A/Prof Robyn Langham

WA Area Nominee

Dr Richard Choong

Anaesthetist Nominee

Dr Andrew Mulcahy

Dermatologist Nominee

Dr Andrew Miller

Emergency Physician Nominee

A/Prof David Mountain

Ophthalmologist Nominee

Dr Bradley Horsburgh

Orthopaedic Surgeon Nominee

Dr Omar Khorshid

Paediatrician Nominee

Prof Gary Geelhoed

GP Nominee

Dr Brian Morton AM

Obstetrician and

Gynaecologist Nominee

Dr Gino Pecoraro

Physician Nominee

Dr Richard Whiting

Psychiatrist Nominee

A/Prof Jerey Looi

Radiologist Nominee

Professor Mark Khangure

Surgeon Nominee

A/Prof Sue Neuhaus

Rural Doctor Nominee

Dr David Rivett OAM

Salaried Doctor Nominee

Dr Roderick McRae

Doctors in Training Nominee

Dr Danika Thiemt

Australian Medical Students’

Association Nominee

Mr James Lawler

AUSTRALIAN MEDICAL ASSOCIATION – FEDERAL COUNCIL

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

Health

Snapshot of

2015

Australia

GP Care

Hospital Care

84%

of patient services bulk billed

93%

of Australians have a usual general practice

33,275

GPs in Australia

17.2

public hospital beds available per 1000 population

aged 65 and over

68%

triage category 3 patients seen within recommended time

73%

emergency department visits completed in four hours

or less

35 day

wait for elective surgery

1,359

in 2013–14, there were 1,359 hospitals in Australia—747

public hospitals, accounting for 65% of hospital beds

(58,600), and 612 private hospitals accounting for 35% of

beds (31,000)

1 in 5

Australians affected by multiple chronic diseases

1.3m

or 7% of Australians have used methamphetamine

1 in 8

Australians smoke

2 in 3

almost 2 in 3 adults are overweight or obese,

1 in 4 children are overweight or obese

9.7 litres

of pure alcohol was consumed per capita

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

Health Spending

$423m

in the 2015-16 Budget, the Commonwealth reduced public

hospital funding by $423 million for the three years to 2017-18

$154.6b

was spent on health goods and services in total in 2013–14

$6,639

was spent per person on average on health in 2013–14

Public Health

1 in 5

Australians affected by multiple chronic diseases

1.3m

or 7% of Australians have used methamphetamine

1 in 8

Australians smoke

2 in 3

almost 2 in 3 adults are overweight or obese,

1 in 4 children are overweight or obese

9.7 litres

of pure alcohol was consumed per capita

Sources:

GP Care Menzies Centre for Health Policy (2012). The Menzies-Nous Australian Health Survey 2012

Hospital Care Australian Institute of Health and Welfare (2015). Australia’s hospitals 2013–14: at a glance; Australian Bureau of Statistics (2015). Australian Demographic Statistics, Sep 2015;

Australian Institute of Health and Welfare (2015). Emergency department care 2014–15: Australian hospital statistics;

Australian Institute of Health and Welfare (2015). Elective surgery waiting times 2014–15: Australian hospital statistics.

Govt Spending Commonwealth Budget and MYEFO papers;

Australian Institute of Health and Welfare (2015). Commonwealth funding for public hospitals: Health expenditure Australia 2013-14

Public Health Australian Institute of Health and Welfare (2014). 2013 National Drug Strategy Household ﬁndings: key ﬁndings;

Australian Institute of Health and Welfare (2015). Australian Burden of Disease Study: fatal burden of disease;

Australian Institute of Health and Welfare (2014). Australia’s Health 2014

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

30,000

More than

Members

90 key health

meetings

The AMA

President

attended

around

representing

the AMA

73 submissions

The AMA made

to Parliamentary Inquiries

By the

numbers

Membership

Gender

Membership

Location

Source: AMA Membership and Marketing

AMA Membership

and Advocacy

2015

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

January

As the holiday season hit its peak, AMA President

Professor Brian Owler warned Australian families

that too many lives were being needlessly lost on

our roads, and advised drivers to adhere to speed

limits, don’t drink and drive, and do not drive when

fatigued. Meanwhile, the AMA’s ﬁght against the

Government’s proposed GP co-payments continued,

with the President writing to Prime Minister Abbott

urging him to personally intervene to stop the

changes. AMA Vice President Dr Stephen Parnis

said that the capacity crisis strangling the UK

health system would be replicated in Australia if

the Government continued its attacks on general

practice and primary care. The AMA released

internal research that graphically illustrated the

potential impact of co-payments on Australian

household incomes, with a $20 cut in Medicare patient rebates for standard GP consultations, and a total of

$1.3 billion being ripped out of general practice. Strong leadership and lobbying from the AMA resulted in the

Government abandoning its planned changes to Level A and Level B Medicare patient rebates for GP visits.

Professor Owler congratulated new Health Minister Sussan Ley on the Government’s decision, but advised

that the AMA still strongly opposed plans to cut the Medicare patient rebate by $5, freeze Medicare rebate

indexation, and introduce co-payments.

February

A new report from the Productivity Commission

conﬁrmed that general practice was the most

eﬃcient and cost-eﬀective part of the Australian

health system. Professor Owler said that the report

was further evidence that the Government’s attacks

on general practice were unwarranted, ill-directed,

and politically unwise. The AMA presented to the

Senate Committee on Health, and outlined the

devastating eﬀects that the Government’s co-

payment and freeze policies would have on patients,

especially the poor and disadvantaged. The AMA

conducted a series of doctor forums across the

country to discuss the Government’s destructive

Medicare reforms. As PM Tony Abbott survived a

leadership spill vote, the AMA called on the PM to

Year

Review

AMA President Professor Brian Owler with Health Minister Sussan Ley

GP Forum in Sydney to discuss Government’s Medicare reforms

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

urgently intervene and dump his Government’s bad health policies, most notably the co-payment, rebate

cut, and freeze. The latest Close the Gap Campaign Report showed that targets for life expectancy, reduced

mortality rates, and other key performance indicators for Indigenous health were not being met. Professor

Owler said greater eﬀort and funding was needed to address the social determinants of health, and that

primary health care was an important part of the close the gap strategy. In response to the damning

Human Rights Commission report on the health and treatment of refugees and asylum seekers, the AMA

again called for an independent panel to monitor health services, and for children to be removed from

detention. The AMA Specialist Trainee Survey revealed a high level of satisfaction with trainees’ work and

training experiences. Following representations from the AMA, the WMA, and other national medical

associations, the Turkish Government dropped charges against doctors who assisted people who were

injured in protests.

March

The Government dumped its latest co-payment

proposals, with Prime Minister Tony Abbott

declaring that all co-payment plans were “dead,

buried, and cremated”. At a Parliament House

media conference, Professor Owler welcomed

the Government’s decision to back away from

its decision to cut the Medicare patient rebate

by $5 – the so-called optional co-payment – but

called for the Government to go further and lift

the freeze on Medicare rebate indexation. Against

a backdrop of revelations of incidents of bullying

and harassment in medical workplaces, the AMA

used International Women’s Day to condemn

harassment, acknowledge the magniﬁcent

achievements of women in medicine, and

applaud the profession for its hallmarks of fairness

and gender equality. A review conducted by the Australian National Audit Oﬃce (ANAO) found that the

Medical Specialist Training Program was delivering on its targeted specialist training goals, including

boosting specialist medical services in regional and rural Australia. A report from the National Health

Performance Authority (NHPA) showed that general practice was the most eﬃcient and most cost-eﬀective

part of the health system but, as the AMA had been telling the Government, greater investment was

needed to allow general practice to continue providing high quality services to the community. On Close

the Gap Day, Professor Owler said that coordinated action from all governments and the whole health

sector was needed to really make a diﬀerence on long-term health outcomes for Indigenous Australians.

The new AMA

Position Statement on Palliative Approach in Residential Aged Care Facilities

recommended

that acute medical care settings should prioritise preserving and, where possible, extending life. The revised

AMA

Position Statement on Restraint in the Care of People in Residential Aged Care Facilities

recognised the

need for balance between a patient’s right to self-determination and protection from harm, including harm

to other residents and staﬀ. The AMA released its

Guide to 10 Minimum Standards for Medical Forms

help organisations design better forms for extracting medical information. Professor Owler addressed the

BMA Symposium on the Australian perspective of the social determinants of health. Dr Parnis delivered a

keynote address on physical activity at a Heart Foundation Policy Launch at Parliament House.

AUSTRALIAN MEDICAL ASSOCIATION – YEAR IN REVIEW

Professor Owler speaks to media after the Government scrapped the GP co-payment

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

April

The AMA released its Community Residency

Program for Junior Medical Oﬃcers (JMOs),

a plan to encourage more young doctors to

choose a career in general practice. Professor

Owler conducted a round of media interviews

to support the Government’s ‘

no jab, no pay

’

vaccination policy. Warning of a ‘perfect storm’

in Australia’s public hospitals, the 2015 AMA

Public Hospital Report Card was launched with

a call on governments to restore funding, build

capacity, and stop the blame game. The Report

Card was covered extensively in the national

media, and brought an almost instant response of

a Government pledge to put hospital funding at

the top of the COAG agenda. The AMA welcomed

the Government’s announcement of a Review of

the Medicare Beneﬁts Schedule (MBS) and the establishment of the Primary Health Care Advisory Group,

but warned about both initiatives being solely about ﬁnding Budget savings. Professor Owler visited

Gallipoli to oﬃciate at a special ceremony to pay tribute to doctors and other health workers who cared

for the injured and dying from all sides at the Gallipoli landing in 1915. The AMA joined with the Australian

Academy of Science to launch

Climate Change challenges to health: Risks and opportunities

, a report

outlining how to respond to the impacts of climate change on human health. The AMA backed the NPS

Medicine Wise program,

Choosing Wisely

, to minimise waste in the health system. Dr Parnis led the AMA’s

call on the Government to rule out cuts to public hospital tax concessions for public hospital staﬀ.

May

The AMA and the Medical Board of Australia

(MBA) signed a contract for the national delivery

of health services to medical practitioners

and medical students. The AMA welcomed

the election of Senator Richard Di Natale – a

general practitioner – as Leader of The Greens,

noting his experience as a doctor would give

him valuable insight on health policy. Professor

Owler declared the 2015 Federal Budget a

huge disappointment, with little on oﬀer to

make up for the massive cuts delivered to the

health sector in the 2014 Budget. The only

major initiative was the previously announced

MBS Review. Professor Owler delivered a strong

speech to the smaller private health funds,

calling for greater transparency around private

health insurance products. The AMA strongly criticised the Federal Government’s decision to fund a new

medical school at Curtin University in WA, citing a need for new training places, not new medical schools.

Dr Parnis welcomed the After Hours Review Report, which recommended returning after hours funding

AUSTRALIAN MEDICAL ASSOCIATION – YEAR IN REVIEW

Professor Owler and Vice President Dr Stephen Parnis launching the AMA Public

Hospital Report Card

Professor Owler with Leadership Development Dinner guest speaker, former Australian

Prime Minister Julia Gillard

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

to the Practice Incentives Program (PIP). Dr Parnis raised the AMA’s concerns that the Sixth Community

Pharmacy Agreement was increasing funding to pharmacy at a time when the Medicare rebate freeze was

cutting funding for medical services. The AMA joined with Palliative Care Australia in National Palliative

Care Week to encourage broader community debate about death and dying, including end of life care. An

Independent Expert Panel advised the Government to re-introduce a program to provide junior doctors

with a rural general practice experience – a move supported and championed by the AMA. The AMA

launched its

Pharmacist in General Practice Incentive Program

(PGPIP), a plan to make non-dispensing

pharmacists a key part of the future general practice health care team. The AMA National Conference took

place in Brisbane.

June

The AMA and the Law Council of Australia

joined forces to raise awareness of the victims

of domestic violence, and the important role

played by medical practitioners in identifying and

assisting victims. Professor Owler acknowledged

the outstanding contribution of the many

doctors – GPs, other specialists, researchers, and

educators – who were awarded Queen’s Birthday

Honours. In Men’s Health Week, the AMA urged

Australian men to get serious about looking

after their own health, with Dr Parnis telling

the media that two-thirds of men over 18 were

either overweight or obese. The AMA and AMSA

reiterated their opposition to the new Curtin

medical school, citing a COAG report conﬁrming

there were suﬃcient medical graduates under

existing arrangements.

The Lancet

report –

Health and Climate Change: policy responses to protect public

health

– set out policy responses to the impacts of climate change on human health, consistent with the

AMA Position Statement.

July

Professor Owler used 1 July to remind Australians

that Medicare rebates had been frozen for three

years, pushing up the costs of medical services

and private health insurance premiums. He

also welcomed the commencement of 31 new

Primary Health Networks (PHNs) across the

country, replacing the former Government’s

failed Medicare Locals. AMA Family Doctor Week

kicked oﬀ with a renewed call for the Federal

Government to support the PGPIP – a proposal

that Deloitte Access Economics estimated would

deliver $1.56 in savings for every dollar invested

in it. Professor Owler used his National Press Club

AUSTRALIAN MEDICAL ASSOCIATION – YEAR IN REVIEW

Professor Owler being interviewed for ABC Lateline

Professor Owler addresses the National Press Club

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

Address to acknowledge the outstanding contributions of grassroots GPs in successfully opposing the

Government’s bad policies, including the GP co-payment, the changes to level A and B rebates, and the

$5 cuts to Medicare rebates. He also defended the right of doctors and other healthcare workers working

with refugees and asylum seekers to speak out about concerns for their patients’ welfare, and called for

a legislated exemption from prosecution. Responding to an options paper released by the COAG Health

Council’s Review of Medical Intern Training, the AMA warned against sweeping changes and instead called

for the Review to follow the United Kingdom’s lead and undertake a national survey of medical training.

Professor Owler took to the airwaves to warn that an increase in the GST would not necessarily lead to

more funding for public hospitals. He urged the Federal Government to live up to its responsibilities and

provide proper funding to the States and Territories. The AMA made an extensive submission to the Expert

Advisory Group (EAG) on Discrimination, Bullying and Harassment established by the Royal Australasian

College of Surgeons (RACS) to deal with concerns of unacceptable behaviour in the health sector.

Professor Owler said the medical profession was leading the way in tackling problems that were prevalent

across society as a whole.

August

The AMA welcomed the Primary Health Care

Advisory Group’s Discussion Paper,

Better

Outcomes for People with Chronic and Complex

Health Conditions through Primary Health

Care

, but warned important reforms could not

succeed without signiﬁcant new investment

in general practice and genuine Government

support for GPs. Ahead of the return of Federal

Parliament following the winter recess, the

AMA called for a National Alcohol Strategy to

tackle alcohol misuse. Professor Owler said

the Federal Government had shown what was

possible with the establishment of the National

Ice Task Force, and similar decisive action was

needed on alcohol. The AMA joined forces with

the Australasian New Car Assessment Program

(ANCAP) on a new campaign urging politicians to make new technology - starting with Autonomous

Emergency Braking - standard features in all new cars sold in Australia. The

Avoid the crash, Avoid the

trauma

campaign was launched at Parliament House. The AMA kept up the pressure on Medibank Private

over its aggressive contract negotiations with private hospitals, hosting a summit of more than 60 leaders

from across all medical specialties to discuss the insurer’s behaviour. There was intense media interest in

the event, with Professor Owler appearing on the ABC’s

program and on talkback radio.

AUSTRALIAN MEDICAL ASSOCIATION – YEAR IN REVIEW

Professor Owler with Senator Nova Peris during NT visit

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

September

Three updated AMA Position Statements were

released – on

Methamphetamine, Combat Sport,

and

Climate Change and Human Health

. The

AMA also released its submission to the Federal

Government’s

Primary Health Care Review

warning against radical change for change’s sake,

and calling for the urgent lifting of the freeze

on Medicare rebates. The RACS Expert Advisory

Group adopted several AMA recommendations

in its draft report on discrimination, bullying,

and harassment, including the critical need to

provide complainants with a safe place to come

forward, free of the fear of retribution or stigma.

The AMA congratulated Malcolm Turnbull on his

election as Prime Minister on 15 September. But

the goodwill was gone by 27 September when

Ms Ley launched a political attack on Medicare and the integrity of doctors. Laureate Professor Nicholas

Talley was announced as the new Editor-in-Chief of the

Medical Journal of Australia

October

The AMA welcomed the Government’s decision

to return responsibility for aged care to the

Health portfolio under Ms Ley, giving it the

public and political focus it deserved. After

months of pressure, the Government shelved its

controversial university deregulation legislation.

Professor Owler welcomed the decision but

called on the Government to provide certainty

for students that education would not be priced

out of their reach after the next election. The

AMA backed the stance taken by Royal Children’s

Hospital (RCH) doctors in raising concerns about

the physical and mental health of children in

immigration detention centres, and called on

the Prime Minister to intervene. In separate

submissions to the Department of Health, the

AMA called for a signiﬁcant expansion of the Specialist Training Program (STP), and rejected a plan to link

Practice Incentive Program (PIP) e-Health Incentive Payments to the adoption of the MyHealth Record

by GPs. Another AMA Position Statement was released, on

Aboriginal and Torres Strait Islander Health

The AMA called on the Federal Government to hold the South Australian Government to account after

the State reneged on a deal to commit to providing enough medical internships to meet the growing

number of graduates from SA medical schools. Professor Owler wrote to Ms Ley urging her to make

AUSTRALIAN MEDICAL ASSOCIATION – YEAR IN REVIEW

Professor Owler met with Professor Patrick McGorry to discuss mental health issues

Professor Owler adressed the Australasian Road Safety Conference

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

medical training a priority agenda item at the November meeting of State and Territory Health Ministers.

The Federal Government introduced legislation for changes to Medicare Safety Net arrangements. The

AMA called for the changes to be voted down as they would wind back ﬁnancial assistance to patients for

out-of-hospital health care costs. The AMA lodged its submission in response to the MBS Review Taskforce

Consultation Paper, recommending a fast review and rapid implementation of its ﬁndings.

November

Applications opened for the 2016 AMA

Indigenous Peoples’ Medical Scholarship. A new

Bettering the Evaluation and Care of Health

(BEACH) report conﬁrmed that Australia’s GPs

were delivering eﬃcient, high-quality primary

care, putting the lie to the Government’s regular

criticisms of GPs in its eﬀorts to sell its cost-

cutting MBS review model. Professor Owler

called on the Prime Minister to immediately

rule out extending the GST to cover health,

saying such a move would penalise the poorest

and sickest in the community. New ﬁgures

showed a 10 per cent growth in organ donations

from deceased donors between January and

September 2015. The AMA welcomed the rise

but warned that the donor rate was still low

by international standards. Professor Owler urged people to seek advice from their GP and share their

decision with their family. The AMA called on Immigration Minister Peter Dutton to show compassion

and immediately ﬂy a pregnant diabetic Kurdish woman to Australia for urgent medical care, instead of

sending a neonatal specialist to the Nauru Regional Processing Centre. The COAG Health Council released

the recommendations of its Medical Intern Review and adopted many of the AMA recommendations,

including a National Training Survey. However, the AMA said it was yet to be convinced of the need for

the Review’s option of a pilot program in which the transition to practice is split between university in the

ﬁrst year and the workplace in the second. Professor Owler and Rural Health Minister Fiona Nash joined

forces to launch the AMA

Indigenous Health Report Card 2015

, highlighting the devastating eﬀects of

imprisonment on the lifelong health of Aboriginal and Torres Strait Islander people. With the school year

coming to an end, the AMA warned Year 12 students to ensure their Schoolies Week celebrations were

memorable for the right reasons, not visits to hospital emergency departments or embarrassing images

being circulated via mobile phones. The AMA ended the month by joining with international medical

associations to call on world leaders to make the health eﬀects of climate change a priority in discussions

at the United Nations Conference on Climate Change in Paris.

AUSTRALIAN MEDICAL ASSOCIATION – YEAR IN REVIEW

Dr Parnis, Professor Tom Calma, and Professor Owler launching the AMA Indigenous

Health Report Card

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

December

The Federal Government bowed to pressure

from the AMA and the community and withdrew

its proposed changes to the Medicare Safety

Net. The AMA had raised its objections in a

submission to the Senate Committee and

in meetings with the Health Minister, the

Opposition, and the Greens. The AMA wrote to

Ms Ley oﬀering solutions to address the shortfall

in doctors in rural Australia, including lifting the

targeted intake of medical students from a rural

background from one-quarter to one-third of

all new enrolments. The AMA released its new

Position Statement on Sexual Harassment in

the Medical Workplace 2015

and its updated

Position Statement on Workplace Bullying and

Harassment

, outlining the AMA’s commitment to

working with the whole of the medical profession to stamp these problems out. It also released Position

Statements on

International Medical Graduates, Primary Health Networks (PHNs), the Medical Home,

Tobacco Smoking and E-Cigarettes, and the Health Care of Asylum Seekers

. The Federal Treasurer released

the Mid-Year Economic and Fiscal Outlook (MYEFO), with more cuts to health funding and cost-shifting

to patients. Professor Owler said the axing of bulk billing incentives for pathology and diagnostic imaging

services would increase the health cost burden for families. In its submission to the Government’s Private

Health Insurance (PHI) Review, the AMA called for greater transparency so people knew exactly what they

were covered for under their policies. As the holiday season approached, the AMA urged all Australians to

drive safely, to eat responsibly, to be careful in and around the water, to protect themselves from harmful

UV exposure, and to use the time with their families to have the important but diﬃcult conversations

about end of life care. The AMA ended the year by encouraging smokers to make quitting the deadly habit

their New Year resolution.

John Flannery/Maria Hawthorne

AUSTRALIAN MEDICAL ASSOCIATION – YEAR IN REVIEW

Dr Parnis on ABC News Breakfast discussing the Government’s MBS Review

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

AUSTRALIAN MEDICAL ASSOCIATION LIMITED

ABN 37 008 426 793

AND CONTROLLED ENTITIES

CONTENTS

DIRECTORS’ REPORT ......................................................................................................................................................................................24

STATEMENT OF COMPREHENSIVE INCOME......................................................................................................................................31

STATEMENT OF FINANCIAL POSITION .................................................................................................................................................32

STATEMENT OF CHANGES IN EQUITY..................................................................................................................................................33

STATEMENT OF CASH FLOWS ..................................................................................................................................................................34

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS.....................................................................................35

DIRECTORS’ DECLARATION ........................................................................................................................................................................ 66

AUDITOR’S INDEPENDENCE DECLARATION ....................................................................................................................................67

INDEPENDENT AUDIT REPORT ................................................................................................................................................................68

31 DECEMBER 2015

Financial Report

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

Australian Medical Association Limited (the Company) and its controlled entities for the year ended

31 December 2015, and the auditor’s report thereon.

DIRECTORS

The Directors of the Company at any time during or since the end of the ﬁnancial year are:

Name and Qualications Experience and Special Responsibilities

Dr Kathryn Austin

B.Pharm B.Med GAICD, MRANZCOG

Director, Australian Medical Association Limited, 31 July 2014 - 31 May 2015.

AMANSW Charitable Foundation Director, July 2013 -.

Fellow in Maternal Foetal Medicine Subspecialty Obstetrics and Gynaecology.

Graduate Australian Institute of Company Directors, 2014.

Australian Medical Association (NSW) Limited, Treasurer and Director, Board of

Directors, July 2011 - 31 July 2014.

Australian Medical Association (NSW) Limited Audit and Risk Committee

Chairman, June 2013 - July 2014.

State Representative, AMA Council of Doctors in Training, 2009 - 2012.

AMA Doctors in Training Representative, May 2010 – May 2011.

NSW AMA Doctors in Training Committee Vice Chair 2009 and Chairperson,

2010 - 2012.

Dr Anthony Bartone

MBBS, FRACGP, MBA

Director, Australian Medical Association Limited, 27 May 2012 - 25 May 2014 and

31 July 2014 - 31 May 2015.

Director, Australian Medical Association (Victoria) Limited, May 2010 -.

President, Australian Medical Association (Victoria) Limited, May 2014 -.

General Practitioner.

Prof Georey Dobb

BSc (Hons), MBBS, FRCP, FRCA,

FANZCA, FCICM, FAMA

Director, Australian Medical Association Limited, 23 October 2002 - 25 May 2014

and 31 July 2014 -.

Past President, Australian Medical Association (WA) Incorporated.

Chair, Australian Organ and Tissue Authority Advisory Council.

Board Member, Australian Council on Healthcare Standards.

Intensive Care Physician.

Dr Iain Dunlop

MBBS (Hons), FRANZCO, FRACS

Director, Australian Medical Association Limited, 30 May 2010 -.

Chairman of Council, Australian Medical Association Limited, 24 May 2013 – 25

May 2014.

Executive Councillor, Australian Medical Association Limited, 29 May 2011 – 24

May 2013.

Immediate Past President, Australian Medical Association (ACT) Limited.

Director, Vision 2020 Australia, 2004 -.

Director, Sight For Life Foundation, 2009 -.

Past Chairman, MSC, Sydney and Sydney Eye Hospital.

Past President, Royal Australian and New Zealand College of Ophthalmologists.

Chairman, Department of Health Ophthalmic Prostheses Clinical Advisory

Group, 2009 -.

Ophthalmologist.

Dr Elizabeth Feeney

MBBS, MHL, FANZCA, FAICD, FAMA

Director, Australian Medical Association Limited, 6 November 2010 -.

Chairman, Board, Australian Medical Association Limited, 25 May 2014 -.

Director, Australasian Medical Publishing Company Proprietary Limited, 4 June 2013 -.

Director, Australian Medical Association (NSW) Limited, 2003–2011.

Anaesthetist.

Directors’ report

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

Name and Qualications Experience and Special Responsibilities

Dr Leonie Katekar

MBBS, BSc(Med), MBioethics,

FRACMA, GAICD

Director, Australian Medical Association Limited, 31 July 2014 - 31 January 2016.

Councillor, Australian Medical Association Northern Territory Incorporated, 2011 -.

Inaugural Board Director, HealthDirect Australia (formerly National Health Call

Centre Network), 2007 - 2011.

Chief Executive Oﬃcer and Medical Advisor, Top End Division of General

Practice, 2001 - 2008.

Medical Administrator and Health Informatics.

Dr Richard Kidd

BHB, MBChB, Dip Obs, FAMA,

Specialist VR General Practitioner

Director, Australian Medical Association Limited, 17 June 2011 -.

Director, Board Member, The Queensland Branch of Australian Medical

Association, 2007 - June 2014, December 2014 -.

Chair, The Queensland Branch of Australian Medical Association, Council of

General Practice, June 2009 -.

Director, PeachTree Perinatal Wellness, 2012 -.

Co-Founder, Doctors for Refugees.

General Practitioner with special interests in Aged Care, Mental Health, Palliative

Care and Medical Education.

Dr Michael Levick

MBBS (Hons)

Director, Australian Medical Association Limited, 31 May 2015 – 25 June 2015.

Director and Practice Principal of Moreland General Practice, 2012 -.

Board Member, Australian Medical Association (Victoria) Limited, 2013 - 2015.

General Practitioner.

Dr Bavahuna Manoharan

BSc (BioMed), MBBS

Director, Australian Medical Association Limited, 31 May 2015 -.

Treasurer & Director, Board of Directors, The Queensland Branch of Australian

Medical Association, June 2014 -.

The Queensland Branch of Australian Medical Association Finance, Risk & Audit

Committee member, June 2014 -.

The Queensland Branch of Australian Medical Association Governance

Committee member, April 2015 -.

The Queensland Branch of Australian Medical Association Councillor and Branch

Council, June 2010 -.

The Queensland Branch of Australian Medical Association Council of Doctors

in Training, Executive member, January 2011-, Deputy Chair, 2014, & General

Committee member, 2010.

Queensland Representative to the Federal AMA Council of Doctors in Training,

June 2013 - 2015).

Convenor of AMA Queensland Junior Doctor Conference, annually June 2014 -

2016.

Member, Queensland Health Medical Workforce Plan Steering Committee,

November 2015 -.

Accredited Registrar in General Surgery, Royal Australasian College of Surgeons,

February 2015 -.

Dr Helen McArdle

BMedSc, MBBS, MPH, FAFOEM,

FRACMA, FAICD

Director, Australian Medical Association Limited, 20 March 2013 - 25 May 2014

and 31 July 2014 -.

Director, AMA Tasmania.

Deputy Chairman, Southern Cross Care (TAS) Inc.

Chairman, Post Graduate Medical Council of Tasmania.

Specialist Medical Administrator and Occupational Physician.

Directors’ report

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

Name and Qualications Experience and Special Responsibilities

Prof Brian Owler

MBBS, PhD, FRACS, GAICD

President, Australian Medical Association Limited, 25 May 2014 -.

Director, Australian Medical Association Limited, 29 May 2011 -.

Director, AMA Commercial Pty Ltd, 25 May 2014 -.

Director, AMA Pty Limited, 25 May 2014 -.

Director, AMA NT Pty Ltd, 25 May 2014 -.

Director, Actraint No. 110 Pty Limited, 25 May 2014 -.

President, Australian Medical Association (NSW) Limited, June 2012 - 13 May

2014.

Neurosurgeon.

Dr Stephen Parnis

MBBS, DipSurgAnat, FACEM, GAICD

Vice President, Australian Medical Association Limited, 25 May 2014 -.

Director, Australian Medical Association Limited, 29 May 2011 -.

Director, AMA Pty Limited, 25 May 2014 -.

Director, Actraint No. 110 Pty Limited, 25 May 2014 -.

President, Australian Medical Association (Victoria) Limited, May 2012 - May 2014.

Vice President, Australian Medical Association (Victoria) Limited, 2006 - May 2012.

Director, Australian Medical Association (Victoria) Limited, 2006 - 2014.

Emergency Physician, John Fawkner Private Hospital and St Vincent’s Hospital

Melbourne.

Dr Peter Sharley OAM

MBBS, Dip RACOG, Dip Av Med, Dip

Bus Mgt, GAICD, FANZCA, FCICM

Director, Australian Medical Association Limited, 26 May 2012 - 25 May 2014 and

31 July 2014 -.

Director, Doctors Health Services Pty Ltd.

Board Member, Australian Medical Association (South Australia) Incorporated.

Chairman of the Board, SA Post Graduate Medical Association.

Intensive Care Specialist.

Dr Gary Speck AM

MBBS, BMed SC (Hons), FRACS,

FAOrthA, FAMA, GAICD

Director, SPT Ltd.

Director MIPS Ltd.

Director, Australian Society of Orthopaedic Surgeons.

Chairman, Council of Procedural Specialists.

Orthopaedic Surgeon.

Directors’ report

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

Directors’ report

PRINCIPAL ACTIVITIES

Australian Medical Association Limited (AMA) is a

public company limited by guarantee. The AMA

represents the interests of the registered medical

practitioners of Australia and the medical students

of Australia, and advocates on behalf of its members

and their patients. The members of the AMA are

simultaneously members of the State and Territory

AMAs which are separate legal entities.

The principal activities during the reporting year, as

set out in the Constitution, were to:

• preserve, maintain, promote and advance

the intellectual, philosophical, social, political,

economic and legal interests of Members; and

• promote the wellbeing of patients and take

an active part in the promotion of health care

programs for the beneﬁt of the community and

to participate in the resolution of major social and

community health issues.

The AMA undertakes advocacy on behalf of its

members, provides services and communications

to its members and through a subsidiary, publishes

and circulates the

Medical Journal of Australia

. The

Australian Medical Association and Controlled

Entities (the Group) owns property and investment

assets to support revenue earned from membership

subscriptions.

STRATEGIC DIRECTION

The strategic objectives for the AMA were adopted

by the Board in late 2014 for the period 2015-2017.

They are reviewed annually by the Board and were

conﬁrmed for the 2015 year.

The strategic objectives have four pillars – leading

on advocacy; growing and valuing membership;

ensuring ﬁnancial security and ﬂexibility; and

organisational capability. These support the AMA’s

mission of

Leading

Australia’s Doctors – Promoting

Australia’s Health.

Individual strategic objectives under the advocacy

pillar include strengthening the AMA’s role as the

leader of Australia’s doctors; developing the next

generation of Australia’s medical leaders; providing

for individual member engagement in the medico-

political process; and driving public health policies for

a healthier and safer Australia.

The strategic objectives are rolled out in an

operational plan which is reviewed and updated

each year. The activities agreed for inclusion in the

operational plan are funded in the budget.

REVIEW AND RESULT OF

OPERATIONS

The consolidated proﬁt after income tax was

$350,007 (2014: $3,288,598).

The 2014 after tax proﬁt includes the gain on sale of

AMPCo House of $3,569,392.

The operations of the Group during the ﬁnancial year

included: promoting the interests of the medical

profession in the medico-political arena and more

widely; advocating for patient health and the health

of the community; servicing members through

the provision of a range of membership services

and beneﬁts; publishing, among other things,

the highly recognised and peer reviewed general

medical journal, the

Medical Journal of Australia

; the

management and rental of commercial properties

and maintenance and operation of a comprehensive

data base containing both member and non-

member information.

DIVIDENDS

The Constitution of the AMA does not permit the

distribution of dividends to members.

STATE OF AFFAIRS

There were no signiﬁcant changes in the state of

aﬀairs of the Group during the ﬁnancial year under

review which are not disclosed in the ﬁnancial

statements.

EVENTS SUBSEQUENT TO

BALANCE DATE

No matter or circumstance has arisen since the end

of the ﬁnancial year to the date of this report which

has signiﬁcantly aﬀected or may signiﬁcantly aﬀect

the operations of the Group, the results of those

operations or the state of aﬀairs of the Group in

subsequent ﬁnancial years.

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

Directors’ report

LIKELY DEVELOPMENTS

The AMA has invested signiﬁcantly in IT infrastructure

and solutions over the past year. This is likely to

continue with new products and services for

members. During 2015 the AMA entered into an

agreement with the Medical Board of Australia and

AHPRA for the national delivery of a health service for

medical practitioners and medical students. This will

continue to evolve during 2016 with the initiation of

face to face and online services delivered by State-

based providers.

The Board established an Investment Committee in

2015 to work with the company’s external investment

adviser to maximise the investment returns to the

company.

Following a review of subsidiary companies, AMA

Commercial Pty Limited will be wound up in 2016 as

it is surplus to needs.

AUDITOR’S INDEPENDENCE

DECLARATION

A copy of the Auditor’s independence declaration as

required under s307C of the

Corporations Act 2001

set out on page 67.

INDEMNIFICATION AND

INSURANCE OF OFFICERS AND

AUDITORS

Indemnication

Since the end of the previous ﬁnancial year, the

Group has not indemniﬁed or made a relevant

agreement indemnifying against a liability of any

person who is or has been an oﬃcer or auditor of the

Group.

Insurance premiums

During the ﬁnancial year the AMA has paid premiums

on behalf of the entities in the Group in respect of

Directors’ and Oﬃcers’ Liabilities and Professional

Indemnity for the year ended 31 December 2015.

Such insurance premiums insure against certain

liability (subject to speciﬁc exclusions) of persons

who are or have been Directors or Executive Oﬃcers

of the AMA and its subsidiaries.

During the ﬁnancial year the AMA has paid premiums

to insure the above Directors, together with Oﬃcers

of the Group, against liabilities for costs and expenses

incurred by them in defending any legal proceedings

arising out of their conduct whilst acting in the

capacity of Directors and Oﬃcers of the Group, other

than conduct involving a wilful breach of duty in

relation to the Group.

INFORMATION ON DIRECTORS

2015 was the ﬁrst full year of operation of the

Board that was established following the major

constitutional changes in 2014. The Constitution

set out the process for replacement of the initial

directors with half to stand down in 2015 and half

in 2016. Those standing down were eligible for

reappointment.

The Board is comprised of 11 medically qualiﬁed

Directors and includes the President and Vice

President, one Director nominated by each State

and Territory AMA and one Director nominated by

the AMA Council of Doctors in Training. The Chair

is elected from among the Directors. Dr Elizabeth

Feeney was the inaugural Chair and was reappointed

in 2015 for a further term of 12 months.

Under the Constitution the Directors are required

to be appointed on the basis of their skills and

experience.

Director’s interests

Since the end of the previous ﬁnancial year no

Director has received or become entitled to receive a

beneﬁt, other than:

(a) a beneﬁt included in the aggregate amount of

emoluments received or due and receivable

by Directors shown in the ﬁnancial statements

(Note 23);

(b) the ﬁxed salary of an employee of the Company

or an entity in the Group;

by reason of a contract made by the AMA or a related

corporation with the Director, or with a ﬁrm of which

he/she is a member, or with a company in which he/

she has a substantial ﬁnancial interest.

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

Directors’ report

DIRECTORS’ MEETING ATTENDANCE

Directors’ meetings held during 2015 reﬂected the changes in the Constitution adopted by the Members at

the AGM held on 24 May 2014.

During the period 1 January 2015 to 31 December 2015 the Board met on 13 occasions, 7 were face to face

meetings and 6 were via teleconference/video conference.

The Audit and Risk Committee met four times during 2015, with an expanded Charter from 31 July 2014, and

as a Committee of the new Board. Two members of the Committee are Directors and one is an independent

appointment. An Investment Committee was established in October 2015, with all three members of the

Committee being Directors.

The following tables summarise the meeting attendance of the Directors and Committee Members during

2015.

The number of meetings each Director/Committee Member was eligible to attend and actually attended is

noted in the following tables:

Board Meetings Audit and Risk Committee

Eligible

to Attend

Attended

Eligible

to Attend

Attended

Prof Brian Owler 13 10 Dr Iain Dunlop 4 4

Dr Stephen Parnis 13 13 Dr Leonie Katekar 3 2

Prof Geoﬀrey Dobb 13 12 Dr Helen McArdle 1 1

Dr Elizabeth Feeney 13 13 Mr Ed Killesteyn 4 4

Dr Iain Dunlop 13 9

Dr Kathryn Austin 6 6

Investment Committee

Dr Anthony Bartone 6 6

Dr Leonie Katekar 13 13

Eligible

to Attend

Attended

Dr Richard Kidd 13 12

Dr Michael Levick 1 0 Dr Gary Speck 2 2

Dr Bavahuna Manoharan 7 7 Dr Elizabeth Feeney 2 2

Dr Helen McArdle 13 13 Prof Geoﬀrey Dobb 2 2

Dr Peter Sharley 13 11

Dr Gary Speck 6 6

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

Directors’ report

Australian Medical Association Limited (AMA) is a company limited by guarantee. If the AMA is wound up,

each member of the AMA, and each person who ceased to be a member in the preceding year, undertakes

to contribute to the payment of debts and liabilities, and the costs, charges and expenses of winding

up the AMA, and to the adjustment of rights of contributories amongst themselves, of an amount not

exceeding two dollars.

Signed in accordance with a resolution of the Directors.

Prof Brian Owler Dr Elizabeth Feeney

Director Director

Australian Medical Association Limited Australian Medical Association Limited

Dated this 21st day of April 2016.

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

CONSOLIDATED

Note

2015

2014

Revenue 20,249,023 20,323,111

Other income 444,973 3,821,999

2 20,693,996 24,145,110

Expenditure

Employee beneﬁts expense (11,972,944) (11,563,136)

Depreciation and amortisation expense 22 (727,219) (732,314)

Cost of goods sold (37,999) (32,759)

Bad debt expense 22 (10,879) -

Finance costs (88,724) (81,243)

Production costs -

Medical Journal of Australia

(1,104,473) (1,182,825)

Financial assistance - States and Territories (53,039) (42,113)

Federal Council and committees (585,956) (587,550)

Travel and accommodation (405,468) (446,876)

Production and publications (375,131) (149,635)

National Conference (437,200) (393,686)

Outside bodies and overseas aﬃliations (175,604) (230,257)

Campaigns and projects (172,333) (158,219)

Cost of collection contribution (212,768) (201,360)

Insurance (167,991) (186,376)

Consultants (527,314) (533,855)

Communication costs (211,981) (210,338)

Oﬃce and administration costs (362,021) (449,203)

Sponsorship and commission (13,621) (15,007)

Other expenses 2 (3,459,618) (2,825,973)

(21,102,283) (20,022,725)

(Loss)/Prot before income tax (408,287) 4,122,385

Income tax expense 4 758,294 (833,787)

(Loss)/Prot for the year 22 350,007 3,288,598

Total comprehensive income for the year 350,007 3,288,598

(Notes to and forming part of these ﬁnancial statements are annexed)

Statement of comprehensive income

For the year ended 31 December 2015

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

Statement of nancial position

For the year ended 31 December 2015

CONSOLIDATED

Note

2015

2014

Assets

Current assets

Cash and cash equivalents 5 8,786,891 4,345,905

Trade and other receivables 6 2,009,587 9,884,189

Inventories 7 33,930 42,928

Prepayments 8 474,577 571,112

Income tax receivable 924,174 -

TOTAL CURRENT ASSETS 12,229,157 14,844,134

Non-current assets

Other investments 9 1 1

Intangible assets 10 55,800 50,218

Investment properties 11 710,569 823,962

Property, plant and equipment 12 11,002,394 9,915,030

Deferred tax assets 13 561,069 134,201

TOTAL NONCURRENT ASSETS 12,329,833 10,923,412

TOTAL ASSETS 24,558,990 25,767,546

Liabilities

Current Liabilities

Trade and other payables 14 3,433,499 3,474,057

Interest bearing loans and borrowings 15 - 1,013,000

Employee beneﬁts 16 1,140,570 1,358,209

Income tax payable 17 - 246,745

TOTAL CURRENT LIABILITIES 4,574,068 6,092,011

Non-currrent liabilities

Employee beneﬁts 16 63,264 103,884

Total non-current liabilities 63,264 103,884

TOTAL LIABILTIES 4,637,332 6,195,895

Net assets 19,921,658 19,571,651

Equity

Asset revaluation reserves - 4,794,167

Retained earnings 19,921,658 14,777,484

TOTAL EQUITY 19,921,658 19,571,651

(Notes to and forming part of these ﬁnancial statements are annexed)

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

Attributed to equity holders of the parent

CONSOLIDATED

Retained

Earnings

Asset

Revaluation

Reserves

Total Equity

At 1 January 2014 11,488,886 4,794,167 16,283,053

Proﬁt/(loss) for the year 3,288,598 - 3,288,598

Other comprehensive income - - -

At 31 December 2014 14,777,484 4,794,167 19,571,651

Proﬁt/(loss) for the year 350,007 - 350,007

Changes due to reclassiﬁcation 4,794,167 4,794,167 -

Other comprehensive income - - -

At 31 December 2015 19,921,658 - 19,921,658

(Notes to and forming part of these ﬁnancial statements are annexed)

Statement of changes in equity

For the year ended 31 December 2015

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

Statement of cash flows

For the year ended 31 December 2015

CONSOLIDATED

Note

2015

2014

Cash ow from operating activities

Membership subscriptions received 13,108,247 12,649,304

Commisssions received 1,160,953 1,155,248

Other receipts, including sales and subscriptions 9,830,047 8,331,945

Interest received 87,751 152,717

Interest paid (88,724) (81,243)

Income tax (paid)/received (837,493) 72,651

Payment to suppliers and employees (23,718,409) (20,347,387)

Net cash (outow)/inow from operating activities 22 (457,628) 1,933,235

Cash ow from investing activities

Payments for intangible assets 10 (20,500) (20,523)

Payments for property, plant and equipment 12 (1,717,016) (2,337,330)

Proceeds from property, plant and equipment 7,625,000 13,947

Proceeds from other investments 22 24,000 24,000

Dividends received 2, 22 129 173

Net cash inow/(outow) from investing activities 5,911,613 (2,319,733)

Cash ow from nancing activities

Repayment of bank borrowings (1,013,000) (293,000)

Net cash (outows)/inows from nancing activities (1,013,000) (293,000)

Net increase/(decrease) in cash held 4,440,985 (679,498)

Cash and cash equivalents at the beginning of the year 4,345,905 5,025,403

Cash and cash equivalents at the end of the year 8,786,891 4,345,905

(Notes to and forming part of these ﬁnancial statements are annexed)

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

Notes to and forming part of the nancial statements

For the year ended 31 December 2015

NOTE 1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The consolidated ﬁnancial statements and notes represent those of the AMA and its controlled

entities.

The separate ﬁnancial statements of the parent entity, Australian Medical Association Limited,

have not been presented within this ﬁnancial report as permitted by amendments made to

the

Corporations Act 2001

Basis of preparation

The ﬁnancial statements are general purpose ﬁnancial statements that have been prepared

in accordance with Australian Accounting Standards (including Australian Accounting

Interpretations) of the Australian Accounting Standards Board (AASB) and the Corporations

Act 2001. The AMA is a not for proﬁt entity for ﬁnancial reporting purposes under Australian

Accounting Standards.

Australian Accounting Standards set out accounting policies that the AASB has concluded

would result in ﬁnancial statements containing relevant and reliable information about

transactions, events and conditions. Compliance with Australian Accounting Standards

ensures that the ﬁnancial statements and notes also comply with International Financial

Reporting Standards (IFRS). Material accounting policies adopted in the preparation of

the ﬁnancial statements are presented below and have been consistently applied unless

otherwise stated.

The ﬁnancial statements have been prepared on an accruals basis and are based on historical

costs, modiﬁed, where applicable, by the measurement at fair value of selected non-current

assets, ﬁnancial assets and ﬁnancial liabilities.

The ﬁnancial statements were approved by the Board on 21st April 2016.

(a) Principles of consolidation

The consolidated ﬁnancial statements incorporate the assets, liabilities and results of entities

controlled by Australian Medical Association Limited at the end of the reporting period. A

controlled entity is any entity over which Australian Medical Association Limited has the

power to govern the ﬁnancial and operating policies so as to obtain beneﬁts from its activities.

Where controlled entities have entered or left the Group during the year, the ﬁnancial

performance of those entities is included only for the period of the year that they were

controlled. A list of controlled entities is contained in Note 21 to the ﬁnancial statements.

In preparing the consolidated ﬁnancial statements, all inter-group balances and transactions

between entities in the consolidated group have been eliminated in full on consolidation.

Non-controlling interests, being the equity in a subsidiary not attributable, directly or indirectly,

to a parent, are shown separately within the equity section of the consolidated statement of

ﬁnancial position and statement of comprehensive income. The non-controlling interests in

the net assets comprise their interests at the date of the original business combination and

their share of changes in equity since that date.

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

Notes to and forming part of the nancial statements

For the year ended 31 December 2015

NOTE 1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

(b) Functional and presentation currency

These consolidated ﬁnancial statements are presented in Australian dollars, which is the

functional currency of the Group.

The preparation of ﬁnancial statements requires management to make judgements, estimates

and assumptions based on historical knowledge and best available current information that

aﬀect the application of accounting policies and the reported amounts of assets, liabilities,

income and expenses. Estimates assume a reasonable expectation of future events and

are based on current trends and economic data, obtained both externally and within the

Company. Actual results may diﬀer from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to

accounting estimates are recognised in the period in which the estimate is revised and in any

future periods aﬀected.

Key estimates and judgements

The Company assesses impairment at the end of each reporting period by evaluation of

conditions and events speciﬁc to the AMA that may be indicative of impairment triggers.

(d) Revenue recognition

Goods sold

Revenue from the sale of goods is measured at the fair value of the consideration received

or receivable, net of returns, allowances and trade discounts. Revenue is recognised when

persuasive evidence exists, usually in the form of an executed sales agreement, that the

signiﬁcant risks and rewards of ownership have been transferred to the buyer, recovery of

the consideration is probable, the associated costs and possible return of goods can be

estimated reliably, there is no continuing management involvement with the goods and the

amount of revenue can be measured reliably. If it is probable that discounts will be granted

and the amount can be measured reliably, then the discount is recognised as a reduction of

revenue as the sales are recognised.

Commissions

When an entity in the Group acts in the capacity of an agent rather than as the principal in

a transaction, the revenue recognised is the net amount of commission made by the Group.

Membership subscriptions and other services

Revenue from the membership subscriptions and other services rendered are recognised in

proﬁt or loss in proportion to the stage of completion of the transaction at the reporting date.

The stage of completion is determined by reference to the membership year.

Rental income

Rental income is recognised in the statement of comprehensive income in the reporting

period in which it is received, over the term of the lease in accordance with the lease

agreement. Lease incentives granted are recognised as an integral part of the total rental

income over the term of the lease.

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

NOTE 1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(e) Finance income and expenses

Finance income comprises interest income on funds invested. Interest income is recognised

as it accrues in proﬁt and loss, using the eﬀective interest method.

Finance expenses comprise interest expense on borrowings. All borrowing costs are

recognised in proﬁt or loss using the eﬀective interest method.

(f) Tax consolidation

Australian Medical Association Limited and its wholly-owned Australian subsidiaries formed

an income tax consolidated group under the tax consolidation legislation with eﬀect from

1 January 2011. Australian Medical Association Limited is the head entity of the Group.

Each entity in the Group recognises its own current and deferred tax assets and liabilities.

Such taxes are measured using the ‘separate taxpayer within group’ approach to allocation.

Current tax liabilities/(assets) and deferred tax assets arising from unused tax losses and tax

credits in the subsidiaries are immediately transferred to the head entity.

The tax consolidated group has entered a tax funding arrangement whereby each company

in the Group contributes to the income tax payable by the Group. Diﬀerences between

the amounts of net tax assets and liabilities derecognised and the net amounts recognised

pursuant to the funding arrangement are recognised as either a contribution by, or

distribution to the head entity.

(g) Goods and services tax

Revenues, expenses and assets are recognised net of the amount of the Goods and Services

Tax (GST), except where the amount of GST incurred is not recoverable from the taxation

authority. In these circumstances, the GST is recognised as part of the cost of acquisition of

the asset or as part of the expense.

Trade receivables and trade payables are stated with the amount of GST included. The net

amount of GST recoverable from, or payable to, the Australian Tax Oﬃce (ATO) is included as

a current liability in the statement of ﬁnancial position. Other receivables and other payables

are stated with the amount of GST excluded.

Cash ﬂows are included in the statement of cash ﬂows on a gross basis. The GST components

of cash ﬂows arising from investing and ﬁnancing activities, which are recoverable from or

payable to the ATO are classiﬁed as operating cash ﬂows.

Notes to and forming part of the nancial statements

For the year ended 31 December 2015

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

Notes to and forming part of the nancial statements

For the year ended 31 December 2015

NOTE 1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(h) Non-derivative nancial instruments

The Group initially recognises loans and receivables and deposits on the date that they are

originated. All other ﬁnancial assets (including assets designated at fair value through proﬁt

or loss) are recognised initially on the trade date at which the Group becomes a party to the

contractual provisions of the instrument.

The Group no longer recognises a ﬁnancial asset when the contractual rights to the cash

ﬂows from the asset expire, or it transfers the rights to receive the contractual cash ﬂows on

the ﬁnancial asset in a transaction in which substantially all the risks and rewards of ownership

of the ﬁnancial asset are transferred. Any interest in transferred ﬁnancial assets that is created

or retained by the Group is recognised as a separate asset or liability.

Financial assets and liabilities are oﬀset and the net amount presented in the statement of

ﬁnancial position when, and only when, the Group has a legal right to oﬀset the amounts

and intends either to settle on a net basis or to realise the asset and settle the liability

simultaneously.

Loans and receivables

Loans and receivables are ﬁnancial assets with ﬁxed or determinable payments that are not

quoted in an active market. Such assets are recognised initially at fair value plus any directly

attributable transaction costs. Subsequent to initial recognition, loans and receivables are

measured at amortised cost using the eﬀective interest method of asset valuation, less any

impairment losses. Loans and receivables comprises cash and cash equivalents and trade and

other receivables.

Available for sale nancial assets

The Group’s investment in equity securities are classiﬁed as available for sale ﬁnancial assets.

Subsequent to initial recognition, they are measured at fair value except for unit trusts that do

not have a quoted market price in an active market and where the fair value is insigniﬁcant

and cannot be measured reliably.

Financial liabilities

Financial liabilities are recognised initially at fair value plus any attributable transaction costs.

Subsequent to initial recognition, the ﬁnancial liabilities are measured at amortised cost

using the eﬀective interest rate method. Financial liabilities comprise loans and borrowings,

trade and other payables.

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

NOTE 1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(i) Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, other

short-term highly liquid investments with original maturities of three months or less and

bank overdrafts.

(j) Trade and other receivables

Trade and other receivables include amounts due from customers for goods sold and

services performed in the ordinary course of business. Receivables expected to be collected

within 12 months of the end of the reporting period are classiﬁed as current assets. All other

receivables are classiﬁed as non-current assets.

(k) Trade and other payables

Trade and other payables represent the liabilities for goods and services received by the

Group that remain unpaid at the end of the reporting period. The balance is recognised as a

current liability with the amounts normally paid within 30 days of recognition of the liability.

(l) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of assets

that necessarily take a substantial period of time to prepare for their intended use or sale, are

added to the cost of those assets, until such time as the assets are substantially ready for their

intended use or sale.

All other borrowing costs are recognised in proﬁt or loss in the period in which they are

incurred.

(m) Inventories

Inventories are valued at the lower of cost and net realisable value. The cost of inventories

is based on the ﬁrst-in ﬁrst-out principle, and includes expenditure incurred in acquiring the

inventories and bringing them to their existing location and condition. Net realisable value

is the estimated selling price in the ordinary course of business, less the estimated costs of

completion and selling expenses.

(n) Property, plant and equipment

Recognition and measurement

Items of property, plant and equipment are measured at cost less accumulated depreciation

and accumulated impairment losses.

Cost includes expenditures that are directly attributable to the acquisition of the asset. The

cost of self-constructed assets includes the cost of materials and direct labour, any other

costs directly attributable to bringing the asset to a working condition for its intended use

and the costs of dismantling and removing the items and restoring the site on which they

are located. Purchased software that is integral to the functionality of the related equipment

is capitalised as part of that equipment.

Notes to and forming part of the nancial statements

For the year ended 31 December 2015

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

Notes to and forming part of the nancial statements

For the year ended 31 December 2015

NOTE 1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(n) Property, plant and equipment (continued)

When parts of an item of property, plant and equipment have diﬀerent lives, they are

accounted for as separate items (major components) of property, plant and equipment.

Gains and losses on disposal of an item of property, plant and equipment are determined

by comparing the proceeds from disposal with the carrying amount of property, plant and

equipment and are recognised net, within proﬁt or loss.

The revaluation reserve disclosed in prior year accounts consist mainly of a revaluation of

AMA House and the leasehold land it stands on, performed in 1995. This revaluation was

booked prior to the change in accounting standards that require a revaluation policy be

made with suﬃcient regularity to ensure that the carrying amount does not diﬀer materially

from that which would be determined using fair value at the end of the reporting period.

The cost base of AMA House is taken to include this valuation. In the 2015 ﬁnancial year, asset

revaluation reserves have been re-classiﬁed to retained earnings.

Depreciation

Depreciation is recognised in proﬁt or loss on a straight-line basis over the estimated useful

lives of each part of an item of property, plant and equipment. Leased assets are depreciated

over the shorter of the lease term and their useful lives. Land is not depreciated.

The estimated depreciation rates for the current and comparative periods are as follows:

2015 2014

Buildings 2.5% - 4% 2.5% - 4%

Oﬃce Furniture 5% - 25% 5% - 25%

Oﬃce Equipment 10% - 50% 10% - 50%

Fixture and Fittings 5% 5%

Motor Vehicles 12.5% 12.5%

Personal Computer Network 20% - 27% 20% - 27%

Computer Hardware 20% - 33.33% 20% - 33.33%

Computer Software 25% 25%

Items less than $300 100% 100%

Depreciation methods, useful lives and residual values are reassessed at the reporting date.

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

NOTE 1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(o) Intangible assets

Intangible assets that are acquired by the Group, which have ﬁnite lives, are measured at cost

less accumulated depreciation and accumulated impairment losses.

Subsequent expenditure

Subsequent expenditure is capitalised only when it increases the future economic beneﬁts

embodied in the speciﬁc asset to which it relates. All other expenditure, including expenditure

on internally generated goodwill and brands, is recognised in proﬁt or loss when incurred.

Amortisation

Amortisation is calculated over the cost of the asset, or another amount substituted for cost,

less its residual value.

Amortisation is recognised in proﬁt or loss on a straight-line basis over the estimated

useful lives of intangible assets, from the date that they are available for use. The estimated

depreciation rates for the current and comparative periods are as follows:

2015 2014

Membership Database 20% 20%

IT Project Development Costs 20% – 33.33% 20% – 33.33%

Website 20% – 33.33% 20% – 33.33%

Amortisation methods, useful lives and residual values are reviewed at each ﬁnancial year-

end and adjusted if appropriate.

(p) Investment properties

Investment property is held either to earn rental income and capital appreciation or for both,

but not for sale in the ordinary course of business, use in the production or supply of goods

or services or for administrative purposes. Investment property is measured at cost less

accumulated depreciation and accumulated impairment losses. Direct lease costs incurred

in negotiating and arranging operating leases over investment property are added to the

carrying amount and recognised as an expense over the lease term.

Depreciation is calculated on a straight-line basis over the estimated useful life of the assets

as follows:

2015 2014

Buildings 2.5% – 4% 2.5% – 4%

Notes to and forming part of the nancial statements

For the year ended 31 December 2015

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

Notes to and forming part of the nancial statements

For the year ended 31 December 2015

NOTE 1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(q) Leased assets

Leases of ﬁxed assets, where substantially all the risks and beneﬁts incidental to the ownership

of the asset – but not the legal ownership – are transferred to entities in the consolidated

group, are classiﬁed as ﬁnance leases.

Finance leases are capitalised by recognising an asset and a liability at the lower of the

amounts equal to the fair value of the leased property or the present value of the minimum

lease payments, including any guaranteed residual values. Lease payments are allocated

between the reduction of the lease liability and the lease interest expense for the period.

Leased assets are depreciated on a straight-line basis over the shorter of their estimated

useful lives or the lease term.

Lease payments for operating leases, where substantially all the risks and beneﬁts remain with

the lessor, are recognised as expenses on a straight-line basis over the lease term. Operating

leases are not recognised in the statement of ﬁnancial position.

Lease incentives under operating leases are recognised as a liability and amortised on a

straight-line basis over the life of the lease term.

(r) Impairment

Financial assets

A ﬁnancial asset is assessed at each reporting date to determine whether there is any

objective evidence that it is impaired. A ﬁnancial asset is considered to be impaired if

objective evidence indicates that one or more events have had a negative eﬀect on the

estimated future cash ﬂows of the asset.

An impairment loss in respect of a ﬁnancial asset measured at amortised cost is calculated

as the diﬀerence between its carrying amount and the present value of the estimated future

cash ﬂows discounted at the original eﬀective interest rate. An impairment loss in respect of

an available for sale ﬁnancial asset is calculated by reference to its current fair value.

Individually signiﬁcant ﬁnancial assets are tested for impairment on an individual basis. The

remaining ﬁnancial assets are assessed collectively in groups that share similar credit risk

characteristics.

All impairment losses are recognised in proﬁt or loss. Any cumulative loss in respect of an

available for sale ﬁnancial asset recognised previously in equity is transferred to proﬁt or loss.

An impairment loss is recognised if the carrying amount of an asset or its cash-generating

unit exceeds its recoverable amount. A cash-generating unit is the smallest identiﬁable asset

group that generates cash ﬂows that largely are independent from other assets and groups.

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

NOTE 1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(r) Impairment (continued)

Impairment losses are recognised in proﬁt or loss. Impairment losses recognised in respect

of cash-generating units are allocated ﬁrst to reduce the carrying amount of any goodwill

allocated to the units and then to reduce the carrying amount of the other assets in the unit

(group of units) on a pro rata basis.

Impairment losses recognised in prior periods are assessed at each reporting date for

indication that the loss has decreased or no longer exists. An impairment loss is reversed

if there has been a change in the estimates used to determine the recoverable amount. An

impairment loss is reversed only to the extent that the asset’s carrying amount does not

exceed the carrying amount that would have been determined, net of depreciation or

amortisation, if no impairment loss has been recognised.

(s) Employee Benets

Short-term benets

Liabilities for employee beneﬁts for wages and salaries (including superannuation), annual

leave and long service leave represent present obligations resulting from employees’

services provided to reporting date and are calculated at undiscounted amounts based

on remuneration wage and salary rates that the Group expects to pay as at reporting date

including related on-costs, such as workers compensation insurance and payroll tax.

Other long-term employee benets

The Group’s net obligation in respect of long-term employee beneﬁts is the amount of future

beneﬁt that employees have earned in return for their service in the current and prior periods

plus related on costs. That beneﬁt is discounted to determine its present value and the fair

value of any related assets is deducted. The discount rate is the yield at the reporting date

on Commonwealth Government bonds that have maturity dates approximating the terms of

the Group’s obligations.

(t) Grants

Grants are recognised initially as deferred income when there is reasonable assurance that

they will be received and that the Group will comply with the conditions associated with the

grant. Grants that compensate the Group for expenses incurred are recognised in proﬁt or

loss on a systematic basis in the same periods in which the expenses are recognised.

(u) Parent entity nancial information

The ﬁnancial information for the Parent Entity, as disclosed in Note 26 has been prepared on

the same basis as the consolidated ﬁnancial statements, except as set out below.

Investments in controlled entities

Investments in controlled entities, are accounted for at cost in the ﬁnancial statements of the

Parent Entity. Dividends received from controlled entities are recognised in the Parent Entity’s

statement of comprehensive income.

Notes to and forming part of the nancial statements

For the year ended 31 December 2015

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

Notes to and forming part of the nancial statements

For the year ended 31 December 2015

NOTE 1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(v) New standards and interpretations issued but not yet eective

Reference Title Summary

Application

date

(nancial

years

beginning)

Expected

Impact

AASB

2015-3

Amendments

to Australian

Accounting

Standards

arising from

the Withdrawal

of AASB 1031

Materiality

The Standard completes the

AASB’s project to remove

Australian guidance on materiality

from Australian Accounting

Standards.

1 July 2015 No

expected

impact

AASB

2014-9

Amendments

to Australian

Accounting

Standards –

Equity Method in

Separate Financial

Statements

This amending standard allows

entities to use the equity method

of accounting for investments

in subsidiaries, joint ventures

and associates in their separate

ﬁnancial statements.

1 January

2016

Minimal

Impact

AASB 9

Financial

Instruments

This Standard supersedes

both AASB 9 (December 2010)

and AASB 9 (December 2009)

when applied. It introduces

a “fair value through other

comprehensive income” category

for debt instruments, contains

requirements for impairment of

ﬁnancial assets, etc.

1 January

2018

Minimal

impact

expected

AASB

2014-7

Amendments

to Australian

Accounting

Standards arising

from AASB 9

(December 2014)

Consequential amendments

arising from the issuance of

AASB 9.

1 January

2018

Minimal

impact

expected

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

Notes to and forming part of the nancial statements

For the year ended 31 December 2015

CONSOLIDATED

2015

2014

NOTE 2 REVENUE AND EXPENSES

Revenue

Subscription income 12,435,894 12,065,838

Sales revenue 5,108,041 5,492,765

Commission 1,096,502 1,144,530

Service fee 59,091 50,000

Rent 1,115,175 1,108,515

Advertising -

Australian Medicine

55,655 94,036

Sponsorship 220,872 145,779

Interest 87,751 152,717

Medical fees list revenue 66,813 66,058

AMA House conference facility 3,100 2,700

Dividend income (Note 22) 129 173

Other income

Gain on disposal of property - 3,569,392

Other revenue including recoveries

444,973 252,607

20,693,996 24,145,110

Expenses

Contributions to employee superannuation plans 916,275 883,550

Rental expense on operating leases - 19,131

Other expenses

Direct operating expenses of investment properties (Note 11)

67,869 116,235

Repairs and maintenance 485,632 538,933

Merchant fees 171,522 188,935

Licences and fees 141,769 129,965

Legal fees 75,586 60,222

Other

2,517,239 1,791,683

3,459,618 2,825,973

NOTE 3 AUDITORS’ REMUNERATION

Audit services

Auditors of the Group

RSM Australia Partners

- Audit of ﬁnancial report 59,695 57,910

Other services

Auditors of the Group

RSM Australia Pty Ltd

- Taxation services 61,430 29,996

- Consulting services

38,375 48,120

159,500 136,026

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

CONSOLIDATED

2015

2014

NOTE 4 INCOME TAX

Current tax expense

Current year provision for income tax - (786,914)

Franking credits

- 187

Prior year adjustments 331,426 -

331,426 (786,727)

Deferred tax expense

Origination and reversal of temporary diﬀerence 353,405 130,595

Adjustments for prior years 73,463 (177,655)

426,868 (47,060)

Total income tax expense in income statement 758,294 (833,787)

Loss/(Proﬁt) before income tax 408,287 (4,122,385)

Income tax using the domestic corporation tax rate

of 30% (2014: 30%)

122,486 (1,236,716)

Increase in income tax expense due to:

Mutual expenditure (4,048,272) (3,678,274)

Non-deductible expenses (7,736) (22,145)

Sundry (44,710) (38,435)

(4,100,718) (3,738,854)

Decrease in income tax expense due to:

Mutual income 4,286,265 4,231,523

Fully franked dividends - 187

Intercompany transactions (1,020) 1,020

Proﬁt on sale of property - non assessable - 86,672

Sundry 46,392 36

4,331,637 4,319,438

353,405 (656,132)

Over/(under) provision for prior year - current tax expense 331,426

Over/(under) provision for prior year - deferred tax expense 73,463 (177,655)

Income tax expense 758,294 (833,787)

Attributable to:

Continuing operations 758,294 (833,787)

Notes to and forming part of the nancial statements

For the year ended 31 December 2015

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

Notes to and forming part of the nancial statements

For the year ended 31 December 2015

CONSOLIDATED

2015

2014

NOTE 5 CASH AND CASH EQUIVALENTS Note

Cash at bank 18 8,784,884 4,344,145

Cash on hand 2,007 1,760

Total Cash and cash equivalents 8,786,891 4,345,905

Included in the cash and cash equivalents for 2014 is $534,003 which the AMA, as one of multiple

stakeholders, managed on behalf of the stakeholders of the Private Mental Health Alliance,

Centralised Data Management Service, Private Mental Health Consumer Carer Network (Australia)

and Private Mental Health Alliance Quality Improvement Project. In 2015, new adminstrative

arrangements have been implemented for these 3 activities.

Whilst the AMA still manages the cash and cash equivalents of these 3 activities, cash held no

longer forms part of the AMA’s cash assets. Under these new administrative arrangements

consolidation and separate disclosure of these cash assets is no longer required.

Accordingly the AMA’s cash and cash equivalents no longer include cash held by the PMHA,

CDMS or the Network.

NOTE 6 TRADE AND OTHER RECEIVABLES

Current

Trade receivables 1,349,615 555,349

Impairment losses (10,879) -

1,338,736 555,349

Sale - AMPCo House - 8,387,500

Other receivables 670,851 941,340

Total Trade and other receivables 2,009,587 9,884,189

The movement in allowance for impairment losses during the year was:

Balance at 1 January - 72,433

Impairment loss recognised (10,879) (72,433)

Balance at 31 December (10,879) -

NOTE 7 INVENTORIES

Finished goods 33,930 42,928

Total inventories 33,930 42,928

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

CONSOLIDATED

2015

2014

NOTE 8 PREPAYMENTS

Prepayments 474,577 571,112

Total Prepayments 474,577 571,112

NOTE 9 OTHER INVESTMENTS

Available for sale ﬁnancial assets

Shares in AMA Member Services Pty Ltd 1 1

Total Other investments 1 1

The changes in the fair value of the available for sale ﬁnancial asset has not been accounted for

as it is insigniﬁcant to the Group.

NOTE 10 INTANGIBLE ASSETS

Membership database - at cost 733,325 733,325

Less accumulated amortisation (728,935) (720,083)

4,390 13,242

Website - at cost 55,943 55,943

Less accumulated amortisation (45,556) (39,490)

10,387 16,453

IT Project development - at cost 41,023 20,523

Less accumulated amortisation - -

41,023 20,523

Total Intangible assets 55,800 50,218

Notes to and forming part of the nancial statements

For the year ended 31 December 2015

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

Notes to and forming part of the nancial statements

For the year ended 31 December 2015

CONSOLIDATED

2015

2014

NOTE 10 INTANGIBLE ASSETS (continued)

Movement in carrying amounts:

Consolidated

Membership

database Website IT Projects Total

31 December 2014 $ $ $ $

Opening written down value 30,245 16,968 4,991 52,204

Additions - - 20,523 20,523

Disposals - - (4,991) (4,991)

Amortisation (17,003) (515) - (17,518)

Closing written down value 13,242 16,453 20,523 50,218

31 December 2015

Opening written down value 13,242 16,453 20,523 50,218

Additions - - 20,500 20,500

Disposals - - - -

Amortisation (8,852) (6,066) - (14,918)

Closing written down value 4,390 10,387 41,023 55,800

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

Notes to and forming part of the nancial statements

For the year ended 31 December 2015

CONSOLIDATED

2015

2014

NOTE 11 INVESTMENT PROPERTIES Note

Units 1 and 2 Tourism House – at cost 2,610,408 2,610,408

Add: Net capitalised lease costs 6,732 15,708

Less: Accumulated depreciation (1,906,571) (1,802,154)

Total investment property 710,569 823,962

Movement in carrying amounts:

Consolidated

Units 1 and 2

Tourism House Total

31 December 2014 $ $

Opening written

down value

937,353 937,353

Additions: Capital

leased costs

- -

Expensing of capitalised leased costs 22 (8,976) (8,976)

Depreciation (104,415) (104,415)

Closing written down value 823,962 823,962

31 December 2015

Opening written

down value

823,962 823,962

Additions: Capital

leased costs

- -

Expensing of capitalised leased costs 22 (8,976) (8,976)

Depreciation (104,417) (104,417)

Closing written down value 710,569 710,569

A valuation of units 1 and 2 of Tourism House was performed during February 2015. The valuation was

prepared by Ms Sandra Howells AAPI, Certiﬁed Practising Valuer, of Egan National Valuers (ACT). As at 10

February 2015, Units 1 and 2 of Tourism House were valued at $3,640,000 ($4,935,000 at 13 January 2012). As

this value is in excess of the written down values disclosed above, no adjustment is necessary nor has been

made within the ﬁnancial statements.

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

CONSOLIDATED

2015

2014

NOTE 12 PROPERTY, PLANT AND EQUIPMENT

Leasehold land, AMA House - at cost 1,600,000 1,600,000

Buildings, AMA House - at cost 9,449,482 9,449,482

Add: Net capitalised lease expenditure 123,274 -

Less: Accumulated depreciation (4,724,741) (4,488,504)

4,848,015 4,960,978

Property, Parap Rd, Parap - at cost 381,397 381,397

Less: Accumulated depreciation (44,216) (35,221)

337,181 346,176

Oﬃce furniture - at cost 2,872,910 2,667,478

Less: Accumulated depreciation (2,631,144) (2,572,551)

241,766 94,927

Oﬃce equipment - at cost 266,142 229,165

Less: Accumulated depreciation (179,960) (153,618)

86,182 75,547

Fixtures and ﬁttings - at cost 6,422,607 6,182,543

Less: Accumulated depreciation (2,681,980) (3,499,371)

3,740,627 2,683,172

Motor vehicles - at cost - -

Less: Accumulated depreciation - -

- -

Computer hardware - at cost 358,057 305,764

Less: Accumulated depreciation (258,770) (215,468)

99,287 90,296

Computer software - at cost 205,334 194,532

Less: Accumulated depreciation (159,840) (140,654)

45,494 53,878

Notes to and forming part of the nancial statements

For the year ended 31 December 2015

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

Notes to and forming part of the nancial statements

For the year ended 31 December 2015

CONSOLIDATED

2015

2014

NOTE 12 PROPERTY, PLANT AND EQUIPMENT (continued)

Assets less than $300 - at cost 67,759 68,032

Less: Accumulated depreciation (67,759) (68,032)

- -

Personal computer network - at cost 119,687 119,688

Less: Accumulated depreciation (115,845) (109,632)

3,842 10,056

Total Property, plant and equipment 11,002,394 9,915,030

A valuation of AMA House and the leasehold land on which it stands was performed during

February 2016. The valuation was prepared by Ms Sandra Howells AAPI, Certiﬁed Practising

Valuer, of Egan National Valuers (ACT). As at 10 February 2015 AMA House and the leasehold

land on which it stands were valued at $13,500,000 ($17,885,000 at 6 February 2012). Because

these values are in excess of the written down values disclosed in the ﬁnancial statements, no

adjustment is necessary nor has been made within the ﬁnancial statements.

On the 13 November 2014, AMPCo exchanged contracts for the sale of its property, AMPCo

House. The property was sold for $7,625,000 (excluding GST). Settlement occurred on

8 December 2015. AMPCo paid its bank loan in full with the proceeds from this

sale.

An independent valuation of 2/25 Parap Road, Northern Territory was performed in February

2015 and valued at $420,000. Mr John Falvey, AAPI, Certiﬁed Practising Valuer, of Herron

Todd White, prepared the valuation. As the valuation was in excess of the written down value

disclosed in the ﬁnancial statements, no adjustment is necessary nor has been made within

the ﬁnancial statements.

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

Notes to and forming part of the nancial statements

For the year ended 31 December 2015

NOTE 12 PROPERTY, PLANT AND EQUIPMENT (continued)

Movement in carrying amounts:

Consolidated

Opening

written

down value Additions Disposals Depreciation

Capitalised

lease costs

(Note 22)

Capitalised

lease costs

expensed

Work in

Progress

Closing

witten

down value

31 December 2014 $ $ $ $ $ $ $ $

Property, Clarence St Sydney 4,056,943 - (3,920,018) (136,925) - -

Leasehold land, AMA House 1,600,000 - - - - 1,600,000

Buildings, AMA House 5,202,786 - - (236,237) (5,571) 4,960,978

Property, Parap Rd Parap 355,173 - - (8,996) - 346,177

Oﬃce furniture 146,113 26,208 - (77,397) - 94,924

Oﬃce equipment 72,624 55,252 (34,661) (17,667) - 75,548

Fixture and ﬁttings 597,039 2,156,967 - (70,834) - 2,683,172

Motor vehicles 14,913 - (13,784) (1,129) - -

Computer hardware 62,814 53,507 (368) (25,655) - 90,298

Computer software 35,354 30,794 - (12,270) - 53,878

Assets < $300 - 14,056 - (14,056) - -

Personal computer network 19,599 546 (875) (9,215) - 10,055

12,163,358 2,337,330 3,969,706 610,381 5,571 9,915,030

31 December 2015

Leasehold land, AMA House 1,600,000 - - - - - - 1,600,000

Buildings, AMA House 4,960,978 - - (236,237) 142,919 (19,645) - 4,848,015

Property, Parap Rd Parap 346,177 - - (8,996) - - - 337,181

Oﬃce furniture 94,924 205,433 - (58,592) - - - 241,765

Oﬃce equipment 75,548 36,977 - (26,343) - - - 86,182

Fixture and ﬁttings 2,683,172 1,288,236 (451,223) (209,014) - - 429,455 3,740,627

Motor vehicles - - - - - - - -

Computer hardware 90,298 52,293 - (43,304) - - - 99,287

Computer software 53,878 10,802 - (19,186) - - - 45,494

Assets < $300 - - - - - - - -

Personal computer network 10,055 - - (6,213) - - - 3,842

9,915,030 1,593,741 (451,223) (607,884) 142,919 (19,645) 429,455 11,002,394

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

Notes to and forming part of the nancial statements

For the year ended 31 December 2015

NOTE 13 DEFERRED TAX ASSETS AND LIABILITIES

Deferred Tax Assets Deferred Tax Liabilities Total

Consolidated 2015 2014 2015 2014 2015 2014

$ $ $ $ $ $

Property, plant and equipment 171,804 (61,713) - - 171,804 (61,713)

Accruals 90,599 41,551 - - 90,599 41,551

Employee beneﬁts 121,430 154,613 - - 121,430 154,613

Impairment losses on receivables 3,571 - - - 3,571 -

Other (250) (250) - - (250) (250)

Carried forward losses 173,915 - - - 173,915 -

Total Deferred tax assets/(liabilities) 561,069 134,201 - - 561,069 134,201

Movement in temporary dierences:

Consolidated

Property,

plant and

equipment Accruals

Employee

benets

Ipairment

losses on

receivables Other

Carried

forward

losses Total

$ $ $ $ $ $ $

31 December 2014

Opening written down value (6,300) 14,329 151,592 21,730 (90) - 181,261

Recognised in income

statement

(55,413) 27,222 3,021 (21,730) (160) - (47,060)

Recognised in equity - - - - - - -

Closing written down value (61,713) 41,551 154,613 - (250) - 134,201

31 December 2015

Opening written down value (61,713) 41,551 154,613 - (250) - 134,201

Recognised in income statement 233,517 49,048 (33,183) 3,571 173,915 426,868

Closing written down value 171,804 90,599 121,430 - 3,321 173,915 561,069

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

CONSOLIDATED

2015

2014

NOTE 14 TRADE AND OTHER PAYABLES Note

Trade creditors 477,584 592,390

Other creditors and accruals 2,442,494 2,321,976

Income in advance 513,421 559,691

Total Trade and other payables 18 3,433,499 3,474,057

NOTE 15 INTEREST BEARING LOANS AND BORROWINGS

Current

Bill facility - secured (Note 17) - 1,013,000

Total Interest bearing loans and borrowings 18 - 1,013,000

The loans and borrowings were secured by registered ﬁrst mortgage over land and buildings

located at 277 Clarence Street, Sydney NSW 2000 and a registered equitable mortgage over

the whole of its assets and undertakings including uncalled capital. The mortgages were

discharged and paid out upon settlement of the contract for sale of the property.

NOTE 16 EMPLOYEE BENEFITS

Current

Liability for long service leave 671,118 632,624

Liability for annual leave 469,452 725,585

1,140,570 1,358,209

Non-current

Liability for long service leave 63,264 103,884

Total employee benets 1,203,834 1,462,093

NOTE 17 INCOME TAX PAYABLE

Income tax payable - 246,745

Total Income tax payable - 246,745

The income tax payable for the Group represents the amount of income taxes payable in

respect of current and prior periods.

Notes to and forming part of the nancial statements

For the year ended 31 December 2015

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

Notes to and forming part of the nancial statements

For the year ended 31 December 2015

NOTE 18 FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

Risk management

The Board of Directors, through its Audit and Risk Committee, manages the ﬁnancial risks

relating to the operations of the Group. The Group adopts prudent risk based management

procedures. The Audit and Risk Committee oversees how the Group complies with the Group’s

risk management procedures. The Group does not enter into or trade ﬁnancial instruments for

speculative purposes.

The Group’s activities expose it to the following risks from the use of ﬁnancial instruments:

(a) Credit risk

Credit risk refers to the risk that a counter party will default on its contractual obligations

resulting in ﬁnancial loss to the Group. The Group has adopted the policy of only dealing

with credit worthy counter parties and obtaining suﬃcient collateral or other security where

appropriate as a means of mitigating the risk of ﬁnancial loss from defaults.

The carrying amount of the Group’s ﬁnancial assets represents the maximum credit exposure.

CONSOLIDATED

Note

2015

2014

Cash and cash equivalents 5 8,786,891 4,345,905

Trade and other receivables 6 2,009,587 9,884,189

Available for sale ﬁnancial assets 9 1 1

10,796,479 14,230,095

The Group does not have any signiﬁcant credit risk exposure to any single counterparty or

any group of counterparties having similar characteristics. The carrying amount of ﬁnancial

assets recorded in the ﬁnancial statements, net of any allowances for losses, as disclosed in

Note 6, represents the Group’s maximum exposure to credit risk.

(b) Market risk

Market risk is the risk that changes in market prices such as currency rates, interest rates and

equity prices will aﬀect the Group’s income. The objective of market risk management is to

manage and control market risk exposure within acceptable parameters whilst optimising

the return.

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

NOTE 18 FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued)

(b) Market risk (continued)

(i) Interest risk

At the reporting date the interest rate proﬁle of the Group’s interest-bearing ﬁnancial instruments

was:

CONSOLIDATED

CARRYING AMOUNT

Note

2015

2014

Fixed rate instruments

Financial liabilities

Interest bearing loans and borrowings 15 - (1,013,000)

- (1,013,000)

Variable rate instruments

Financial assets

Cash at bank 8,784,884 4,344,145

5 8,784,884 4,344,145

Fair value sensitivity analysis for xed rate instruments

The Group does not account for any ﬁxed rate ﬁnancial assets and liabilities at fair value through

proﬁt or loss. Therefore a change in interest rates at the reporting date would not aﬀect proﬁt or

loss.

A change of 100 basis points in interest rates would have increased or decreased the Group’s

equity by $0 (2014: $10,130).

Cash ow sensitivity analysis for variable rate instruments

A change of 100 basis points in interest rates would have increased or decreased the Group’s

equity by $87,849 (2014: $43,441). This analysis assumes that all other variables remain constant.

The analysis was performed on the same basis for 2014.

(ii) Currency risk

Currency risk is the risk that the future cash ﬂows of a ﬁnancial instrument will ﬂuctuate because

of changes in foreign currency. The Group’s exposure to currency rate risk is immaterial as the

Group trades predominantly in Australian dollars.

(iii) Equity risk

The Group’s exposure to equity risk is immaterial as the Group does not have signiﬁcant

investments in equity which can ﬂuctuate in price.

Notes to and forming part of the nancial statements

For the year ended 31 December 2015

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

Notes to and forming part of the nancial statements

For the year ended 31 December 2015

NOTE 18 FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued)

Liquidity risk is the risk that the Group will not be able to meet its normal ﬁnancial obligations

as they fall due. The Group manages liquidity risk by maintaining adequate reserves and

banking facilities and by continuously monitoring forecast and actual cash ﬂows.

The following are the contractual maturities of ﬁnancial liabilities; including estimated interest

payments and excluding the impact of netting agreements:

Consolidated Note

Carrying

amount

Contractual

cash ows

6 months

or less

6-12

months

1-2

years

2-5

years

More than

5 years

Non-derivative nancial liabilities

31 December 2014

Trade and other

payables

14 3,474,057 (3,474,057) (3,474,057) - - - -

Bill facility -

secured, ﬁxed at

7.25%

15 1,013,000 (1,021,026) (185,887) (185,277) (372,025) (277,837) -

4,487,057 (4,495,083) (3,659,944) (185,277) (372,025) (277,837) -

31 December 2015

Trade and other

payables

14 3,433,499 3,433,499 3,433,499 - - - -

Bill facility -

secured, ﬁxed at

7.25%

15 - - - - - - -

3,433,499 3,433,499 3,433,499 - - - -

(d) Fair values versus carrying amount

Except as disclosed below, the fair values of ﬁnancial assets and liabilities, are not signiﬁcantly

diﬀerent from the carrying amounts shown in the Statement of Financial Position:

31 December 2015 31 December 2014

Consolidated Note

Carrying

Amount

Fair

Value

Carrying

Amount

Fair

Value

Liabilities carried at amortised cost

Bill facility - secured, ﬁxed at 7.25% 14 - - (1,013,000) (1,029,473)

- - (1,013,000) (1,029,473)

(e) Capital management

The Group maintains a strong funding structure so as to enable it to continue operations

to promote its core objectives. The strong funding structure is maintained through the

optimisation of banking facilities and the preservation of revenue.

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

CONSOLIDATED

2015

2014

NOTE 19 OPERATING LEASES

Leases as lessee:

Non-cancellable operating lease rentals are payable as follows:

Not later than 1 year - 19,131

Later than 1 year but not later than 5 years - -

- 19,131

Leases as lessor:

The Group leases out its investment property under operating leases (see Note 11).

The future minimum rent receivable under non-cancellable leases are as follows:

Investment property:

Not later than 1 year 381,316 498,458

Later than 1 year but not later than 5 years - 373,268

381,316 871,726

Other Property:

Not later than 1 year 509,642 498,458

Later than 1 year but not later than 5 years 1,987,773 373,268

2,497,415 871,726

Total:

Not later than 1 year 890,958 905,683

Later than 1 year but not later than 5 years 1,987,773 1,023,197

2,878,731 1,928,880

The Group has entered into commercial property leases on its investment property and other

property. Tourism House is classiﬁed as an investment property because no member of the

group occupies any ﬂoor area of that property. The lease for that property is under a term of 5

years and nine months, commencing 1 January 2011 and ending 30 September 2016.

Lease payments escalate each year by CPI. The future minimum rent receivable has been

calculated on the assumption that CPI will average 2.25% each year. This estimate is based on

CPI increases from December 2012 to December 2014 and those anticipated for the remainder

of the lease contract. The lease does not contain any contingent rentals.

AMA House is classiﬁed as other property. It is not classiﬁed as an investment property because

the parent entity occupies the 4th ﬂoor. Several leases, for diﬀerent terms, exist over tenancies

within AMA House. Some tenancies were vacant for the full year ended 31 December 2015.

Where there is no certainty that a lease commitment exists or will exist at a point in the future,

no rent receivable has been disclosed. Some leases have ﬁxed percentage annual escalations

and some escalations are linked to CPI.

Notes to and forming part of the nancial statements

For the year ended 31 December 2015

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

Notes to and forming part of the nancial statements

For the year ended 31 December 2015

NOTE 19 OPERATING LEASES (continued)

The future minimum rent receivable has been calculated on the assumption that where

applicable, CPI will average 2.25%. Fixed percentage escalations apply in accordance with existing

lease contracts. CPI of 2.25% is based on CPI increases from December 2012 to December 2014

and those anticipated for the remainder of the lease contract.

During the year ended 31 December 2015, $1,115,175 was recognised as rental income in the

Statement of Comprehensive Income (2014: $1,108,515). Direct operating expenses recognised in

the Statement of Comprehensive Income relating to property was $1,229,231 (2014: $1,193,434).

CONSOLIDATED

2015

2014

NOTE 20 COMMITMENTS

Expenditure commitment:

Not later than 1 year 678,098 23,270

Later than 1 year but not later than 5 years 2,697,364 12,725

3,375,462 35,995

Commitments receivable

Not later than 1 year 34,472 -

Later than 1 year but not later than 5 years 69,699 -

104,171 -

NOTE 21 CONTROLLED ENTITIES

Parent entity

Australian Medical Association Limited n/a n/a

Controlled entities

Australasian Medical Publishing Company Proprietary Limited 1 1

AMA Pty Limited 2 2

AMA Commercial Pty Ltd 2 2

AMA NT Pty Ltd 1 1

Actraint No. 110 Pty Limited 2 2

Doctors Health Services Pty Ltd 1 -

9 8

The controlled entities, Australasian Medical Publishing Company Proprietary Limited, AMA

Pty Limited, AMA Commercial Pty Ltd, AMA NT Pty Ltd and Actraint No. 110 Pty Limited, and

Doctors Health Services Pty Ltd, are incorporated in Australia and are 100% controlled by the

Australian Medical Association Limited.

AMA Pty Limited acts as trustee for the AMA Property Trust. Actraint No. 110 Pty Limited acts as

trustee for the AMA Investment Trust.

The Australian Medical Association Limited owns 100% of units in the AMA Investment Trust.

The AMA Investment Trust owns 100% of units in the AMA Property Trust.

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

CONSOLIDATED

Note

2015

2014

NOTE 22 RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES

(Loss)/Proﬁt for the year (408,287) 3,288,598

Less items classied as investing activities:

Dividends received 2 (129) (173)

Receipts from investment (24,000) (24,000)

Add/(less) non-cash items:

Depreciation and amortisation 727,219 732,314

Bad debt expense 10,879 -

Net proﬁt on sale of non-current assets - 3,664,250

Expensed of capitalised leased costs 11, 12 28,621 14,547

Net movement in provision for employee entitlements (258,259) 111,384

76,044 7,786,920

Changes in operating assets and liabilities:

Decrease/(Increase) - Trade and other receivables 335,260 (8,186,920)

Decrease/(Increase) - Inventories 8,998 (7,843)

(Decrease)/Increase - Trade and other payables (296,696) 1,434,640

(Decrease)/Increase - Provision for tax liabilities (1,339,528) 906,438

Net cash ow from operating activities (457,628) 1,933,235

NOTE 23 DIRECTOR AND EXECUTIVE DISCLOSURE

Transactions with Directors and Key Management Personnel

During the year the Group paid a premium to insure the Directors and Oﬃcers of the Group as

disclosed in the Directors Report.

In addition to remuneration paid to the President and Vice President, the Group also provides

remuneration in the form of Directors’ fees to Directors.

Key Management Personnel are remunerated in the form of salaries or under contract.

Notes to and forming part of the nancial statements

For the year ended 31 December 2015

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

Notes to and forming part of the nancial statements

For the year ended 31 December 2015

CONSOLIDATED

2015

2014

NOTE 23 DIRECTOR AND EXECUTIVE DISCLOSURE (continued)

The Directors and Key Management Personnel compensations are as follows:

Short-term employee beneﬁts 2,501,051 3,498,179

Termination beneﬁts - 65,233

2,501,051 3,563,412

Apart from the details disclosed in this note, no Director has entered into a material contract

with the Group since the end of the previous ﬁnancial year and there were no material

contracts involving Directors’ interests subsisting at year end.

NOTE 24 TRUST FUNDS

The Group manages monies held in trust for a number of funds. The net values of the assets of

those funds are as follows:

2015

2014

The Mervyn Archdall Medical Monograph Fund 23,194 28,387

The Federal Medical War Relief Fund 7,822 13,373

The Federal Independence Fund 4,776 4,658

35,792 46,418

AMA Pty Limited acts as trustee for The Indigenous Peoples’ Medical Scholarship Trust Fund.

The net value of the assets of the Trust at 31 December 2015 is $157,647 (2014: $172,976).

NOTE 25 SUBSEQUENT EVENTS

No matter or circumstance has arisen since the end of the ﬁnancial year to the date of this

report, which has signiﬁcantly aﬀected or may signiﬁcantly aﬀect the operations of the

economic entity, the results of those operations or the state of aﬀairs of the economic entity in

subsequent ﬁnancial years.

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

NOTE 26 COMPANY DETAILS

The Group comprises the parent entity, Australian Medical Association Limited and its

controlled entities, being:

• Australasian Medical Publishing Company Proprietary Limited;

• AMA Pty Limited;

• AMA Commercial Pty Ltd;

• AMA NT Pty Ltd;

• Actraint No.110 Pty Limited; and

• Doctors Health Services Pty Ltd.

The parent entity, the Australian Medical Association Limited, is a company limited by

guarantee, incorporated and domiciled in Australia. The registered oﬃce of the AMA is 4th

Floor, 42 Macquarie Street, Barton ACT 2600. The AMA promotes the interests of the medical

profession in the medico political arena and also in the more general sphere, advocates for

patient health and the health of the community.

Australasian Medical Publishing Company Proprietary Limited is a company limited by

shares, incorporated and domiciled in Australia. The registered oﬃce of this company is

Level 19, Town Hall House, 456 Kent Street, Sydney NSW 2000. This company publishes the

highly recognised and peer reviewed general medical journal,

Medical Journal of Australia

and maintains and operates a comprehensive database containing both member and non-

member information.

AMA Pty Limited is a company limited by shares, incorporated and domiciled in Australia.

The registered oﬃce of this company is 4th Floor, 42 Macquarie Street, Barton ACT 2600.

This company acts as trustee for the AMA Property Trust. The Trust owns, manages and rents

commercial properties in Barton, ACT.

Doctors Health Service Pty Ltd is a company limited by shares, incorporated and domiciled in

Australia. The registered oﬃce of this company is 4th ﬂoor, 42 Macquarie Street, Barton ACT

2600. This company manages the national delivery of a health service for medical practitioners

and medical students.

AMA NT Pty Ltd is a company limited by shares, incorporated and domiciled in Australia. The

registered oﬃce of this company is 4th Floor, 42 Macquarie Street, Barton ACT 2600. This

company purchased a commercial property in Darwin, Northern Territory on 1 February 2011

and provided services to members of the AMA in the Northern Territory from 1 November

2011.

Actraint No 110 Pty Limited is a company limited by shares, incorporated and domiciled in

Australia. The registered oﬃce of this company is 4th Floor, 42 Macquarie Street, Barton ACT

2600. This company acts as trustee for the AMA Investment Trust.

Notes to and forming part of the nancial statements

For the year ended 31 December 2015

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

NOTE 27 PARENT ENTITY

As at, and throughout the ﬁnancial year ended 31 December 2015, the parent company of the

Group was the Australian Medical Association Limited. The following information has been

extracted from the books and records of the parent and has been prepared in accordance with

the accounting standards.

2015

2014

(a) Financial information

Proﬁt for the year 3,584,509 19,751

Total comprehensive income 3,584,509 19,751

The 2015 proﬁt for the year includes a dividend of $3,920,016 from the Australasian Medical

Publishing Company Proprietary Limited.

Statement of nancial position

Assets

Current assets 6,668,357 2,239,363

Non-current assets 10,511,675 9,918,759

Total assets 17,180,032 12,158,122

Liabilities

Current liabilities 1,950,430 1,035,502

Non-current liabilities 14,976 21,710

Total liabilities 1,965,406 1,057,212

Equity

Retained earnings 15,214,626 11,100,910

Total equity 15,214,626 11,100,910

(b) Guarantees

A guarantee provided by the Australian Medical Association Limited in favour of The Council

of the City of Sydney exists for the rent of Australasian Medical Publishing Company Pty Ltd

premises at Town Hall House.

There have been no contractual commitments entered into by the Australian Medical

Association Limited for the acquisition of property, plant or equipment.

(d) Contingent liabilities

There are no contingent liabilities at the reporting date.

Notes to and forming part of the nancial statements

For the year ended 31 December 2015

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

Parent entity

The parent entity of the wholly owned group is Australian Medical Association Limited.

Ownership interest in related parties

Interests held in related parties are as follows:

Name of entity

Class of

shares 2015 2014

% %

Australasian Medical Publishing Company Proprietary Limited

Ordinary

100 100

AMA Pty Limited

Ordinary

100 100

AMA Commercial Pty Ltd

Ordinary

100 100

AMA NT Pty Ltd

Ordinary

100 100

Actraint No 110 Pty Ltd

Ordinary

100 100

Doctors Health Services Pty Ltd

Ordinary

100 -

Notes to and forming part of the nancial statements

For the year ended 31 December 2015

NOTE 28 RELATED PARTY TRANSACTIONS

Parent entities

The wholly owned group consists of Australian Medical Association Limited and its controlled

entities. These entities are Australasian Medical Publishing Company Proprietary Limited, AMA

Pty Limited, AMA Commercial Pty Ltd, AMA NT Pty Limited, Actraint No 110 Pty Limited and

Doctors Health Services Pty Ltd.

The following transactions occurred with related parties:

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

In the Directors’ opinion:

1) the ﬁnancial statements and notes, set out on pages 31 to 64 are in accordance with the

Corporations Act

2001

, and

i) comply with Australian Accounting Standards; and

ii) give a true and fair view of the ﬁnancial position as at 31 December 2015 and of the performance for

the year ended on that date, of the AMA and consolidated Group.

2) there are reasonable grounds to believe that the AMA will be able to pay its debts as and when they

become due and payable.

This declaration is made in accordance with a resolution of Directors dated this 21st day of April 2016.

Prof Brian Owler Dr Elizabeth Feeney

Director Director

Australian Medical Association Limited Australian Medical Association Limited

Directors’ Declaration

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

AUDIT AND RISK COMMITTEE

The Audit and Risk Committee’s core objectives are to provide a link between the Board and its external

auditors, and to review the integrity of ﬁnancial information and the eﬀectiveness of the company’s

internal controls, including the company’s internal audit function.

The Audit and Risk Committee was re-shaped during 2014 following the adoption of a new Constitution,

the establishment of a smaller governance Board, and the appointment of Mr Ed Killesteyn PSM as an

independent member of the Committee.

The Audit and Risk Committee met on four occasions during 2015.

The Committee’s activities throughout the year focused on several key activities:

• risk management;

• ﬁnancial performance; and

• work health and safety.

Risk management was a signiﬁcant component of each meeting during 2015. The Committee

conducted a comprehensive assessment of the Association’s internal controls, regularly reviewed the

AMA Risk Register, established a risk assurance plan, and then distributed requests for proposals from

several external service providers for Internal Audit Services and for Risk Management Services.

The Committee also considered ongoing progress addressing the recommendations of the WHS

Workplace Inspection Report and the WHS Management System Audit completed in February 2015 by

an independent WHS consultant.

The outcome of the 2014 audit of the ﬁnancial reports of the Australian Medical Association Limited

and its controlled entities and for Australasian Medical Publishing Company Proprietary Limited for

31 December 2014 and the recommendations made by the auditors on accounting procedures and

internal ﬁnancial reporting processes were considered at the April 2015 meeting. Unqualiﬁed Audit

reports were issued for both ﬁnancial reports.

The December 2015 meeting focused particularly on the 2015 audit, including:

• the auditor’s annual arrangement letter for the 2015 audit;

• the auditor’s Audit Strategy for the year ending 31 December 2015; and

• proposed fraud risk assessment.

Dr Iain Dunlop

Chair

Committee

Lists

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

AUDIT AND RISK COMMITTEE

Dr Iain Dunlop Chair – Board Member

Dr Leonie Katekar Board Member (until December)

Dr Ed Killensteyn PSM Independent Member

Dr Helen McArdle Board Member (from December)

TESTIMONIAL

“One of the reasons the AMA mattered to me personally

was when my particular craft group was under threat

from government changes, government fee changes,

which would have compromised the quality of services

we could have provided for patients ... the AMA was

the body that had the entree to talk to the Minister and

argue on our behalf. There was nobody else who could

have done what the AMA did, and what it always does,

advocating for better public policy on health and its

other activities.”

Dr Beverley Rowbotham

Haematologist, Queensland

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

AMA COUNCIL OF DOCTORS IN TRAINING

In February 2015, AMACDT released the results of the 2014 AMA Specialist Trainee Survey. The survey

revealed responsiveness to instances of bullying and harassment, feedback, appeals and remediation

processes, and that training costs are ongoing issues for trainees. This informed AMA advocacy on

vocational training throughout the year.

The AMA brought together medical leaders from across the profession at a Roundtable to address

workplace bullying and harassment. Following this, the AMA decided to develop speciﬁc policy on

sexual harassment and review existing policy on bullying and harassment. AMACDT agreed to lead

this work, which culminated in new and updated policy on sexual harassment, workplace bullying and

harassment, ﬂexible work arrangements, and safe work environments.

AMACDT was delighted to have the former Prime Minister, Julia Gillard, speak at its Leadership

Development Dinner at AMA National Conference in May. The AMACDT policy session on the future of

GP training at National Conference led to the development of a vision statement for general practice

training that emphasises the value of general practice training.

AMACDT has continued to advocate for more prevocational and vocational training places to ensure

medical graduates can progress to full specialist qualiﬁcation, and receive a high quality relevant

medical training experience. In particular, the Medical Intern Review accepted many of the AMA’s

recommendations to adopt an incremental approach to reform of the internship year. Towards the end

of 2015, the Federal Government also announced funding for additional specialist training places, as well

as for 240 rural GP rotations for interns.

The Council has continued to provide representatives to more than 30 diﬀerent committees and

working groups that focus on medical education and training. Council members have also presented

at a number of conferences. The AMACDT would like to thank the many doctors in training who have

contributed to the Council’s work during 2015.

Dr Danika Thiemt

Chair

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

AMA COUNCIL OF DOCTORS IN TRAINING

Dr Danika Thiemt Chair – Federal Council

Dr Julian Grabek Deputy Chair (until April)

Dr John Zorbas Western Australia* (until December)

Dr Chris Wilson Western Australia*

Dr Nushin Ahmed Australian Capital Territory

Dr Thomas Crowhurst South Australia (until December)

Dr Robert Marshall Northern Territory* (until September)

Dr Andrew Webster Northern Territory* (from October)

Dr Gabrielle Diplock Northern Territory*

Dr Chris Mulligan New South Wales (until September)

Dr Kate Kearney New South Wales (from October)

Dr Alistair Park Tasmania

Dr Bavahuna Manoharan Queensland (until June)

Dr Malcolm Forbes Queensland (from July until December)

Dr Bernadette Wilks Victoria (until June)

Dr Enis Kocak Victoria (from July)

Mr James Lawler Australian Medical Students’ Association Representative (until December)

*Co-chairs/Alternating members

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

ETHICS AND MEDICO-LEGAL COMMITTEE

In 2015, the Ethics and Medico-Legal Committee (EMLC) updated medico-legal guidelines on disclosing

medical records to third parties conducting independent medical assessments, and addressed potential

conﬂicts of interest in owning a pharmacy.

The AMA’s

Position Statement on Medical Professionalism

was revised, setting out the values and skills

the profession and society expects of doctors.

The EMLC launched the review of AMA policy on euthanasia and physician assisted suicide in November

by providing members with an opportunity to express their views. A comprehensive member

engagement strategy was developed to accompany the ongoing review into 2016.

To support members working in end of life care, the AMA passed a resolution advocating nationally

consistent legislation protecting doctors from civil or criminal liability when, in accordance with good

medical practice, they:

• administer or prescribe medical treatment at the end of life with the intention of relieving pain or

distress that may have an incidental eﬀect of hastening death; and

• withhold and/or withdraw life sustaining measures which are of no medical beneﬁt to the patient.

Following on from a very successful 2015 AMA National Conference policy session on stewardship of

health care resources, the EMLC has been developing a guide for individual doctors on how to practise

and promote eﬀective stewardship in the workplace.

Media and advocacy focussed on a broad range of ethics issues including palliative care, advance care planning,

organ donation, protecting the medical neutrality of health care workers in conﬂict zones, stewardship of health

care resources, assisted reproductive technologies and the AMA’s opposition to capital punishment.

On the corporate front, policies were developed to guide the AMA in making ethical investment

decisions and when undertaking commercial and funding relationships relevant to doctorportal.

Dr Michael Gannon

Chair

ETHICS AND MEDICOLEGAL COMMITTEE

Dr Michael Gannon Chair – Federal Council

Dr Helen McArdle Federal Council

Dr Alexandra Markwell Queensland

Dr Chris Moy Federal Council

Ms Danielle Pannacio Australian Medical Students’ Association Representative (until April)

Mr Matthew Rubic Australian Medical Students’ Association Representative (from May)

Mr Andrew Took AMA New South Wales policy advisor

Dr Bernadette Wilks Council of Doctors in Training Representative (until May)

Dr Choong-Siew Yong New South Wales

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

AMA COUNCIL OF GENERAL PRACTICE

During 2015, the AMA Council of General Practice (AMACGP) continued to work hard in the interests

of GPs and their patients by providing leadership, advice and guidance on key policy issues aﬀecting

general practice and primary health care.

The year began with the AMA continuing its strong campaign against the Government’s proposed

introduction of a 10 minute threshold for Level B MBS consultations, a $5 cut to patient rebates for GP

consultations, the Government’s ﬂawed co-payment model and the extension of the Medicare rebate

freeze until 2018. This pressure ultimately saw the Government abandon most of these measures.

However, the rebate freeze remains and the AMA continues to prosecute the case for indexation to be

restored.

The AMACGP developed and revised a number of position statements during the year, including:

Fundholding; Ten Minimum Standards for Medical Forms; the Medical Home; General Practice Nurses;

and

Primary Health Networks

. In addition, the AMACGP contributed to a range of key AMA submissions.

Other key areas of work for the AMACGP included:

• providing strong input into the Primary Health Care Review by calling for further investment in

general practice;

• ﬁnalising a model for integrating pharmacists into general practice in collaboration with the

Pharmaceutical Society of Australia;

• providing input into a number of consultative processes on prevention and management of chronic

disease;

• exploring potential areas for greater private health insurance involvement in primary care;

• providing input into the Government’s GP training reforms, advocating for retention of the

apprenticeship model for GP training and strong professional control; and

• coordinating Family Doctor Week 2015, which strongly promoted the central role of GPs in the health

system.

The AMACGP, having provided signiﬁcant input to the After Hours Review and the Medicare Locals

Review in previous years, also welcomed the return of after hours funding to the Practice Incentive

Program and the replacement of Medicare Locals with Primary Health Networks from 1 July 2015.

Dr Brian Morton AM

Chair

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

AMA COUNCIL OF GENERAL PRACTICE

Dr Brian Morton AM Chair – Federal Council

Dr Richard Kidd Queensland (until May), Federal Council (from June) and Deputy Chair

Dr Bernard Pearn-Rowe Western Australia and Convenor

Dr Tony Bartone Federal Council

Dr Peter Beaumont Northern Territory

Dr Richard Choong Federal Council

Dr Chris Clohesy South Australia (until January)

Dr Suzanne Davey Australian Capital Territory

Dr Dilip Dhupelia Queensland (from September)

Mr Brian Fernandes Observer – Australian Medical Students’ Association Representative

Associate Professor

John Gullotta AM

Federal Council

Dr Cathy Hutton Victoria

Dr Michael Levick Victoria (until June)

Dr Kean-Seng Lim New South Wales

Dr Danielle McMullen Council of Doctors in Training Representative

Dr Patricia Montanaro Federal Council (until May), South Australia (from June)

Dr Annette Newson South Australia (from June)

Dr David Rivett OAM New South Wales and Observer - Council of Rural Doctors

Dr Shaun Rudd Queensland

Dr Anne Wilson Tasmania

Dr Stephen Wilson Western Australia

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

AMA HEALTH FINANCE AND ECONOMICS COMMITTEE

The Health Finance and Economics (HFE) Committee has carriage of AMA policy on the economic and

clinical impact of health care ﬁnancing and funding arrangements in Australia, including public hospital

funding; private health insurance; the Medicare Beneﬁts Schedule; and the Pharmaceutical Beneﬁts

Scheme.

In February, HFE developed policy opposing any cuts to MBS fees or rebates and opposing the

Government’s freeze on the indexation of rebates. HFE also deﬁned policy on patient co-payments,

making clear that the AMA is not opposed to a patient contribution to the cost of their medical care, but

opposes the introduction of co-payments for Medicare services without regard to individual patient’s

circumstances.

HFE developed policy against the Government’s decision to restrict its future funding for public

hospitals to CPI indexation and population growth only. The Committee agreed that activity based

funding systems should continue to be used to monitor activity of the public hospital sector on a

nationally consistent basis, complemented with measures of quality, outcome and performance of

public hospital services.

Other activities included discussion of the health ﬁnancing and clinical implications of the Reform of

the Federation process and associated possible broad health reform options. How to measure health

outcomes and possible issues involved for clinicians was also a focus for HFE.

HFE developed new policy for the AMA Fees List by not including clinical indications that have not been

identiﬁed by a formal assessment process but are used to limit access to MBS rebates for other reasons.

HFE received presentations from the College of Radiologists on the Quality Framework for Diagnostic

Imaging, and from the Australian Commission on Safety and Quality in Health Care on the release of the

ﬁrst Australian Atlas of Healthcare Variation.

HFE discussed the need for improved accountability of private health insurance arrangements and

agreed that an AMA private health insurance report card should include information on all health

insurance providers and their hospital cover products, with a table showing ‘no gap’ beneﬁts for a

sample of common medical procedures.

Professor Brian Owler

Chair

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

AMA HEALTH FINANCE AND ECONOMICS COMMITTEE

Professor Brian Owler Chair - Federal Council

Dr Stephen Parnis Deputy Chair – Federal Council

Dr Richard Choong Federal Council

Dr Janice Fletcher Federal Council (from June)

Dr Brad Horsburgh Federal Council

Associate Professor Je Looi Federal Council

Dr Andrew Miller Federal Council

Dr Brian Morton AM Federal Council

Associate Professor David Mountain Federal Council

Associate Professor Sue Neuhaus Federal Council

Associate Professor Robert Parker Federal Council

Dr Beverley Rowbotham Federal Council

Dr Shaun Rudd Federal Council (until June)

TESTIMONIAL

“The AMA is a powerful voice for general practice by

virtue of the things that they do for the community,

especially for doctors and patients and lobbying

governments. The AMA is highly skilled in dealing with

the media. Sometimes it is appearing on TV or the radio

or being quoted in the newspaper. Other times it is

backgrounding and explaining to journalists what the

issues are and making sure they report correctly on the

issues.”

Dr Brian Morton AM

GP, New South Wales

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

AMA MEDICAL PRACTICE COMMITTEE

The Medical Practice Committee develops AMA policy and strategies on issues that impact on medical

practice including: medicines/devices and their regulation; private health insurance; e-health; pathology

and diagnostic imaging; practitioner regulation and non-medical scopes of practice; safety and quality;

medical services fees; medical indemnity; and medical care for the elderly and people with disabilities.

The Committee met four times via videoconference and face-to-face on 9 February, 11 April, 9 July, and

10 October, as well as progressing work via email.

Early in the year, the focus was on aged care issues, ﬁnalising a new Position Statement on palliative

care and revising the existing Position Statement on the use of restraint in the care of older people. An

AMA survey of members working with patients in residential aged care facilities informed the strategic

priorities.

Throughout the year, the Committee provided critical guidance to the AMA on private health

insurance issues such as advice on insurer gap arrangement conditions, plastic and reconstructive

surgery deﬁnitions, and hospital contracts with non-payment for ‘avoidable events’ clauses. The AMA’s

submission to the ACCC on private health insurance anti-competitive practices provided detailed,

real-life examples of insurer activities adversely aﬀecting on doctors’ practices and their patients. The

submission was based on members’ responses to a survey conducted in January. The Committee also

provided advice on the content and focus of an annual AMA report card on private health insurance to

begin in 2016, prompted by ongoing negative member experiences and increasingly aggressive insurer

activities.

Committee members represented the AMA on numerous external groups covering topics such as

e-health, aged care, antimicrobial resistance, and non-medical practitioner prescribing.

Associate Professor Robyn Langham

Chair

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

AMA MEDICAL PRACTICE COMMITTEE

Associate Professor Robyn Langham Chair – Federal Council

Dr Michael Gannon Federal Council

Dr Julian Grabek Council of Doctors in Training Representative (until July)

Associate Professor Tim Greenaway Federal Council

Associate Professor John Gullotta Federal Council

Professor Mark Khangure Federal Council

Dr Richard Kidd Federal Council

Dr Patricia Montanaro Federal Council (until June)

Dr Chris Moy Federal Council

Dr Gino Pecoraro Federal Council

Dr Richard Whiting Federal Council

Dr John Zorbas Council of Doctors in Training Representative (from August)

TESTIMONIAL

“I got involved with the AMA because of advocacy and

the ability to work with key stakeholders at the State

level, like our health department in making sure that our

RMO recruitment campaign runs relatively seamlessly,

that all the training issues that come up at the State level

can get addressed appropriately, and also making sure

that when we go to negotiate our work contracts and

awards that the junior doctor voice is very loudly heard

and continues to be loudly heard.”

Dr Bavahuna Manoharan

Surgical Trainee, Queensland

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

AMA MEDICAL WORKFORCE COMMITTEE

The AMA Medical Workforce Committee (MWC) was formed in late 2014 and is responsible for

developing new and revising existing AMA policies on:

• medical training and education;

• medical workforce planning;

• recruiting and retaining medical practitioners; and

• the corporatisation of medical practice and its implications for the medical workforce.

In April, the AMA released the Community Residency Program for Junior Medical Oﬃcers. This is the

AMA’s proposal to the Commonwealth Government to establish and fund a program for high-quality

prevocational placements in general practice for junior doctors. The model was developed by the

MWC to replace the valuable Prevocational General Practice Placements Program abolished by the

Government in 2014.

During the year we revised the

Position Statement on International Medical Graduates

to reﬂect the

changes over the past decade to how they are recruited, assessed and trained, as well as the growth

in local graduate numbers. We also worked with the AMA Council of Doctors in Training to revise the

Position Statement on Medical Training in Expanded Settings.

Other important areas of work undertaken by the Committee during the year were:

• preparing the AMA’s submission to the Department of Health on potential reforms to the Specialist

Training Program, the important workforce program that gives specialist trainees the opportunity to

train in settings outside traditional metropolitan teaching hospitals;

• pushing for the National Medical Training Advisory Network to make greater progress in workforce

modelling for each specialty; and

• leading the AMA’s advocacy for changes to medical school selection criteria and the structure of

courses to address rural workforce shortages as an alternative to opening new medical schools.

Dr Stephen Parnis

Chair

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

AMA MEDICAL WORKFORCE COMMITTEE

Dr Stephen Parnis Chair – Federal Council

Dr Tony Bartone Federal Council

Dr Elizabeth Gallagher Federal Council

Professor Gary Geelhoed Federal Council

Dr Bradley Horsburgh Federal Council

Dr Omar Khorshid Federal Council

Mr James Lawler Australian Medical Students’ Association Representative

Dr Helen McArdle Federal Council

Dr Andrew Mulcahy Federal Council

Dr Saxon Smith Federal Council

Dr Danika Thiemt Council of Doctors in Training Representative

Dr Chris Zappala Federal Council

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

AMA COUNCIL OF RURAL DOCTORS

Recognising the importance of rural health care, and the special needs of doctors working in these

areas, the AMA established a Special Interest Group for rural doctors, together with a Council of Rural

Doctors (AMACRD), in 2015. The AMA Rural Medical Committee (AMARMC) was elevated to become the

AMA Council of Rural Doctors.

The change means that there is now an AMA Federal Councillor with full voting rights. Rural doctors can

also elect to be part of the newly formed special interest group.

This year has been a period of transition for the Council, with the Chair and members of the previous

AMARMC being appointed to the AMACRD until the 2016 National Conference and Annual General

Meeting.

A key issue in 2015 was the Government’s introduction of a new rural classiﬁcation system, the Modiﬁed

Monash (MM) model. The MM replaced the ﬂawed Australian Standard Geographical Classiﬁcation –

Remoteness Areas (ASGC-RA) rural classiﬁcation.

The AMA had lobbied hard for this change, which means that rural incentives will now be better

targeted. The AMACRD provided advice on the application of the MM model to the redesigned General

Practice Rural Incentives Programme (GPRIP) that came into eﬀect from 1 July 2015, the ﬁrst program to

use the new classiﬁcation system.

Other key areas of work in 2015 included:

• continuing to advocate for policies to encourage doctors to work in rural and remote Australia;

• ongoing review of the AMA/Rural Doctors Association of Australia Rural Workforce Rescue Package;

• providing input into the Primary Health Care Review on rural health speciﬁc issues;

• supporting the development of policy and advocacy including AMA proposals for a Community

Residency Program, regional training networks, and rural generalist training pathways;

• providing input into AMA policy on the establishment of Primary Health Networks and GP training

reforms; and

• keeping a watch on the Government’s Rural and Regional Teaching Infrastructure Grants program

implementation.

Dr David Rivett OAM

Chair

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

AMA COUNCIL OF RURAL DOCTORS

Dr David Rivett OAM Chair – New South Wales

Ms Sophie Alpen Australian Medical Students’ Association Representative

Dr Leonie Katekar Northern Territory

Associate Professor Peter Maguire Western Australia

Dr Gerard McGushin Tasmania (until April)

Dr Rachael Purcell Council of Doctors in Training Representative

Dr Shaun Rudd Queensland

Dr Nigel Stewart South Australia

Dr Joseph Tam Victoria

Dr Geo White OAM New South Wales

TESTIMONIAL

“Being a part of the AMA, even as a student, makes me

feel as if my voice matters. Through the AMA, I have been

oered invaluable experiences to network and meet,

not only doctors who are making great change, but also

those that inspire and motivate me to be the best I can

be. By being a student member of the AMA, I have access

to irreplaceable careers and training advice.”

Rebecca Nathan

Medical Student, New South Wales

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

AMA COUNCIL OF SALARIED DOCTORS

The AMA Council of Salaried Doctors (AMACSD) represents salaried doctors working in a variety of

settings, particularly the public hospital sector. The AMACSD receives input from State and Territory

AMAs, as well as the Australian Salaried Medical Oﬃcers Federation (ASMOF).

In 2015, the AMACSD reviewed Rights of Private Practice (RoPP) across Australia, and developed

resources and information for members. The Committee also recognised the need to address growing

concerns about the safety of doctors, and undertook a review of the Position Statement on the

Personal

Safety and Privacy for Doctors

. These will be ﬁnalised in early 2016.

The Committee reviewed the

Position Statement on Hospitalists 2008

. This Statement focuses on

support for hospital doctors, and the need to grow postgraduate training positions, while not

undermining the role of the general physician.

The AMACSD recognised the work of the AMA and ASMOF in industrial entitlements, particularly

regarding Senior Medical Oﬃcer (SMO) contracts in Queensland. The Committee welcomed news

that the collective bargaining rights of Queensland SMOs were restored in 2015 by the Queensland

Government.

The AMACSD supported work addressing bullying and harassment in the medical workforce. This is a

vital issue in the context of salaried doctors and the hospital environment. We have also been heavily

involved in developing the AMA

Position Statement on Sexual Harassment in the Medical Workplace

This provides all medical practitioners with a framework for appropriate behaviour and responses to

harassment.

After many years of uncertainty over its future, the Government announced in the 2015-16 Budget

that it would introduce a cap of $5000 on Fringe Beneﬁts Tax concessions for salary sacriﬁced meal

entertainment and entertainment facility hiring expenses from 1 April 2016. The AMA had successfully

argued against the withdrawal of this entitlement in many previous reviews and was heavily critical of

the decision when it became public.

Other key items discussed by AMACSD, in concert with ASMOF entities, included a range of industrial

issues and negotiations at State, Territory, and Commonwealth levels, and the Reform of the Federation

White Paper.

Dr Roderick McRae

Chair

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

AMA COUNCIL OF SALARIED DOCTORS

Dr Roderick McRae Chair - Federal Council

Dr Tobias Angstmann Australian Capital Territory

Dr Barbara Bauert Northern Territory

Dr Stuart Day Tasmania

Dr Sue Ieraci New South Wales

Dr John Murray Queensland

Dr Stephen Parnis Federal Council

Dr Andrew Russell South Australia

Dr Tony Ryan Western Australia

Dr Tony Sara Australian Salaried Medical Oﬃcers Federation (ASMOF)

Dr Danika Thiemt Council of Doctors in Training Representative

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

AMA TASKFORCE ON INDIGENOUS HEALTH

In 2015, the Taskforce on Indigenous Health revised the AMA

Position Statement on Aboriginal

and Torres Strait Islander Health

, which was last revisited in 2005. The updated Position Statement

emphasised the social determinants of health and their importance in reducing health inequalities

between Aboriginal and Torres Strait Islander people and other Australians.

The Taskforce made a signiﬁcant contribution to the 2015 AMA

Indigenous Health Report Card

, which

was launched in November by the Federal Minister for Rural Health, Senator Fiona Nash. The Report

Card focused on the impacts of incarceration on the health of Aboriginal and Torres Strait Islander

people and called on the Federal Government to set a national target for closing the gap in the rates of

imprisonment between Indigenous and non-Indigenous people.

Each year, the Taskforce oversees the awarding of the AMA Indigenous Peoples’ Medical Scholarship to

an Indigenous student studying medicine at an Australian university. The Scholarship aims to increase

the number of Aboriginal and Torres Strait Islander doctors in Australia by supporting Indigenous

students to complete a medical degree. The 2015 Scholarship was awarded to Ms India Latimore from

the University of Newcastle.

Applications for the 2016 Indigenous Peoples’ Medical Scholarship opened on 1 November 2015. To

ensure that the Scholarship can continue to support Indigenous medical students, the AMA is exploring

new avenues of donation from private sector and philanthropic organisations.

The AMA continued its support for the Close the Gap campaign in 2015, and remains a committed and

active member of the Close the Gap Steering Committee.

A new member was also welcomed to the Taskforce, with Dr Kali Hayward joining as the new adviser

from the Australian Indigenous Doctors’ Association.

Professor Brian Owler

Chair

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

AMA TASKFORCE ON INDIGENOUS HEALTH

Professor Brian Owler Chair – Federal Council

Dr Paul Bauert Northern Territory

Ms Lisa Briggs Proxy - National Aboriginal Community Controlled Health

Organisation (from November)

Mr Matthew Cooke Adviser – National Aboriginal Community Controlled Health

Organisation (from November)

Mr Brian Fernandes Australian Medical Students’ Association Representative

Dr Elizabeth Gallagher Federal Council

Dr Noel Hayman Queensland

Dr Kali Hayward Adviser – Australian Indigenous Doctors’ Association (from

September)

Dr Tammy Kimpton Adviser – Australian Indigenous Doctors’ Association (until

September)

Associate Professor Robyn Langham Federal Council

Dr Robert Marshall Council of Doctors in Training Representative

Associate Professor Brad Murphy Adviser – Royal Australian College of General Practitioners

Associate Professor Robert Parker Federal Council

Professor Ian Ring New South Wales

Dr David Scrimgeour South Australia

Ms Kate Thomann Proxy – Australian Indigenous Doctors’ Association

Associate Professor Mark Wenitong Adviser – National Aboriginal Community Controlled Health

Organisation (until November)

Dr Lara Wieland Queensland

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

AMA WORKING GROUP ON HEALTH CARE OF ASYLUM SEEKERS

AND REFUGEES

AMA Federal Council convened a Working Group for the revision of the

Position Statement on the

Health Care of Asylum Seekers and Refugees

. In the four years since the AMA released its ﬁrst Position

Statement, the health care and wellbeing of those seeking asylum in Australia had changed signiﬁcantly.

AMA delegates passed an urgency motion at the 2015 AMA National Conference requesting Federal

Council review its policy as a priority.

The Working Group agreed that the revised Position Statement should:

• be framed around health and the health impacts;

• make the position current to legislation since the position was written;

• include a section speciﬁc to mothers and babies;

• include asylum seekers and refugees with disabilities; and

• include a background section to strengthen the AMA position and provide evidence.

The AMA position has been adjusted to reﬂect legislation and reports that have been released on the

topic, with the new position building on the previous one. The revised policy includes a number of new

statements, and expansion on a few of the existing statements. The Position Statement now includes a

background paper outlining Australia’s international obligations to provide appropriate health care.

The AMA position is based on a fundamental ethical principle: that all people seeking health

care, including asylum seekers and refugees in Australia, or under the protection of the Australian

Government, should be able to access appropriate services and be treated with compassion, respect,

and dignity.

Additionally, the AMA held a Round Table on 3 September, to discuss the health issues of asylum seekers

and refugees, and to further develop AMA advocacy.

AMA Federal Council approved the revised Position Statement on 21 November, and it was launched on

23 December.

Associate Professor Robert Parker

Chair

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

AMA WORKING GROUP ON HEALTH CARE OF ASYLUM SEEKERS AND REFUGEES

Associate Professor Robert Parker Chair – Federal Council

Professor Elizabeth Elliot New South Wales

Dr Kate Kearney Council of Doctors in Training Representative

Dr Richard Kidd Federal Council

Mr James Lawler Federal Council

Associate Professor Susan Neuhaus Federal Council

Dr Stephen Parnis Federal Council

Associate Professor Karen Zwi New South Wales

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

AMA WORKING GROUP ON CLIMATE CHANGE AND HUMAN HEALTH

AMA Federal Council convened a Working Group for the revision of the

Position Statement on Climate

Change and Human Health

. The scientiﬁc evidence surrounding climate change and its relationship

with health had advanced since the 2008 statement, requiring major revisions drawing on this new

evidence.

The Working Group had its ﬁrst teleconference in June, and agreed that the Position Statement should

draw on current evidence, be framed around health and the health impacts, build on the expertise of

the medical profession, and be mindful of AMA member views on this topic.

The Working Group agreed to survey the membership for their opinions regarding some diﬃcult aspects

of the Position Statement and formulated the questions for the survey. The survey was sent out to

members on 12 June.

Greater weight was given to the health beneﬁts of climate mitigation and adaptation policies and

addressing climate change through international process, given the purpose of the review.

Three new points were included in the Position Statement regarding promotion and planning of

mitigation and adaptation strategies, advocating for disinvestment from fossil fuels and advocating

for the Government to proactively develop specialised programs to help workers displaced by

decarbonisation of the global economy.

AMA Federal Council approved the revised Position Statement on 22 August, and it was launched on

28 August.

The AMA used the updated Position Statement to call on the Australian Government to take strong

leadership at the United Nations Climate Change Conference in Paris in November.

Dr Stephen Parnis

Chair

AMA WORKING GROUP ON CLIMATE CHANGE AND HUMAN HEALTH

Dr Stephen Parnis Chair – Federal Council

Professor Kingsley Faulkner Chair of Doctors for the Environment Australia

Professor Gary Geelhoed Federal Council

Dr Rachael Purcell Council of Doctors in Training Representative

Dr Saxon Smith Federal Council

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

AMA WORKING GROUP ON END OF LIFE

The AMA End of Life Working Group was formed to develop core areas for AMA advocacy in end of life

care. The Working Group focused its activities on:

• improving access to palliative care across the health spectrum from within the community through

to the hospital sector by recognising its multi-disciplinary nature, increasing palliative care in medical

education, vocational training and CME and ensuring appropriate resourcing;

• increasing the use of advance care directives (ACDs) and advance care plans (ACPs) through

promoting better community acceptance of death and dying, discussing ACDs and ACPs earlier in

life, improving their access in emergency situations and harmonising relevant laws; and

• promoting a cultural change within the medical profession where doctors accept that death is not a

failure of medicine. This also involves improving the profession’s understanding of disease trajectories,

including when treatment is futile as well as supporting doctors in having good quality end of life

care discussions with patients and their families.

Throughout the year, AMA representatives held ongoing discussions with Palliative Care Australia (PCA)

to highlight these core areas and identify opportunities for collaboration; for example, supporting PCA’s

National Palliative Care Week in May, and promoting the theme ‘Talking About Dying Won’t Kill You’ in

Family Doctor Week media.

The AMA continued to promote the message that everyone, old and young, sick or healthy, should talk

about death and dying and make plans for their end of life care, through

Australian Medicine

articles

and general media releases throughout the year.

These issues were raised, along with broader end of life care issues, during a range of face-to-face

meetings with various Parliamentarians, and through a presentation to the 13th Australian Palliative Care

Conference.

Dr Stephen Parnis

Chair

AMA WORKING GROUP ON END OF LIFE

Dr Stephen Parnis Chair – Federal Council

Professor Georey Dobb Western Australia

Dr Sonia Fullerton Victoria

Dr Richard Kidd Federal Council

Dr Chris Moy Federal Council

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

AMA WORKING GROUP ON METHAMPHETAMINE

In 2015, Federal Council noted increasing concern about the impact crystal methamphetamine

was having on individuals and hospitals. Federal Council convened a small Working Group on

Methamphetamine for the purposes of updating the AMA’s

Position Statement on

Methamphetamine –

2008.

Increasing public concern about methamphetamine, including the increasing popularity of crystal

methamphetamine, saw the issue become very topical in 2015. As a result, there was a Joint

Parliamentary Inquiry into Crystal Methamphetamine as well as a dedicated National Ice Taskforce. The

Committee attended and represented the AMA at the hearing for Joint Parliamentary Inquiry into Crystal

Methamphetamine.

From the outset, Working Group members agreed that the updated Position Statement should

incorporate a distinct focus on the health impacts of methamphetamine use, as well as the major

impacts on hospitals and health workers, particularly relating to violence, security, and staﬀ safety.

The health care sector was highlighted as an integral part of any solution, and excessive focus on law

enforcement was viewed as unhelpful. Both improved access to treatment, and reducing drug demand

were emphasised as needing to be more heavily funded and promoted.

Much of the activity undertaken by the Working Group was via email. However, the Working Group also

convened three teleconferences to canvass and discuss signiﬁcant matters for the Position Statement,

including the expanded reference to treatment and rehabilitation. Given its highly topical nature,

Working Group members were also invited to provide feedback on relevant submissions and AMA

media commentary on methamphetamine.

Federal Council considered and approved the updated

Position Statement on

Methamphetamine – 2015

at its meeting in August. The Position Statement was publicly launched on 3 September, and was well

received.

Associate Professor David Mountain

Chair

AMA WORKING GROUP ON METHAMPHETAMINE

Associate Professor David Mountain Chair – Federal Council

Dr Tony Bartone Federal Council

Professor Gary Geelhoed Federal Council

Associate Professor Rob Parker Federal Council

Dr Ionana Vlad Western Australia

Dr John Zorbas Council of Doctors in Training Representative

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

AMA WORKING GROUP ON TOBACCO AND E-CIGARETTES

A brief public statement was developed on e-cigarettes in 2014. This activity was overseen by a small

Working Group, chaired by Dr Stephen Parnis. This statement was revisited and slightly amended in

April 2015 to acknowledge material issued by the National Health and Medical Research Council around

the evidence relating to e-cigarettes.

At its meeting in May, Federal Council established a Working Group to oversee a review of the AMA

Position Statement on Tobacco Smoking – 2005

. It was also agreed by Federal Council that the updated

statement would incorporate policy statements relating to e-cigarettes.

The Working Group held one face-to-face meeting and two teleconferences. Members of the Working

Group agreed that the updated Position Statement should incorporate increased reference to smoking

and social disadvantage, including smoking and pregnancy. The Working Group also agreed to reﬁne

the AMA’s position around smoking on television and ﬁlm. Amendments were made to the statement

to reﬂect contemporary tobacco control issues, as well as acknowledging the progress that has been

made, including implementation of plain tobacco packaging. The format of the Position Statement was

changed, with a view to making it easier for AMA spokespeople to use.

The Working Group provided the updated

Position Statement on Tobacco Smoking and E-Cigarettes -

2015

to Federal Council for consideration during their meeting in November. The Position Statement

was approved and it was publicly launched in December. Despite a lack of strong supporting evidence,

the role of e-cigarettes in smoking cessation remains contested. As this is an area of emerging research,

the Working Group has agreed to revisit the Position Statement should the evidence warrant it.

Dr Saxon Smith

Chair

AMA WORKING GROUP ON ECIGARETTES 2/12/2014  28/5/2015

Dr Stephen Parnis Chair – Federal Council

Associate Professor John Gulotta Federal Council

Associate Professor David Mountain Federal Council

Dr Helen McArdle Federal Council

Dr Saxon Smith Federal Council

AMA WORKING GROUP ON TOBACCO AND ECIGARETTES

Dr Saxon Smith Chair – Federal Council

Dr Kate Kearney Council of Doctors in Training Representative

Dr Richard Kidd Federal Council

Mr Matthew Lennon Australian Medical Students’ Association Representative

Dr Chris Moy Federal Council

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

During 2015, the Public Health section and the Secretariat worked to continue the AMA’s

advocacy work. The Secretariat convened working groups to oversee the updating of a number

of Position Statements to ensure the AMA’s public health positions reect contemporary policies

and practices.

POSITION STATEMENTS

Obesity

In September, a Working Group was established to revise the

Position Statement on Obesity

. Its

members are Dr Richard Kidd (Chair), Dr Tony Bartone, Dr Christopher Zappala, and Dr Danika Thiemt.

Obesity is a leading risk factor for poor health, and combating it requires the participation of

governments, non-government organisations, the health and food industries, the media, employers,

schools, and community organisations. The revised Position Statement will emphasise the importance

of increased nutritional literacy, particularly among parents.

Domestic and Family Violence

In November, Federal Council formed a Working Group to oversee the

Position Statement on Domestic

and Family Violence.

The members are Professor Brian Owler (Chair), A/Prof Robyn Langham, Dr Chris

Moy, Dr Gino Pecoraro, and Dr Danika Thiemt.

The revised Position Statement will focus on the health of people, particularly women and children,

experiencing domestic violence, and the role of medical practitioners in addressing and assisting them.

It will include issues such as mandatory reporting, referral pathways for medical practitioners, and

organisations that can assist patients experiencing domestic violence.

Alcohol and FASD

The Secretariat is producing a supplementary

Position Statement on Foetal Alcohol Spectrum Disorder

(FASD)

. The adverse eﬀects of FASD are far-reaching – aﬀecting families, the health care system, the social

service system, the criminal justice system, and the education and employment systems. Australia lags

behind other countries in its response to FASD, and the AMA believes that any attempt to tackle it must

occur within a comprehensive approach to reduce harmful drinking across the population.

Public Health is engaging with the Foundation for Alcohol Research and Education (FARE) on alcohol and

pregnancy, FASD and the on-going promotion of the

Women Want to Know

campaign, which encourages

health professionals to routinely discuss alcohol and pregnancy with women, and to provide advice

consistent with the NHMRC’s

Australian Guidelines to Reduce Health Risks from Drinking Alcohol.

Public

Health

Report

AUSTRALIAN MEDICAL ASSOCIATION – ANNUAL REPORT 2015

Concussion in Sport

The AMA and the Australian Institute of Sport (AIS) partnered on a joint

Position Statement on Concussion in

Sport

and website, following growing concern in Australia and internationally about the incidence of sport-

related concussion and potential health ramiﬁcations for athletes, from the part-time recreational athlete to

the full-time professional.

The Position Statement summarises the most contemporary evidence-based information, presenting it in a

useable format for a broad range of stakeholders. It ensures that athlete safety and welfare remains the point

of focus for all organisations and individuals dealing with concussion in sport.

Combat Sport

In August, the AMA released a revised

Position Statement on Combat Sport

. Combat sport includes any sport,

martial art or activity in which the primary objective of participants is to strike, kick, hit, grapple with, throw or

punch one or more participants. These sports are a public demonstration of interpersonal violence which is

unique among sporting activities.

The AMA opposes all forms of combat sport. The Position Statement recommended banning boxing from

the Olympic and Commonwealth Games, and that media coverage of combat sport be subject to control

codes similar to those applying to television screening of violence. At the November Federal Council meeting,

a clariﬁcation was added, noting that some sports that may be deemed ‘combat’ do not involve ‘winning’

through blows to the head or inﬂicting injuries on an opponent.

Blood Borne Viruses (BBV)

In December, the Federal Government announced a funding package of $1 billion over ﬁve years to subsidise

a range of breakthrough medicines to treat hepatitis C, replacing the previous PBS subsidised treatments.

General practitioners will be able to prescribe these antiviral medications in, or following, consultation with a

specialist physician, who can also prescribe these medicines.

The Commonwealth has recognised that people in custodial facilities are a priority population for treatment

of hepatitis C, and has agreed to fund the cost of these medicines for prisoners through the PBS. State and

Territory health and justice departments will put in place processes to ensure prisoners are prescribed and

provided with these medicines. The revised

Position Statement on Blood Borne Viruses (BBV)

will reﬂect these

signiﬁcant medical innovations and the way BBVs can be prevented, managed and treated.

Indigenous Health

The Taskforce on Indigenous Health revised the

Position Statement on Aboriginal and Torres Strait Islander

Health.

The revision of this Position Statement was timely ahead of the 10th anniversary of the Close the Gap

campaign in 2016.

The

2015 Report Card on Indigenous Health

called on the Government to set a national target for closing

the health and imprisonment gaps between Indigenous and non-Indigenous people. It was launched on

November 25 by Professor Owler and Federal Rural Health Minister Fiona Nash.

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On September 10, Professor Owler and other AMA representatives met with the Law Council of Australia (LCA)

to discuss opportunities for joint advocacy to address Indigenous incarceration rates. As part of this joint

advocacy, Professor Owler participated in a panel discussion at the LCA’s Indigenous Incarceration symposium

on November 26.

The AMA Indigenous Peoples’ Medical Scholarship 2015 was awarded to Ms India Latimore from the University

of Newcastle. The AMA is exploring new avenues of donation from private sector and philanthropic

organisations to ensure the Scholarship can continue to support Indigenous medical students in the future.

Throughout 2015, the AMA continued its support for the Close the Gap campaign and remains a committed

and active member of the Close the Gap Steering Committee.

ADVOCACY

Autism

Throughout the year, AMA representatives met Autism Spectrum Disorder (ASD) advocacy bodies to discuss

the role of medical practitioners, and GPs in particular, in supporting families aﬀected by ASD. There were

also preliminary discussions around addressing the delays many families encounter when seeking a formal

diagnosis of ASD. In 2016, the AMA will host a meeting of relevant medical stakeholders to look at possible

improvements to the process.

E-cigarettes

Federal Council convened a Working Group, chaired by Dr Parnis, to develop a brief AMA statement on

e-cigarettes that could be easily updated in light of new evidence. In March, the CEO of the National Health

and Medical Research Council (NHMRC) issued a statement that comprehensively covered the evidence on

e-cigarettes.

Professor Owler also wrote to the Health Minister, the Treasurer and the Assistant Minister for Health, calling

for the introduction of laws prohibiting the advertising of e-cigarettes, enforcement of laws prohibiting the

advertising of e-cigarettes as a therapeutic good, and banning the marketing of e-cigarettes to people aged

under 18 years of age.

Physical Activity

The AMA worked with peak organisations in the health and physical activity sector, including the Heart

Foundation, the Confederation of Australian Sport, and Cycling Promotion Australia, to identify priorities for

action and opportunities for collaboration.

Dr Parnis was a keynote speaker at the

Move More, Sit Less!

National Physical Activity Consensus Forum at

Parliament House in September, and an opinion piece he wrote was published in

The

Canberra Times

October. Both were well received.

Building on this, Dr Parnis wrote to the Health Minister inviting her to partner with the AMA in writing to the 565

local councils in Australia, asking them to highlight the low-and no-cost physical activities available in their own

jurisdictions. This letter highlighted the need to improve health outcomes for Australians who do not live in capital

cities and who may not have access to the same range of opportunities for physical activity as city dwellers.

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Road Safety

Professor Owler’s advocacy for the

Don’t Rush

campaign has allowed the Public Health section to build closer

ties with the automotive industry and road safety stakeholders. As well as campaigning on driver behaviour –

speeding and fatigue – the AMA has been collaborating with the Australasian New Car Assessment Program

(ANCAP) and the Australasian College of Road Safety (ACRS) to inform and advocate for measures which save

lives and prevent road trauma.

On August 12, Professor Owler launched the

Avoid the crash, Avoid the trauma

campaign at Parliament House.

The campaign called on politicians, the car industry, and all road users to join the push for adoption of new

technologies such as Autonomous Emergency Braking (AEB) to make cars safer and save lives.

The AMA also met with the Australian Automobile Association and the Federal Chamber of Automotive

Industries to pursue further opportunities to work together. Professor Owler delivered a keynote speech to

the Australasian Road Safety Conference at the Gold Coast on October 16. ACRS described the speech as a

“powerful presentation”, and it garnered national media coverage. At this Conference, the AMA became a

signatory to the Declaration for Trauma Free Roads.

The AMA has also updated its website to include a webpage on road safety, linking to the Fitness to Drive

standards and a whiplash toolkit.

WMA General Assembly 2015

The AMA provided input into past President Dr Steve Hambleton’s presentation to the World Medical

Association (WMA) conference in Moscow in October. Dr Hambleton subsequently provided a report on the

WMA conference and the Public Health section will follow up on some of the areas. The AMA also undertook

the initial revision of the WMA Council Resolution on implementation of the WHO Framework Convention on

tobacco control.

Energy Drinks

Dr Hambleton made contact with the Public Health section regarding consultations being undertaken by the

Toronto Health Board in relation to banning the sale of energy drinks to those aged 19 years and younger.

The AMA wrote to the Toronto Health Board, conﬁrming the health concerns associated with energy drink

consumption among children and young people and noted the AMA’s position that sales should be restricted

to those aged under 18 years.

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SUBMISSIONS AND CONSULTATION

Plain Tobacco Packaging Submission

In March, the AMA made a submission to the Commonwealth Department of Health’s

Post Implementation

Review of Tobacco Plain Packaging.

It reiterated the AMA’s continued support for plain packaging, particularly

as emerging evidence suggests that it reduces the appeal of cigarette packs to young people, it emphasises

the graphic health warnings, and it also encourages smokers to consider quitting.

Joint Parliamentary Committee on Law Enforcement –

Inquiry into Crystal Methamphetamine

In June, the AMA lodged a submission to the Parliamentary Inquiry into Methamphetamine Use. While the

Inquiry was broadly focused on law and order responses, the AMA’s submission described the health impacts

of methamphetamine use and the resulting impacts on health care provision. It argued that the response to

crystal methamphetamine must be balanced - ie. law and order strategies with health strategies. A/Prof David

Mountain appeared via teleconference before the Inquiry.

A/Prof Robyn Langham also represented the AMA at targeted consultations undertaken by the National Ice

Taskforce as part of the development of the National Ice Action Strategy.

AMA consultation on the National Alcohol Strategy 2016-2021

Health Outcomes International (HOI) was commissioned by the Commonwealth Department of Health to

conduct stakeholder consultations to inform development of the

National Alcohol Strategy (NAS)

2016-2021.

Dr Parnis was interviewed as the AMA’s representative by HOI in October. He provided an overview of the

AMA’s concerns about alcohol and reiterated the position contained in the

Position Statement

and

Alcohol

Summit Communique

. The AMA also provided a written submission to HOI.

AMA submission on the

National Drug Strategy 2016-2025

The AMA’s submission on the draft

National Drug Strategy 2016-2025

noted Australia was falling further

behind in reducing the harm from alcohol, tobacco and other drug use, and that the policy and regulatory

responses to these challenges needed to be strengthened and well-coordinated. The submission noted the

increasing demand for drug and alcohol treatment and rehabilitation services, and reiterated the AMA’s view

that addiction to drugs or alcohol was primarily a health issue. The AMA’s submission recommended the

addition of targets and goals as a way to measure progress.

The AMA attended the Intergovernmental Committee on Drugs (IGCD) Stakeholder forum in November

which provided an opportunity to work collaboratively with other stakeholders in identifying opportunities to

reduce the impact of alcohol and other drugs.

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Social Services Legislation Amendment (No Jab, No Pay) Bill

The AMA submission to the Senate Community Aﬀairs Legislation Committee inquiry into the

Social Services

Legislation Amendment (No Jab, No Pay) Bill 2015

supported measures to increase immunisation rates among

children, including the very real possibility that some parents would reconsider their anti-immunisation stance

in light of becoming ineligible for some Centrelink payments.

The submission highlighted the need to closely monitor the data in order to measure eﬀectiveness and

whether there continued to be geographic pockets of lower immunisation rates (including those in more

aﬄuent areas). The submission also noted the need to closely monitor whether vulnerable children were

being removed from childcare or preschool as a result of the measure. The submission called for full funding

of catch-up vaccinations, and recommended any savings resulting from the measure be invested into research

and other activities that seek to further increase immunisation rates.

Dr Richard Kidd represented the AMA at the Committee’s public hearing in Brisbane on November 2.

Parliamentary Joint Committee on Law Enforcement –

Inquiry into

illicit tobacco

In December, the AMA made a submission to the

Inquiry into illicit tobacco

. The submission noted the AMA’s

recently updated policy position and statement on

Tobacco Smoking and E-Cigarettes

The AMA reiterated its support for measures that seek to reduce the trade in, and consumption of, illicit

tobacco and warned that a lack of action has the potential to undermine Australia’s world leading stance on

tobacco control.

Tackling Alcohol-Fuelled Violence Legislation Amendment Bill 2015

The AMA made a submission to the Queensland Government’s Legal Aﬀairs and Community Safety

Committee inquiry into the

Tackling alcohol-fuelled violence Legislation Amendment Bill 2015

. The AMA

welcomed this initiative as a measure that seeks to reduce Australia’s culture of binge drinking. The AMA

noted that reduced availability and access to alcohol will have positive impacts on the health system and on

the broader community. Reducing the availability of alcohol via lockouts and designated last drink times, as

well as restriction on the availability of takeaway alcohol, should noticeably reduce the incidence of alcohol-

related violence.

The Role of the International Health Regulations in the Ebola Outbreak

and Response

The AMA was invited to provide a submission on the Role of the International Health Regulations in the

Ebola Outbreak and Response. The AMA played a highly visible and active role in public debate in Australia

during the Ebola crisis. The AMA was a strong advocate for an immediate response from Government and

was critical of delays in sending qualiﬁed and trained personnel to West Africa. The submission noted that

Professor Owler took a lead role in calling for an urgent response from the Government and led the advocacy

for sending medical and logistical support, not just ﬁnancial assistance.

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Medicinal Cannabis Submission

The AMA submission to a Senate inquiry into the

Regulator of Medicinal Cannabis Bill 2014

opposed the

introduction of a separate regulator of medicinal cannabis. The Bill, proposed by Senator Di Natale, would

have established a system for regulating medicinal cannabis, distinct from the current Therapeutic Goods

Administration processes, and proposed a process for accrediting medical practitioners to prescribe medicinal

cannabis.

The AMA’s submission stated that medicinal cannabis should be treated consistently with other medicines,

and therefore should not have a separate process for regulation. It also noted concerns with proposals that

medical practitioners provide ‘authorisation’ for patients and their carers.

Dr Parnis met with Senator Di Natale to discuss the AMA’s submission. The Coalition Government has

subsequently indicated its intention to introduce legislation covering the cultivation and supply of

medicinal cannabis.

Commercial Television Code of Practice Submission

Free TV Australia, the industry body representing commercial free to air television, undertook consultations on

a proposed update of the current Commercial Television Code of Practice, which regulates television content

in accordance with community standards. A number of amendments were proposed, the most signiﬁcant for

the AMA being the relaxation of restrictions on alcohol and gambling advertising.

The AMA submission argued against any expansion in the times alcohol products and gambling services

could be advertised on television. Unfortunately, the recently released revised Code is likely to increase the

exposure of children and young people to alcohol and gambling advertising.

Pertussis Vaccination for Pregnant Women – Correspondence

Following the death of a newborn infant from pertussis, there was increased interest in how best to protect

infants too young to be vaccinated. The Australian Technical Advisory Group on Immunisation (ATAGI)

recommended pregnant women be vaccinated in their third trimester. This advice was included in the 10th

Edition of the

Immunisation Handbook.

Some jurisdictions fund pertussis vaccination for pregnant women, but not all, and it is not always well

promoted. Professor Owler wrote to the Health Minister encouraging her to work towards listing the pertussis

vaccine for pregnant women on the National Immunisation Program (NIP).

The Minister responded, indicating that due to the lack of a sponsored application to the Pharmaceutical

Beneﬁts Advisory Committee (PBAC), the vaccine could not be considered for the NIP. However, the Minister

did note that all pregnant women, except for those living in Tasmania, would soon have access to the

pertussis vaccine through State-funded initiatives.

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AMA Submission to Senate Standing Committee on Economics -

Inquiry into Personal Choice and Community Impacts

The AMA provided a written submission to the

Inquiry into Personal Choice and Community Impacts

informally known as the ‘nanny state’ inquiry. The submission explained the importance of public health

measures and why some measures need to be implemented in ways that appear to restrict personal choice.

The submission contained formal support for a range of measures relating to alcohol, tobacco use and cycling

helmets.

The AMA argued that doctors treat those aﬀected by poor decision-making on a daily basis, and that

providing this type of care made medical professionals strong supporters of public health measures that seek

to reduce harms. The submission noted that governments are uniquely placed in their ability to inﬂuence and

regulate people’s behaviour on a much larger scale than individual doctors.

Health Star Rating Advisory Committee

Professor Geoﬀ Dobb participated in a number of Health Star Rating Advisory Committee meetings to discuss

issues including:

• reﬁnement of the Health Star Rating (HSR) calculator;

• a report from the Australia and New Zealand Ministerial Forum on Food Regulation;

• major retailers agreeing to use the HSR on their own branded products;

• updates on the HSR social media campaign;

• implementation of the HSR in New Zealand; and

• consideration of anomalies.

The number of products carrying the Health Star Rating labelling has signiﬁcantly increased. The Heart

Foundation of Australia is undertaking an evaluation of the labelling, but preliminary research suggests that

this food labelling approach is assisting consumers to compare products and make healthier food choices.

Brieng papers/talking points

The Public Health section provided brieﬁngs or talking points on:

• asylum seekers and health;

• air quality and human health;

• climate change and health;

• Indigenous health issues; and

• methamphetamine.

Simon Tatz

Manager, Public Health

AUSTRALIAN MEDICAL ASSOCIATION – PUBLIC HEALTH REPORT

42 Macquarie Street Barton ACT 2600

Telephone: 02 6270 5400 Facsimile: 02 6270 5499

Email: [email protected]