Annual Report 2021 1

ANNUAL

REPORT

2021

contents

Australian Medical Association

Annual Report 2021

Editor: Jane Faure-Brac, Federal AMA

Graphic Design: Clair McDonald

PRESIDENT’S REPORT 4

CHAIR OF THE BOARD’S REPORT 6

STRATEGIC PLAN 2020 – 2023 8

LEADERSHIP 10

COVID-19 RESPONSE REPORT 13

ADVOCACY HIGHLIGHTS 19

COVID-19 VACCINE NO FAULT INDEMNITY SCHEME 20

AGED CARE REFORM 21

PROTHESES LIST REFORM 22

BONDED MEDICAL PROGRAM ADVOCACY 23

CLIMATE CHANGE ADVOCACY 24

PRIORITISING CHILD HEALTH 25

AMA ADVOCACY 26

2021 KEY WINS 27

RESEARCH AND REFORM UNIT 33

AMA AT WORK 35

MEMBERSHIP 39

MEDIA REPORT 40

AMA SUBSIDIARIES 44

FINANCIAL REPORT 45

54 Australian Medical Association

For most of the last year, I’ve conducted my Presidency from within the

closed border of Western Australia. COVID-19 has disrupted the lives of

so many, and for me it has meant a very dierent method of fullling my

obligations to AMA members.

While inconvenient for me, COVID-19

has caused a massive disruption for

the usual work of doctors. Interruption

of regular care during lockdowns,

suspension of surgery as hospitals

pivoted to COVID-19 care, and the

scale of the COVID-19 vaccine program

have stretched doctors to their

limits. Two years into the pandemic,

I don’t know a doctor who is not

pandemicfatigued.

Aware to these pandemic-caused

pressures, the AMA in the last twelve

months has delivered tangible

pandemic management outcomes

that have eased the COVID-19 load of

the medical profession. Specically,

theAMA:

• proposed and secured a

no fault COVID-19 vaccine

indemnityscheme.

• secured permanent telehealth to

enable ongoing General Practice

and other Specialist patient access

by phone and video.

• improved funding arrangements

for General Practice to deliver the

COVID-19 vaccine scheme.

My Vice President Dr Chris Moy and

I have additionally used the power

of the AMA’s advocacy voice to keep

COVID-19 government decision

making honest. We’ve seen elective

surgery suspensions lifted after AMA

advocacy, just as we’ve seen public

health measures adjusted in response

to AMA advocacy.

Beyond COVID-19, our advocacy focus

has delivered much more as you

will read in these pages, including a

strengthening of the operation of the

prostheses list, with Health Minister

Greg Hunt implementing the AMA’s

proposal over that of others who

sought a Diagnosis Related Groups

(DRG) pricing framework and relief to

participants of the Bonded Medical

Placement program, who in the

absence of the AMA would have had

massive nancial penalties imposed.

In a new approach for AMA advocacy,

I have led the establishment of three

key campaigns that are currently

underway in 2022.

The rst to commence was

#Sickly-Sweet, an initiative aimed at

reduction in consumption of sugary

beverages by targeting the general

public with obesity health messages

and proposing to the Federal

Government a sugary beverage tax.

The second was Clear the hospital

logjam. For years, the AMA has

reported on overcrowded public

hospitals. This new campaign seeks

changes to Federal funding of State

and Territory run hospitals in return

for States also lifting their funding

and performance obligations. The

campaign has placed public hospital

funding rmly on the national agenda,

and momentum for a new national

funding agreement is unstoppable.

The third aims to improve resourcing

of primary care. Our Modernise

Medicare initiative responds to the

failure of the Federal Government to

fund the Ten-Year Plan for Primary

Care and the long known nancial

sustainability pressures that confront

General Practice.

As I approach the nal phase of

my own Presidency, I thank the

AMA Federal Council who have met

more often than usual during the

pandemic to inform policy responses

to the arrival of new virus variants

and the frequent disruptions that

medical practice has encountered.

Federal Council Chair A/Prof Julian

Rait has steered the Council expertly

through a dicult period.

I thank the Board of AMA Ltd, who

have hauled in our expenditure while

enabling the Federal Secretariat to

approach their work on campaigns

and health economics in new and

innovative ways. AMA Ltd Board Chair

A/Prof Rosanna Capolingua is to be

commended on her leadership during

a period where the Board has been

unable to meet in person.

I thank our Federal Secretariat sta

in Canberra, who have worked to

support me in my role, despite us

rarely being in the same room. I thank

Dr ChrisMoy, who has worked harder

than any AMA Vice President before

him and has become a regular cut

through voice on TV and radio news.

Most of all, I thank every AMA member

for your support of our profession.

The AMA ghts for every doctor, but

it can only do so with the support of

AMAmembers.

Dr Omar Khorshid

Federal President

Australian Medical Association Limited

DR OMAR KHORSHID

Federal AMA President

President’s

report

‘We’ve seen elective

surgery suspensions

lifted after AMA

advocacy, just as we’ve

seen public health

measures adjusted

in response to AMA

advocacy.’

Annual Report 2021

Annual Report 2021 76 Australian Medical Association

The relevance of the AMA to doctors and patients was proven once

again over the last year. As the medical profession worked through the

second year of COVID-19, the AMA fought for the interests of the medical

profession and used its voice to give condence to a worried public on

navigating the pandemic.

The AMA President Dr Omar Khorshid

and Vice President Dr Chris Moy

have worked tirelessly and at great

personal toll to ensure the Federal

Government’s pandemic response

was evidence based, put patients

rst and supported doctors in their

front-line role. Dr Khorshid and

DrMoy, for the benet of all doctors

alike, negotiated and secured the

COVID-19 vaccine no fault indemnity

scheme, the embedding of telehealth

in the Medicare Benets Schedule

(MBS), and evolving arrangements

for the MBS to cement the role of

General Practice in the COVID-19

vaccineprogram.

The AMA President additionally

refreshed the method by which

the AMA advocates on behalf of

its members, by initiating three

campaigns seeking to:

• Modernise Medicare in order

to restore General Practice’s

nancialsustainability;

• Clear the hospital logjam by having

the Federal Government increase

its funding contribution to State

and Territory run public hospitals;

and

• tax sugary beverages to

reduce obesity through the

#Sickly-Sweetinitiative.

These campaigns are working, and will

inform how the AMA can strengthen its

advocacy for doctors.

The President and Vice President,

together with the AMA Federal Council,

Federal Board and Federal Secretariat

sta, have carried out their work

on behalf of AMA members despite

pandemic roadblocks. Closed state

borders, travel restrictions, work from

home directions and the reality of

mandatory isolation and virus infection

have not hampered the AMA’s work.

Increased technology use, exible

working arrangements and media

via Zoom has in fact made the AMA

moreecient.

To support the needs of AMA

members, the Association’s

organisational capacity has been

in a process of reform over the

last year. Our Federal Secretariat

has bedded down its three teams

of Policy, Advocacy and Corporate

Services. Within the Advocacy Team

inparticular:

• the Research and Reform Unit

has informed much of the

President’sadvocacy;

• the Fees List service has been

refreshed; and

• campaigns are being delivered with

the support of the Information

Technology Unit.

A/PROF ROSANNA CAPOLINGUA

Chair, AMA Ltd Group of Companies

chair of the board’s

report

The Association’s three main

subsidiaries have also been subject to

reform over the last year:

• the Australasian Medical Publishing

Company (AMPCo) transitioned the

Medical Journal of Australia (MJA)

from its previous printed format to

dierent online options;

• Doctors Health Services Pty Ltd

secured Commonwealth resources

to implement the Every Doctor,

Every Setting initiative to promote

better mental health of doctors and

medical students; and

• Doctor Portal Learning was

transitioned to the ownership

of AMA WA to ensure continued

access of all AMA members to

online professional development

and potential future access to the

AMA as a CPD Home.

The reforms of the Federal Secretariat

and its three main subsidiaries have

seen the AMA achieve eciencies in

forecast expenditure growth.

The 2020 decision of the AMA Ltd

Board to reduce its recurrent costs by

one fth has been achieved, perhaps

best demonstrated by the decision to

reduce AMPCo rented accommodation

and relocate the Federal Secretariat to

new premises that deliver rental cost

savings of more than a third.

Reforms, plus travel cost savings

arising from COVID-19, have allowed

the AMA Group of companies to

report consolidated comprehensive

income of $2.5 million for the year.

This result well positions the AMA to

continue its work for members.

To the members of the AMA Ltd Board

and its Committees, I extend my

gratitude as Chair. Not having been

able to meet in person has been less

than ideal, but good governance has

been made possible by the input of

Directors virtually.

To the AMA and AMPCo sta teams

in Canberra and Sydney, I commend

you for your eorts, particularly during

the three long stints of work from

home of the last twelve months. But

to our President and Vice President

in particular, your eorts on behalf of

the AMA through possibly its busiest

period ever have been heroic.

Every member of the AMA can know

the AMA has fought for you and

your patients over the last year, and

delivered outcomes that had it not

been for the AMA would not have

been achieved.

A/Prof Rosanna Capolingua

Chair,

AMA Ltd Group of Companies

‘The 2020 decision

of the AMA Ltd

Board to reduce

its recurrent costs

by one fth has

been achieved.’

Annual Report 2021 98 Australian Medical Association

Strategic Plan

2020-2023

Leading Australia’s Doctors,

Promoting Australia’s Health

VALUE FOR

MEMBERS

 Membership benets measured by

satisfaction survey

 Harmonised federal and state and

territory communication

 Deeper transparency on advocacy

through annual report

 Expand member digital participation in

shaping policy

 Response to individual member issues,

measured by reporting on member

problem resolutions

FOCUSED

ADVOCACY

 Create a long-term vision for Australia’s

health system

 Focused campaigns targeting

improvements for doctors, patients, and

Australia’s health care system

 Council, Taskforce and Committee annual

advocacy plans informed by patients

 AMA brand enhancement; growth in

media share of voice

 Costed proposals coinciding with Federal

Budget cycle

 Planned capability for unforeseen threats

to eective health care provision

 Leading collaborations with strategic

partners, measured by eecitveness

ofpartnership

IMPROVED

FEDERATION

 Focus on nationally relevant advocacy;

Board review of resource allocation

 Operations funded by available revenues,

measured against annual nancial targets

 Investment income preserved for future,

measured against annual nancial targets

 Growing commercial subsidiaries,

measured by contribution to AMA

revenues

 Plan for future non-member income

 Social and economic responsibility across

the AMA against Board targets

 Improved Secretariat capability for

member outcomes

 Streamlined roles: federal focus on

national advocacy. State and territories

delivery of federation advocacy

campaigns

 Enable member jurisdictional industrial

coordination

 Jurisdictional expertise delivering shared

services and shared member benets in

the federation

 Respectful, trusting, collaborative culture

across federation. Measured by annual

survey of state and territory presidents

andCEOs.

 Determine accountabilities of federal,

state, and territory bodies

EFFECTIVE &

EFFICIENT

OPERATIONS

Annual Report 2021 1110 Australian Medical Association

LeadershiP

DR HELEN MCARDLE DR KATE KEARNEY DR GARY SPECK

DR OMAR KHORSHID

President

DR CHRIS MOY

Vice President

A/PROF GINO PECORARO

Chair

A/PROF WILLIAM TAM DR STEPHEN GOURLEY

DR ANTONIO DI DIO DR BAVAHUNA MANOHARAN

A/PROF ROSANNA CAPOLINGUA

Deputy Chair

AMA LTD BOARD UNTIL 27 MAY 2021

FEDERAL COUNCIL FROM 1 AUGUST 2020

Dr Omar Khorshid President

Dr Chris Moy Vice President

Associate Professor Julian Rait Federal Council Chair

Associate Professor Gino Pecoraro Board Chair

AREA NOMINEES

Dr Michael Bonning NSW/ACT

Dr Dilip Dhupelia QLD

Dr Michelle Atchison SA/NT

Dr Annette Barratt TAS

Dr Eugenie Kayak VIC

Dr Katharine Noonan WA

SPECIALTY GROUP NOMINEES

Dr Andrew J Miller Anaesthetists

Dr Chris Baker Dermatologists

Dr Sarah Whitelaw Emergency Physicians

Prof Steve Robson Obstetricians and Gynaecologists

Dr Peter Sumich Ophthalmologists

Dr Sarah Coll Orthopaedic Surgeons

Dr Paul Bauert Paediatricians

Dr Daniel Owens Pathologists

Dr Matthew McConnell Physicians

A/Prof Jerey Looi Psychiatrists

Dr Brendan Adler Radiologists

Prof Owen Ung Surgeons

PRACTICE GROUP REPRESENTATIVES

Dr Mohamed Hash Abdeen Council of Doctors in Training

Dr Richard Kidd Council of General Practice

Dr Marco Giuseppin Council of Rural Doctors

A/Prof Julian Rait Council of Private Specialist Practice

Dr Roderick McRae Council of Public Hospital Doctors

STATE NOMINEES

Prof Walter Abhayaratna ACT

Dr Danielle McMullen NSW

Dr Chris Perry QLD

Dr John Williams SA

A/Prof Robert Parker NT

Dr Helen Mcardle TAS

Dr Enis Kocak VIC

Dr Mark Duncan-Smith WA

AIDA REPRESENTATIVE

Dr Tanya Schramm

AMSA REPRESENTATIVE

Ms Sophie Keen

ASMOF REPRESENTATIVE

Prof Georey Dobb

12 Australian Medical Association

COVID-19 RESPONSE

REPORT

2021 would be the year COVID vaccines came to Australia.

Delivering them would be the biggest public health

undertaking in Australian history.

DR KATE KEARNEY DR GARY SPECKDR JESSICA DEAN

DR OMAR KHORSHID

President

DR CHRIS MOY

Vice President

A/PROF ROSANNA CAPOLINGUA

Chair

A/PROF WILLIAM TAM DR RUTH KEARON

AMA LTD BOARD FROM 28 MAY 2021

DR STEPHEN GOURLEY

Deputy Chair

DR ANTONIO DI DIO DR BAVAHUNA MANOHARAN

Annual Report 2021

Australian Medical Association Annual Report 2021 15

The AMA worked with the Government to ensure information

and consent forms were developed and communicated

so that anyone receiving a vaccine gave their full, informed

consent. The Department of Health were receptive and

consultative throughout this process, and their eorts

deserveacknowledgement.

The AMA also encouraged its members to take up

expressions of interest from the government to deliver

vaccines in their practices.

By February a new ‘UK strain’ of COVID-19 had breached

Australia’s practice of quarantining overseas returnees in

hotels for a fortnight until they tested negative. The AMA

called for tighter measures including smart changes to

airow in facilities and better personal protective equipment

(PPE) including N95 masks and eye protection for workers in

hotelquarantine.

With the Government’s Infection Control Expert Group (ICEG)

still downplaying the risk of airborne transmission even while

the AMA had been calling it out, Dr Khorshid said the IECG

had failed in its duties, allowing more than six months to

elapse without a promised review of guidelines to protect

healthcare workers from airborne transmission.

In mid-February the AMA welcomed the TGA’s approval of the

AstraZeneca vaccine as a step towards a safe, timely vaccine

rollout. Being produced domestically, AstraZeneca was touted

as the vaccine most Australians would receive.

The 22nd of March was announced as the start date for the

rst vaccines to be administered in Australia with vulnerable

groups including the elderly rst in line and over 1,000

GPs delivering the vaccine from day one. More than 4,500

accredited general practices were on board to vaccinate

staggered groups of eligible Australians.

The vaccine rollout had a slow start, with supply problems

plaguing the early parts of the roll out. This delayed the initial

rollout and meant that many GPs were provided with fewer

doses than anticipated.

The AMA called for temporary telehealth arrangements, due

to end in March, to be extended until the end of the year to

end uncertainty for GPs wanting to plan for coming months.

Telehealth arrangements under Medicare supported patients

in having safe, contact-free consultations with their GPs by

phone or video. Responding only partly, the government

extended temporary arrangements until June, prompting

DrKhorshid to repeat his call in April for an extension to the

end of the year. That extension arrived at the end of April and

was welcomed by AMA. On 13 December, after years of AMA

As January dawned, Australians braced for their second year of the pandemic.

It would see a shift from managing sporadic outbreaks with only public health

measures to vaccinating the country and preparing to live with the virus.

Despite many challenges along the way, Australia ended 2021 as one of the most

vaccinated countries in the world, with over 91 per cent of Australians aged over

16 being fully vaccinated. Our GPs deserve the highest thanks possible for leading

the vaccine rollout and carrying Australia’s population through.

Australians were in an enviable position with

virtually no COVID-19 cases in the community

at the start of the year and the prospect of

vaccines soon being available through imports

and doses produced domestically through

the CSL facility in Victoria. Australia also had a

promising vaccine candidate in development by

the University of Queensland. The Government

made contracts with Pzer, AstraZeneca,

Novavax and the University of Queensland

for vaccines for Australia, pending approval

by the Therapeutic Goods Administration

(TGA). Australia was only the second country

to approve a COVID-19 vaccine not under

emergency provisions.

The AMA welcomed the country’s new Chief

Medical Ocer, Professor Paul Kelly into the job

just before Christmas 2020 and NSW had locked

down the Northern Beaches area of Sydney

due to a local outbreak. The AMA backed the

move and at a time when a zero community-

transmission policy was still being pursued,

AMA President Dr Omar Khorshid called for the

Sydney New Year’s Eve reworks to be cancelled

to discourage crowds and avoid confusion over

social distancing publicmessaging.

Planning was underway for the most signicant

mass-vaccination program of a generation. The

AMA worked collaboratively to ensure GPs were

at the heart of the program to deliver vaccines

to allAustralians.

It would be the biggest public health

undertaking in Australian history.

AMA Vice President Dr Chris Moy described the

planning and logistics involved as being “on the

scale of Dunkirk”.

‘Planning was underway for the most

signicant mass-vaccination program

of a generation. The AMA worked

collaboratively to ensure GPs were

at the heart of the program to deliver

vaccines to all Australians.’

advocacy, the government announced it would permanently

fund telehealth though Medicare with a guarantee for both

GP and non-GP specialist services. The AMA said the health

of all Australian would benet from the added layer of

convenience and safety for patients and GPsalike.

By the end of March it was becoming clear vaccine demand

far outstripped supply and federal and state governments

engaged in a ‘blame game’ over supply and delivery.

The AMA called for an end to the squabbling and for

transparency to avoid diminishing public condence in the

roll-out.

External problems began to emerge. The University of

Queensland trial was abandoned when recipients of

the vaccines were recording false positives for HIV. The

discovery of Thrombosis with Thrombocytopenia Syndrome

(TTS) or vaccine induced thrombotic thrombocytopenia

in people who had received the AstraZeneca vaccine also

complicated Australia’s rollout as this had been intended to

constitute the majority of Australia’s vaccines. This was not

helped by media coverage of TTS that was at times alarmist.

The role of GPs became even more crucial, making sure

vaccines went to the most vulnerable and dealing with

patient concerns over the AstraZeneca vaccine. The AMA

gave voice to GP concerns about the manner in which ATAGI

communicated changes to its advice in response to TTS.

The speed at which advice was updated and then

communicated left many practices working around the

clock to manage increasingly scared, confused and at times

abusive patients, all the while working to vaccinate as many

people as possible.

While there were missteps in the roll out along

the way, the Government and the Department

of Health kept working with the AMA to address

problems and this helped Australia achieve some

of the best vaccination rates in theworld.

Initial discussions with the Government and

the Department of Health about managing the

vaccine rollout focused on the prioritisation of

vaccination among the Australian population.

Given these vaccines were new, we advocated

strongly for a central role for general practice in

the vaccinerollout.

The rst draft of the plan recognised the central

role of general practice but was too constrained,

with the Government proposing to roll out the

vaccine across 1000 general practices. We made

it clear that the strengths of general practice – the

trust patients have in their GPs, the connections

to community – meant that the rollout should

involve all general practices that wanted to

participate. The Government listened to the AMA,

and as our world-leading vaccination rates at the

end of 2021 demonstrated, following the medical

advice was the right move.

The AMA also participated in a series of

discussions about remuneration for participating

GPs. While the nal package was not as high

as we advocated for, it was signicantly more

than the initial oering. The AMA continued to

advocate successfully over the course of the year

for the introduction of additional MBS vaccine

consultitems.

The AMA also underscored the need for

consideration of rurality, after-hours access and

the increased complexity of vaccine delivery and

equipment supplies to be taken into account.

Australian Medical Association Annual Report 2021 17

Although global incidence was extremely rare, as highlighted

by the AMA, the fear of TTS caused many Australians to

wait for the Pzer vaccine, increasing pressure on supplies.

The AMA called on the government to urgently explore the

availability of alternative vaccines.

Despite these challenges, GPs helped their patients

understand risks, proactively engaged their vulnerable

patients, convinced many hesitant patients to be vaccinated,

all while considering the broader risks based on their

existing health conditions. No other health professionals

could have performed this role. GPs are the reason why

Australia reached such high rates ofvaccination.

The AMA made repeated calls for better government

communication on vaccines and issued four key actions

to build vaccine condence following Dr Khorshid’s

presentation to national cabinet on the 12th April:

• improve vaccine distribution to GPs to meet increased

demand from people aged over 50.

• adjust Medicare items for GPs to discuss vaccine risks

and benets with their patients.

• better communication of vaccine benets to individuals

and the whole community especially protection for

the vulnerable and groups not yet eligible to receive

vaccines.

• enable a greater role for states and territories to

administer Pzer, including healthcare workers

consideration of GPs role.

After much lobbying, a scheme was implemented in

September, six months after the rollout began. This

provided more condence for GPs to administer vaccines

and for patients to know they were backed by the

government in the event of mishap.

By early July almost half of Australia’s population and most

major cities were locked down as the Delta strain became

a game changer for Australia and public health restrictions.

Case numbers rose from single digits in the early days of July

to hundreds of daily cases by the end of the month.

To get on top of the Delta outbreak, the AMA called

for consistent rules on travel limits and mask wearing

throughout Greater Sydney, not just in eight aected Local

Government Areas.

At the end of August with several deaths per day from

COVID-19, the AMA called for mandatory vaccinations across

the entire health care system including support sta like

cleaners, receptionists and contractors.

By the end of September, Australia’s 1st dose vaccination

rate was 77 per cent and 54 per cent were fully vaccinated.

Governments were moving away from lockdowns and

looking towards lifting restrictions.

The AMA warned hospitals would be overwhelmed and

called for new modelling based on hospital and stang

capacity to guide opening-up plans for Australia. A few

days later the AMA called out the NSW Government’s

plan to reopen from lockdown for lacking sucient detail

including modelling of future case numbers and health

systemimpacts.

Later in September, AMA’s Federal Council released a

statement on the National Plan to transition Australia’s

National COVID-19 response. It called for a gradual

reopening with pause periods to assess and control new

infections. It additionally called for:

• equitable access to vaccines,

• a review and update to the Doherty modelling upon

which the plan was based,

• the adoption of nationally consistent public health

orders that mandate COVID-19 vaccinations for all

health care workers and extend legal protection to

employers that wish to mandate vaccination for their

own workforces.

Appearing before the Senate Select Committee on

COVID-19 on 21 September, Dr Khorshid called for an end

to public hospital funding blame game by state and federal

governments and warned lifting lockdown restrictions must

not destroy the health system. He said one-o funding

boosts would not address the problems, and neither

With the rst stage, 1a, of the rollout underway for some

time, the AMA said it was unacceptable there were still

unvaccinated doctors and nurses in public hospitals caring

for COVID-19 and potential COVID-19 patients. The AMA

also advocated for rural doctors, some of whom were still

struggling to access vaccinations for themselves, working

hundreds of kilometres from vaccination hubs.

In mid-May the AMA Federal Council issued a communique

on COVID-19 and future quarantine arrangements, calling

for stronger national measures to improve hotel quarantine

and for the establishment of long-term dedicated quarantine

facilities to manage the ongoing risks of COVID-19, as well as

more support for hospitals to meet increased demand and

ensure a surge capacity for future outbreaks.

The AMA and the Council of Presidents of Medical Colleges

together promoted the benets of vaccination as far

outweighing any health risks and urged Australians to get

vaccinated when their turn arrived.

By June the AMA was concerned healthcare workers

in aged care – part of phase 1a of the rollout – were

still unvaccinated and called for a June 30 deadline for

completion of rst phase. The AMA supported mandatory

vaccination for aged care workers which the government was

grappling with and took to national cabinet.

ATAGI recommended Pzer as the preferred vaccine

in adults under the age of 60 in mid-June, again poorly

communicated to general practices. Towards the end of that

month, a new strain of COVID-19 known as Delta took hold

and four Sydney local government areas were locked down.

The AMA said a stronger response was required to contain

Delta and called for the immediate lockdown of metropolitan

Sydney.

AMA advocacy contributed to the welcome measure in June

of new Medicare funding for GPs to vaccinate patients during

home visits and visits to aged care facilities. Later that month

more funding was allocated for longer GP consultations to

inform patients of the benets of vaccination, something

the AMA had been advocating for. Again, the Government

listened to the medical advice, the AMA relaying the

experiences of GPsmanaging vaccine hesitant patients in

their communities.

With TTS came concerns about indemnity. The AMA had

called repeatedly for a no-fault indemnity scheme in advance

of the commencement of the vaccine rollout to reassure

doctors and other vaccinators that they would be protected

if they participated in the program and that their indemnity

premiums would not increase. The AMA warned that many

GPs would be hesitant to vaccinate particular populations,

which occurred after the changes to ATAGI’sguidance.

wouldone-o initiatives like elective surgery blitzes. He said

long-term targeted investment by all governments shared

equally were needed.

By late October with the TGA approving Pzer for the third

or booster COVID-19 vaccine for over 18s, the AMA called

for a review of funding arrangements for GPs administering

COVID-19 vaccines as the government looked to roll out the

booster program.

In November another new variant, dubbed Omicron, was

detected circulating a pandemic-weary global population.

Public health measures were easing around Australia and

hotel quarantine arrangements were being dismantled. The

AMA warned the resurgence of COVID-19 in many nations

was a timely reminder the pandemic was not over and called

for a more vigorous rollout of booster shots and a dedicated

network of national quarantine facilities.

In December, the AMA sounded a warning Australia’s

booster program was falling behind, risking more suering

from COVID-19. It expressed concern at a lack of support for

the booster program, particularly through General Practice.

The Commonwealth cut vaccination funding for GPs

delivering boosters, making it dicult to run clinics at the

volume and scale required. Continued pressure from the

AMA saw the funding restored just before Christmas.

The AMA foresaw DIY contact tracing, watered-down

check in requirements, the abandonment of mask wearing

mandates, and the removal of density limits converging to a

recipe for disaster with hospital admissions and ICU cases

growing beyond benchmarks.

‘GPs are the reason why Australia

reached such high rates

ofvaccination.’

18 Australian Medical Association 19

ADVOCACY

HIGHLIGHTS

2021 was a packed year with

AMA focused on a range of

areas in addition to COVID-19.

Oursought-after expertise and

tireless advocacy continued to

shape and improve the health care

sector, the working lives of doctors

and the health of all Australians.

Here we highlight a few of our

majorachievements.

As Australia prepared to celebrate the new year, national

cabinet adopted a new denition of ‘close contact’, narrowing

its scope to household contacts only. The AMA said the

decision appeared to put politics over health and would lock

in very high transmission rates and accelerate the outbreak

of Omicron.

In 2020 and 2021, we saw that Australia was strongest when

our leaders listened to medical and scientic expertise. As

we enter the third year of the pandemic, the AMA will ensure

that this voice remains loud and present, recognising that

COVID-19 continues to evolve and Australia needs to remain

ready to respond to future threats.

The year came to a close with Omicron surpassing Delta

globally and daily cases in Australia rising to more than

30,000 on December 31.

In 2021, 1,331 Australians had died from COVID 19 with

2,239 COVID deaths over the course of the pandemic

and a total number of 395,504 cases was recorded on

31December 2021.

The surging cases were creating signicant pressure on the

health system, just as the AMA had warned they would.

Australia ended the year as one of the most vaccinated

countries in the world, despite the early challenges

encountered in the vaccination program.

Annual Report 2021

20 Australian Medical Association

COVID-19 VACCINE NO FAULT INDEMNITY SCHEME

One of the key wins for the AMA and its members in 2021

was the establishment of a no-fault indemnity scheme for

vaccinators participating in the COVID-19 vaccine rollout.

Like many of the AMA’s advocacy achievements during the

vaccine rollout – such as the extended vaccine consult MBS

Item – the process was lengthy and at times seemed likely

to fail. Despite clear objections from the Minister and the

Department of Health, the AMA persisted and a retroactive

no-fault indemnity scheme was formally announced by

Health Minister Greg Hunt on 28 August.

The AMA initially called for a no-fault indemnity scheme

ahead of the commencement of the vaccine rollout to

reassure doctors and other vaccinators that they would be

protected if they participated in the program and that their

indemnity premiums would not increase.

The AMA warned that many GPs might be hesitant to

vaccinate particular populations, which occurred after

the changes to ATAGI’s guidance on AstraZeneca. A no-

fault scheme may have seen more GPs vaccinating with

AstraZeneca in Phase 1b and 2a.

There was clear hesitation from the Government and the

Department of Health, with the Health Minister responding

to AMA concerns in April by saying doctors were already

protected. While it is true doctors were protected, the

scheme was awed and did not protect doctors from

dicult legal processes, nor address the issue of potentially

increasing insurance premiums.

The AMA continued to work to ensure that a true ‘no-fault’

scheme was introduced. The AMA coordinated medical

defence organisations and the business sector (including

the Australian Chamber of Commerce and Industry) in

putting forward the no fault scheme to Government.

On 28 June, National Cabinet nally agreed with the AMA’s

proposal, announcing support for a no-fault indemnity

scheme. The AMA’s position, that the scheme had to cover

all vaccines administered to all age groups and be applied

retrospectively, would be introduced in Australia. The

message was that in the extremely rare case of serious side

eects, a patient can access compensation without having

to resort to expensive and complex litigation, with doctors

needing only to provide evidence.

The AMA continued to work with the Government and the

Department of Health, along with other key stakeholders

including the medical defence organisations, over the

following months to support the development of an

eective scheme that would be supported by doctors

andpatients.

As GPs continue to administer COVID-19 vaccines, now

mostly booster doses, the no-fault scheme continues

in place ensuring that health care workers involved in

the vaccine rollout are not put through distressing court

processes for simply playing their role in administering

lifesaving vaccines as part of Australia’s pandemic response.

AGED CARE REFORM

The Royal Commission into Aged Care Quality and Safety

handed down its long-awaited Final Report on 1 March after

two years of hearings, thousands of submissions by aected

older people and their families and a mass of independent

research and reports. In May 2021, in its Budget 2021-22

announcement, the Government provided its response to

the Royal Commission’s recommendations.

Over the two years of the Royal Commission’s work, the

AMA provided seven submissions, with the AMA President

appearing before the Commissioners three times. Key

AMA asks to the Royal Commission included mandatory

minimum sta to resident ratios in nursing homes,

registered nurse availability 24/7, minimum qualications

for personal care attendants, increasing home care package

availability, and increases in MBS rebates for GPs who visit

aged care.

The Commissioners heard and supported most of the AMA

calls. They recommended, and the Government accepted,

that from October 2023, providers will be required to

meet a mandatory care time standard of an average 200

minutes for each resident, including 40 minutes of RN time,

with nursing homes required to have a nurse on site for a

minimum of 16 hours per day. This is below what the AMA

called for, but it is a step in the right direction.

In response to the Royal Commission’s recommendations,

the Government provided an immediate Investment to

into home care packages with extra $6.5 billion to fund

80,000 packages. The Government also accepted the

recommendation pertaining to minimum qualications for

personal care attendants. All of these recommendations

and actions are in line with AMA advocacy.

Finally, the Government provided $365.7 million over four

years on improving access to Primary Care and other health

services, including $42.8 million to boost the Aged Care

Access Incentive from 1 July 2021 to increase support for

face-to-face servicing by GPs in nursing homes, eectively

doubling the maximum yearly payment to GPs to $10,000.

While positive, the AMA remains unconvinced that this

measure alone will be enough to incentivise more GPs

to work in aged care and will continue to advocate for

morefunding.

One area where the AMA disagreed with the Royal

Commission was the restriction of prescription of

antipsychotics to psychiatrists only. The AMA advocated

strongly to the Pharmaceutical Benets Advisory Committee

(PBAC), pushing for a sensible approach, maintaining

prescribing rights with GPs. PBAC agreed with the AMA,

advising the Government against limiting the prescribing.

Following the Royal Commission’s recommendations

and pre-empting the Government’s response, the AMA

published a unique research paper on 12 April titled Putting

health care back into aged care. The paper summarises key

AMA policy positions and provides cost-benet analysis

of their implementation. It found that $21.2 billion could

be saved from avoidable public and private hospital

admissions, presentations and stays from older people

in the community and in nursing homes through better

provision of primary care. This includes improving access

to the older person’s usual doctor, and availability of

registered nurses on site 24/7.

Being aware that some of the actions taken by the

Government in response to the Royal Commission’s

recommendations do not go far enough, the AMA will

continue to advocate for improvements. We will continue

to call for a 24/7 nurse presence in nursing homes to avoid

potential ongoing failures in care and transfers of both

patients and the costs to already overwhelmed hospitals.

Top of the AMA’s advocacy platform remains improved

funding for GPs working in aged care. GPs are the

cornerstone of our health system and people living in

nursing homes should have equitable access. Current

funding is not conducive to GPs continuing to care for their

patients once they enter aged care. This needs to improve

and the AMA will continue to advocate for a funding

increase to adequately compensate for the complex work

done by GPs caring for their elderly patients.

Annual Report 2021

Australian Medical Association

PROTHESES LIST REFORM

In December 2020 the Government announced

proposals to reform the Prostheses List, which

would have fundamentally changed the nature and

management of protheses in the private sector.

The Prostheses List (the List) underpins private practice

in much the same way that the MBS and Pharmaceutical

Benets Scheme do. It sets out which medical devices

health funds must pay benets for, and how much they

must pay.

For instance, if a member of a health fund has hospital

orthopaedic cover and requires a hip replacement, their

health fund would be required to pay the minimum benet

for any articial hip on the List. This means that currently

our patients are not subjected to additional out of pocket

costs to procure the best prostheses for their condition.

There are more than 11,000 items on the List giving

specialists a wide range of choice. Examples of

productsinclude:

• hip, knee or shoulder joint replacement devices

• cardiac implantable electronic devices, like pacemakers

and implantable cardioverter debrillators

• vascular and cardiac stents

• human tissue items, like bone or bone fragments,

vascular grafts, corneas and heart valves

• insulin infusion pumps.

The AMA agreed that the List delivers well against a range of

key criteria including:

• supporting the clinical choice of prosthesis by the

medical practitioner, to ensure that the best prosthetic

product is used for any particular patient

• providing for the medical device companies to support

Australian specialists in their use of specic prostheses

• providing access to a full range of prosthetic items to suit

patients’ dierent clinical needs

• ensuring that patients do not have out of pocket costs

for a prosthetic item regardless of its expense.

The current arrangements do not support ecient pricing

which impacts on the viability of private health insurance

going forward.

The Government put forward two models, but the AMA

rmly rejected the proposal to introduce a Diagnosis-

Related Groups (DRG) bundled funding model that

was being strongly pursued by private health insurers.

We worked with other key stakeholders such as

private hospitals, device manufacturers and consumer

organisations to highlight that, whilst the DRG model

would improve the bottom line for health funds, it was

fraught with danger for patients. It would have meant a

reduced choice of prostheses, increased out of pocket

expenses for patients, and an increased likelihood of poorer

healthoutcomes.

In the 2021-2022 Budget the Government supported the

arguments put forward by the AMA and opted for the

retention of a reformed and modernised List moving to the

introduction of reference pricing, using the prices paid by

Australian public hospitals as a guide.

Whilst this was a major win for the AMA, it is not the end

of the story. The reforms announced by Government will

extend for four years and completely revamp the structure

and clinical logic of the List. This work is already underway

and in recognition of the AMA’s standing and impartiality in

this area, Dr Omar Khorshid was appointed as the Chair of

the Clinical Implementation Reference Group.

The AMA will continue to work with Government and

stakeholders in this area to ensure the outcomes at the

end of this set of reforms deliver savings to private health

insurers but without impacting negatively on clinical

practice, patient or out of pocket costs.

BONDED MEDICAL PROGRAM ADVOCACY

Since early 2021, the AMA has been meeting regularly with

the Department of Health (DoH) Bonded Medical Program

(BMP) Executive Team responsible for remediating the

range of Bonded Medical Scheme diculties arising as

part of a cohort of bonded participants being incorrectly

opted-in to the reformed program. The AMA and AMA

member bonded scheme participants also attend a DoH

convened stakeholder Implementation Reform Working

Group (IRWG).

AMA advocacy and engagement has been instrumental in

achieving substantial changes necessary to address the

myriad problems which have hampered the program's

reputation and angered and inconvenienced doctors,

including, participant’s practical inability to comply with

their obligations and the detrimental impact on their

mentalwellbeing.

We are now seeing improved outcomes. The development

of good collaborative working relationships with the DoH

has led to major positive changes for BMP participants as

aresult.

Key wins the AMA has been able to secure on behalf of

participants during this process include:

• no disadvantage for the following cohorts impacted as a

result of the issues that arose during the implementation

of the program in 2020. These cohorts are:

- those who thought they were opted in, had completed

their obligations and had exited the program

- those who thought they had opted in and still need

to complete their return of service obligations (RoSO);

and

- those who had expressed their interest to opt in via

email and were awaiting a DoH response.

• changes to legislation to streamline the process

for waiving breaches for Medical Rural Bonded

Scholarshipparticipants.

• transparency via public reporting on progress to opt in

impacted participants

• regular webinars to provide information to participants

on remediation processes and supports

• improved call centre responsiveness and additional

training for call centre sta

• revised website to improve access to and availability of

information.

The AMA has been pleased that our insistence for more

resources being allocated to the BMP has delivered

genuine improvement in DoH service and responsiveness

to participants; but we do recognise many frustrations and

challenges remain.

As a result of ongoing AMA advocacy to implement reforms

to the BMP, new legislation is in place that streamlines

the process for waiving breaches for the Medical Rural

Bonded Scholarship. Also, changes will allow the DoH to

opt in participants more quickly and to identify cohorts that

can be opted in now so that they can move on with their

careers, i.e those whose return of service is complete and

can exit the program.

The AMA will continue to provide updates to those AMA

members on the BMP and to report on progress to achieve

our agenda. AMA Member feedback is welcome via email:

[email protected]

Annual Report 2021

24 Australian Medical Association

CLIMATE CHANGE ADVOCACY

The health sector is a big emitter of CO2, contributing to

approximately seven per cent of Australia’s national carbon

footprint. A partnership with Doctors for the Environment

Australia (DEA) formed in March called on the health sector

to reduce its carbon emissions to net zero by 2040, with an

interim target of 80 percent by 2030.

The AMA had declared climate change a health emergency,

recognising that setting clear emission-reduction targets

was a fundamental step towards measurable and

tangible change. The AMA and DEA recommended the

establishment of a national sustainable healthcare unit to

support emissions reduction across the health care system,

as well as the uptake of low carbon procurement options

across the medical supply chain and hospitals.

In July 2021, the AMA expressed disappointment at

the majority decision of the Standing Committee on

Environment and Energy to recommend against passing

new proposed climate change bills. The AMA had previously

supported the draft legislation put forward by Independent

MP Zali Steggall, acknowledging that Australia needed a

clear pathway to limit global warming to 1.5°C to mitigate

the known impacts of a warming climate.

In August the AMA called on the government to act on the

scientic evidence outlined in the 2021 Intergovernmental

Panel on Climate Change report, noting that large scale

reductions in carbon emissions were urgently required to

halt any further rise in global warming. The calls coincided

with devastating res and oods across Europe and North

America in the 2021 northern hemisphere Summer.

AMA and DEA hosted a September webinar with medical

and climate experts, focusing on what role the health

sector can play in reducing carbon emissions. This webinar

PRIORITISING CHILD HEALTH

The AMA convened a Child Health Summit on 16 November

bringing together experts in child health and welfare to

put child health and wellbeing at the centre of public

policy making. Attending were Royal Australasian College

of Physicians (RACP), Australian Council of Social Service

(ACOSS), Murdoch Children’s Research Institute (MCRI),

Academy of Child and Adolescent Health and Australian

Research Alliance for Children and Health (ARACY). The

summit released a communique calling on a newly formed

government (after the 2022 Federal election) to establish

a Child Health Taskforce to report within six months on

priority initiatives to improve the social determinants

ofhealth.

The summit considered child health and wellbeing in the

context of the impacts of the COVID-19 pandemic, as well

as broader social, economic and equity issues that have

persistently impacted health outcomes.

During the pandemic, governments demonstrated that

public policy could be swift and responsive to meet specic

objectives. This includes the raft of public health measures

that were implemented to mitigate the spread of COVID-19,

as well as the additional welfare supports that were

provided through JobSeeker payments to people who could

not work during lockdowns. The AMA and attendees at the

child health summit agreed on the need for a similar level

of targeted policy response to ensure all Australian children

were given opportunities to be in good health, feel safe,

receive an education and envision a future for themselves.

Participants at the summit recognised that climate

change required an urgent response from today’s

leaders to protect the health and wellbeing of current

and future generations. Health and environment are

inextricably linked, and it was imperative to ensure a livable

environment for children in the years to come. Australia

urgently needs a path to transition away from fossil fuel-

based energy, towards renewable sources in order to meet

net zero targets.

Social determinants of health impact on children’s lives.

Accordingly – the communique focused on specic calls

togovernment:

• to reduce poverty. Stating our responsibility to ensure all

households can meet basic needs such as food, heating

and shelter. Government must ensure welfare and

income support payments are in line with the increasing

costs of living

• on housing. Access to safe and secure housing is a

fundamental human right and essential for child health

and wellbeing

• on nutrition and food security. Children who are

hungry or under-nourished are more susceptible to

developmental delays, poor health outcomes and poor

education outcomes.

Reform of the processes that improve the mental health

and wellbeing of children has been increasingly needed

in recent years. We need a mental health workforce that

is trained to deliver mental health care for children and

young people, and a system that is responsive, accessible

and aordable. The impacts of the pandemic on upending

the lives of young people, has only intensied this need.

The summit also called on the government to fund and

implement the recommendations in the National Children’s

Mental Health and Wellbeing Strategy (2021).

garnered the attendance of most medical specialist colleges

represented by their Presidents and CEOs and outlined the

work underway across their sectors to decarbonise work

practices and advocate for climate change as a health issue.

The AMA President jointly co-authored an MJA Insight article

with Dr Kate Charlesworth to articulate the discussion and

outcomes arising from this meeting of over 350 doctors.

The group penned an open letter to the Prime Minister

ahead of the COP26 climate conference in Glasgow, calling

on the government to take meaningful steps towards net

zero emissions.

Just ahead of COP26, the Australian government released

its plan to achieve net zero emissions by 2050, which

the AMA cautiously welcomed, noting its success would

need to be ensured through meaningful regulatory and

economicreforms.

The 2021 webinar established an important discourse

across the medical sector around decarbonising health

care. The substantial engagement of specialist medical

colleges illustrated the importance of leading a health

sector response towards net zero, something the AMA

and DEA will continue to facilitate in 2022 under our

Memorandum of Understanding.

Annual Report 2021

Advocacy

AMA

The AMA has advanced many

other issues on behalf of

AMAmembers. Here are some

of our key wins in 2021.

FOR GPS

COVID-19

Signicant advocacy was required for the COVID-19 vaccine

rollout with the AMA winning a number of outcomes for GPs

who were to take part.

The Government’s plan was originally to restrict the

vaccine program to just 1000 practices. Through intense

negotiations, as a result of AMA advocacy, the original

plan was reversed and any general practice which met

the National Immunisation Program requirements could

participate and provide COVID-19 Vaccinations to their

patients and the community.

With an unsatisfactory remuneration package on the table,

AMA fought for those providing COVID-19 vaccination

services. The remuneration package was improved with

higher rebate for Dose 1 and PIP payment for completion

ofDose 2.

MBS agfall items were later introduced to support GPs

providing vaccinations to patients at home or in residential

aged care facilities.

AMA lobbying also secured a Vaccine Counselling item

equivalent to a Level B to counsel targeted patients about

the risks and benets following ATAGI advice changing on

administering the AstraZeneca vaccine.

The AMA also convinced the Commonwealth to establish

a special COVID-19 vaccine indemnity scheme for GPs

and vaccine providers. The Scheme oers protection

to individuals who receive a TGA approved COVID-19

vaccine, irrespective of where that vaccination occurs and

cover the costs of injuries above $5,000 due to proven

adverse reaction to a COVID-19 vaccination. (See detail in

AdvocacyHighlights.)

Aged Care

In aged care current settings meant poor remuneration and

inadequate incentives to support the time and opportunity

costs of providing GP care to Residential Aged Care

Facilities. AMA won additional tiers of service to the Aged

Care Access Incentive, doubling the total amount payable.

Better supports won will encourage GPs to make nursing

home visits.

Primary Health Reform

Continuing advice and AMA policy was accepted by the

Government for primary health reform and reected in the

Recommendations of the Primary Health Reform Steering

Group. This resulted in the Government’s 10 Year plan

including support for voluntary enrolment, enhancing

multidisciplinary care, enabling connected care, and

fundingreform.

RURAL

The AMA considered remuneration for rural supervisors

inadequate and worked hard to ensure Doctors are better

supported to train doctors in training and medical students

in rural areas. Our advocacy saw the implementation of

supervision support payments up to $30,000 and learning

and development funds up to $13,600 per annum per More

Doctors for Rural Australia Program participants.

Work to reform the Bonded Medical Program resulted in a

no disadvantage guarantee for all aected Bonded Medical

Places Program and Medical Rural Bonded Scholarship opt-

in participants impacted by administrative problems in the

transition to the more exible Bonded Medical Program.

The AMA worked to improve insucient prevocational

general practice training placements in 2021 and secured

the expansion of funded prevocational general practice

training placements in rural areas, from 440 rotations per

year to 800 by 2025. As a result, there are now greater

opportunities for doctors in training to get experience and

an understanding of working general practice.

26 Australian Medical Association 27

2021 key wins

Annual Report 2021

Australian Medical Association Annual Report 2021 29

MENTAL HEALTH

With extended COVID-19 lockdowns increasing mental

health issues in the community in 2021, mental health

reform was on the agenda. The AMA contributed by

inuencing policy through submissions to:

• Final Productivity Commission Inquiry Report on

MentalHealth

• Senate Select Committee on Mental Health and

SuicidePrevention

• Draft Mental Health Workforce Strategy

• Draft Initial Assessment and Referral Tools for Child and

Adolescent Health

Dr Omar Khorshid and Dr Danielle McMullen also appeared

before the Select Committee on Mental Health and Suicide

Prevention to give evidence to support the AMA written

submission.

Dr Khorshid published a Guardian opinion piece regarding

the impacts of Covid on the mental health of young people

and the AMA call to reduce fragmentation of care across the

mental health system.

2021 was an opportunity for the AMA to present

comprehensive feedback to the government on what we

believe needs to happen to reform the mental health

caresystem:

• More support for GPs to oer comprehensive mental

health care

• Urgent addressing of psychiatrist workforce shortage

• Reducing demand on Emergency Departments to

provide acute mental health care

PROSTHESES LIST

Following a consultation that included the possibility of

removing the Prostheses List and moving to bundled

payments (which could have restricted doctor choice and

caused new out of pocket costs for patients), the 2021-22

Federal Budget announced an investment of $22 million

over four years to improve the Prostheses List and its

arrangements and deliver $900 million in savings.

This was a signicant hard-fought win by the AMA for

patients and doctors alike. Working with private hospitals,

medical device manufacturers and consumer organisations

to ensure the Prostheses List was retained and that

changes would not impact negatively on patients. Clinicians

can still choose the right device for their patients, based on

their clinical needs while improving value in private health

insurance (PHI).

As a result, patients will not be subject to an additional out

of pocket cost for prostheses. Doctors will retain their ability

to choose the prosthesis they believe is the right choice for

them and their patient.

PHI premiums will be lower than they otherwise would

which will give more Australians access to the PHI system.

(See detail in Advocacy Highlights.)

PUBLIC HEALTH

LGBTQIA+ Position statement

The AMA released a LGBTQIA+ position statement in

November. This substantially advanced the AMA’s policy

position on gender identity and sexual diversity, including

policy recommendations for equitable health care for trans

people and those with an intersex variation.

This updated position statement received the praise of

external peak organisations and endorsement by the expert

advisory group. The updated advice has supported AMA

responses to current LGBTQIA+ health issues.

Climate change action

The AMA and Doctors for the Environment convened a

high-prole event via webinar attended by the ten specialist

medical colleges, with the AMA and DEA showing leadership

across the medical sector with excellent engagement

from medical colleges. Dr Nick Watts also presented the

NHS model from the UK – outlining the eectiveness of a

sustainable health unit in reducing emissions across the

hospital system. (See detail in Advocacy Highlights.)

Child health summit

The AMA convened a summit with child health and welfare

expert groups to map out shared priorities to take to the

election and beyond around child health. A communique

from the group cited poverty, climate change, mental health

and food security as some of the key issues requiring

urgent attention. (See detail in Advocacy Highlights.)

INTRODUCTION OF E-PRESCRIBING

Under the Government’s plan for expansion of

e-prescribing, medical practitioners were expected to bear

part of the cost of prescriptions sent to patients via SMS.

The AMA advocated strongly with the Department of Health

to ensure that practices did not have to pick up the SMS

costs associated with e-scripts.

Following the AMA advocacy, the Federal Government

introduced a subsidy that has allowed practices to prescribe

via SMS without incurring additional costs. The subsidy is

expected to last at least until June 2022.

AMA advocacy also ensured that the temporary image

based prescribing measures were extended twice during

2021 to allow doctors to continue to prescribe safely during

the pandemic.

MEDICARE

Implementation of Medicare changes arising

from the Medicare Beneﬁt Schedule reviews.

The 1 July MBS changes made national headlines and

dominated the media, following an AMA media release on

6 June, outlining concerns that patients and practitioners

do not have the information they need to be ready for the

signicant changes to orthopaedic, cardiac and general

surgery services listed on the MBS.

In response to the media and public reaction, the

Government agreed to three signicant asks AMA has

advocated for in recent years

1. a rapid process to review some of the oversights and

errors or unintended consequences that are there

buried within the review recommendations

2. to work together to co-design the administrative

processes that support implementation of future

changes to the MBS to ensure all parts of the system

areready

3. change to have private health insurer rebates monitored

by Government, and for the rst time, published on the

Government’s fees website.

AMA advocacy has led to improvements on how Medicare

changes are implemented and communicated to medical

practitioners and the public.

Australian Medical Association Annual Report 2021 31

The AMA submission contributed to the decision not to

downschedule the oral contraceptive pill. This would have

had a detrimental impact on public health by fragmenting

care and excluding the patient’s usual GP. It would have also

removed opportunistic care provided by GPs, risking other

health conditions not being detected by a pharmacist.

MEDICINE SHORTAGES

Ensuring prescriber decisions are honoured

during medicines shortages

The AMA has met often with the TGA during the pandemic,

working to support the development of the Serious Scarcity

Substitution Instrument (SSSI). SSSIs allow pharmacists to

substitute a medicine in a shortage for a TGA-determined

alternative. AMA advocacy ensured that the initial rules

were changed by the TGA so that pharmacists need to

have processes in place to notify the prescriber of the

substitution, to ensure pharmacists honour the ‘do not

substitute’ request from prescribers even if the medicine

is under an SSSI, and to ensure that pharmacists cannot

substitute if they have access to the scarce medicine.

AMA advocacy has ensured that the prescribing doctors

have the nal say on what medicines are dispensed to their

patients, and that all urgent substitutions must be made

with their input.

AMA LIST OF MEDICAL SERVICES:

FEES LIST

Review of non-AMA member licencing

arrangements

The AMA undertook an external review of the Fees List

licencing arrangements for non-AMA members in 2021.

The review resulted in an updated licencing arrangement

to account for the various categories of non-traditional

users of the AMA Fees List (eg State and Federal worker’s

compensation schemes and State Health Departments).

The new AMA Fees List licencing arrangements ensures

that it continues to be used by a wide range and number of

AMA members, non-members and other organisations. This

assists to ensure that medical practitioners are adequately

remunerated for medical services that they provide, and

that the Fees List remains an inuential advocacy tool on

behalf of members.

PROFESSIONAL SERVICES REVIEW

Review of procedural fairness of Section 92

agreements

A review was commenced in late 2021 into the procedural

fairness of section 92 agreements as part of the

Professional Services Review process. This was initially

called for by the AMA in 2019.

The AMA wants this process to review issues raised by

members in recent years, such as a lack of transparency,

lack of clarity of options available to them including appeals,

and the PSR not adequately explaining the problem with

their billing practices. Ultimately this should improve the

profession’s faith in the PSR.

DOCTORS IN TRAINING

Flexibility for prevocational doctors to enter

specialist training

AMA advocacy has ensured that the Review of the National

Framework for Prevocational Medical Training and the

proposed two-year framework for prevocational (PGY1 and

2) medical training A) continues to provide PGY2 doctors

with the exibility to enter specialist training, and that B)

PGY2 doctors will be exempt from formally reporting on

the Medical Board of Australia Continuing Professional

Development Registration Standard requirements if in a

structured program.

Wins for doctors in training mean A) Prevocational doctors’

career choices are enhanced in areas to meet community

care needs. B) Reduction in unnecessary reporting and

stress for prevocational doctors so they can focus on

training and delivering care.

Advocacy for GPs in Training

The AMA Council of Doctors in Training (AMACDT) has

established a GPs in Training Advisory Committee which

has a seat at the table on the Commonwealth Department

of Health GP Training Advisory Committee and Transition

to College Led Training Advisory Committee, allowing us

to advocate on the things that matter to GPs in training

including reforms to parental leave entitlements and

improved employment conditions.

Improved employment conditions for GPs in Training is

a key action in the National Medical Workforce Strategy

(NMWS) and a recommendation in the Senate Inquiry into

access to GP in rural and remote communities.

Reviewing the unaccredited service

registrarmodel

AMA advocacy saw the NMWS include an action to review

the unaccredited service registrar model for service

delivery including determining naming conventions,

dening the various groups within this cohort, considering

factors that impact on these groups and potential

framework/trial parameters.

This will result in a review of unaccredited service Doctors

in Training registrar roles to provide a valid and more

structured training experience and career pathway.

Progression through training for

specialisttrainees

The AMACDT has established a range of Special Interest

Groups and Advisory Committees, engaging more than 100

doctor in training members in AMA policy development

andadvocacy.

The AMA worked to secure state and territory jurisdictional

exam exemptions for Specialist Medical College exams and

paved the way for procedures for College examinations

to be progressed within each jurisdictions according to

respective COVID safe guidelines.

Engaging with our members

The AMACDT has established a range of Special Interest

Groups and Advisory Committees, engaging more than 100

doctor in training members in AMA policy development and

advocacy. This will mean more AMA members can have a

say in the development of AMA policy and advocacy.

Telehealth Items

A temporary extension of Telehealth items until 31

December was subsequently made permanent after years

of AMA advocacy. GPs and non-GP Specialists can now

continue providing consultations by Telehealth. Phone

items are retained but limited.

IMPROVED PPE GUIDELINES TO

PROTECT DOCTORS FROM COVID-19

The AMA advocated ceaselessly throughout the pandemic

to ensure that personal protective equipment (PPE)

guidelines were strengthened so all doctors and health care

workers were wearing appropriate PPE that would protect

them from COVID-19. The AMA wrote to the Chair of the

Infection Control Expert Group (ICEG), discussed it in media

appearances, and Dr Khorshid outlined the AMA’s concerns

to the Senate Select Committee on COVID-19.

In response to this advocacy, ICEG collaborated with the

National COVID-19 Clinical Evidence Taskforce Infection

Prevention and Control Panel to develop updated

guidelines on the use of PPE to protect health care workers

against aerosol transmission of COVID-19.

The updated guidelines released on 10 June were much

more explicit on the need for health care workers to be

provided with N95/P2 masks when managing patients with

conrmed or suspected COVID-19 to protect them against

the risks of aerosol transmission.

MEDICINE SCHEDULING

Vaping and the oral contraceptive pill

Nicotine vaping products (NVPs) were made schedule 4

(prescription only), closing loopholes to access and further

restricting access to nicotine vaping products. The AMA

continues to advocate for strengthening these regulations.

The AMA’s priority remains to reduce smoking and vaping

use in Australia.

AMA advocacy has ensured that Australia maintains strong

tobacco control measures, as well as ensuring that GPs

remain central to quitting smoking.

Strong and sensible AMA advocacy saw another attempt

to downshcedule the oral contraceptive pill to schedule 3

(pharmacist only) prevented. The AMA lodged a submission

to the TGA’s consultation on the Proposed amendments to

the Poisons Standard, with two proposals being presented

to down schedule oral contraceptive pills.

32 Australian Medical Association

EQUITY, INCLUSION AND DIVERSITY

Report on ﬁrst AMA Member diversity survey

The AMA conducted its rst Member Diversity Survey in

December 2020 to better understand the experience and

perceptions of our membership in relation to diversity,

inclusion, and representation.

Six opportunity areas have been identied for development:

• Transformation of leadership image

• Promotion of a gender equitable culture

• Commitment to advancing women

• Organisational support

• Mentoring and networks

• Leadership development

Our partnership with AWHL and the organisational

change management project underway will assist the

AMA to increase and support the number of women in

representative positions.

Role descriptions for AMA Council &

Committee positions

The AMA has developed role descriptions for representative

positions, so the level of commitment and responsibilities

associated with roles are clear to members. This is

available on our website and makes clear to all members

skill sets and time commitments when undertaking

representativeroles.

KEY ACHIEVEMENTS IN 2021

The research report Putting health care back into aged

care was released on 13 April, and was the rst time

nancial implications of avoidable hospital admissions from

aged care have been quantied.

Can we please say “Modelling from the Research and

Reform Unit revealed that $21.2 billion could be saved

over four years if immediate reforms were implemented

to our aged care system to address potentially avoidable

admissions to private and public hospitals.

The report provided a platform for the AMA to launch the

‘Care Can’t Wait’ campaign in partnership with the Australian

Nursing and Midwifery Federation. The report resulted

in several key outcomes, including commitment from

Government to:

• Implement a mandatory minimum sta-to-resident ratio

and improve availability of registered nurses

• Improve senior Australians’ access to primary care

• Greater interoperability between GP clinical and aged

care software systems, with the use of My Health Record

in aged care

• More home care packages

Working closely with AMA policy experts, this report was

built on several years of AMA position statements on

healthcare in aged care and called for greater funding to

support GPs to work in aged care. The research would

inform and be incorporated into 2022 campaigns.

Australia’s health system is one of the best in the world,

however it falls short in several areas, including access to

care, prevention, and coordination.

To show where reform is needed, the AMA launched

its Vision for Australia’s Health in June at the National

PressClub.

The Vision is a blueprint to secure a robust, sustainable

health system into the future and provides a guide to

government and policymakers to preserve Australia’s

standing as a provider of world-class healthcare.

The Vision proposes sensible and targeted initiatives

across ve pillars: general practice, public hospitals, private

health, a health system for all, and a health system for

thefuture.

The AMA has a long history of strong policy expertise

and providing advice to government to assist policy

decisionmaking.

Recognising the next wave of health policy reform

would need to be intertwined with communications and

campaigning to gain and maintain political and public

traction, the AMA established the Research and Reform

Unit in 2021.

Creating a platform for the development and

implementation of health policy reform, the AMA

Research and Reform Unit works with policy experts to

produce evidence-based and implementable solutions

to Australian’s biggest health challenges, including

those not on the political agenda, while working closely

with communications and media groups to create

stakeholdertake-up.

AMA RESEARCH AND REFORM UNIT

Annual Report 2021

34 Australian Medical Association

The research report A tax on sugar-sweetened beverages:

Modelled impacts on sugar consumption and government

revenue was launched on 9 June at the National Press Club.

The modelling indicates that a tax on select sugary drinks

would reduce sugar consumption from soft drinks by 12 to

18 per cent and raise annual government revenue of $749

million to $814 million.

The launch was welcomed in the public sphere with

coordinated social media activity from obesity and chronic

disease stakeholders. It was also welcomed by AMA

members as a key component of AMA’s public health

advocacy agenda. The research report was translated into

a social media campaign – the #Sickly-Sweet campaign – in

January 2022, educating Australians about the health risks

of sugary drinks and the need for a tax on them.

The research report Public hospitals: Cycle of crisis was

launched on 15 October, and presents a compelling

and worrying picture of the future of public hospital

performance under a ‘do nothing’ scenario, with

straightforward solutions in the form of a revised and

expanded funding model to turn the crisis around.

The report is set in the context of COVID-19 pandemic,

highlighting that public hospitals were under pressure

before the pandemic, and would not have the capacity to

scale up to meet the demands of a widespread COVID-19

outbreak or a typical u season.

Working closely with AMA policy experts, the report was

built on the previous work the AMA has done in calling out

the declining performance of public hospitals through the

annual AMA Public Hospital Report Card. It also took the

anecdotal evidence from AMA members to provide a robust

account of how chronic underfunding of public hospitals

has led to declining performance and jeopardises lives.

The research report was recently translated into the AMA

Clear the hospital logjam campaign, which was launched in

February 2022.

ama

at work

Leading Australia’s Doctors –

Promoting Australia’s Health

Annual Report 2021

Australian Medical Association 37

AMA COUNCILS, COMMITTEES

& WORKING GROUPS

Councils

• Council of General Practice

• Council of Private Specialist Practice

• Council of Rural Doctors

• Council of Doctors in Training

• Council of Public Hospital Doctors

Committees

• Ethics & Medico-Legal Committee

• Equity, Inclusion & Diversity Committee

• Public Health Committee

• Fees List

• Funding & Health System Reform Committee

• Digital Health Sub-committee

• Mental Health Committee

• Medical Practice Committee

• Taskforce on Indigenous Health

• Industrial Coordination Meeting

SUBMISSIONS

AMA made the following submissions in 2021:

• AMA submission on opportunities for reform of GP

training employment arrangements

• AMA submission to the Evaluation of the DVA’s Allied

Health Treatment Cycle Arrangements

• AMA Submission - Department of Health Consultation on

Aspirations for the Food Regulatory System

• AMA submission on the Draft National Medical

WorkforceStrategy

• AMA submission to the TGA - proposed amendments to

the Poisons Standard - March 2021

• AMA Submission to the Department of Health

Consultation in relation to options for further reforms to

Private Health Insurance - Age of Dependents

• AMA submission to the Department of Health

consultation in relation to options for reforms and

improvements to the Prostheses List

• AMA Submission to the Department of Health

consultation in realtion to options for further reforms

to Private Health Insurance. Consultation 4: Applying

greater rigour to certication for hospital admission

• AMA submission to the Inquiry into Australia’s skilled

migration program

• AMA Submission to the Deaprtment of Health

consultation in realtion to options for further reforms

to Private Health Insurance. Consultations 2 and 3:

Expanding home and community-based rehabilitation

and mental health care.

• AMA submission on the Data Availability & Transparency

Bill 2020

• AMA Submission to the Podiatry Board of Australia - Draft

proposed professional capabilities and accreditation

standards for podiatry and podiatric surgery

• AMA Response to Productivity Commission Inquiry

Report on Mental Health

• AMA Submission on Revised Registration Standard for

Endorsement for Acupuncture for Registered Medical

Practitioners

• AMA Submission on denition of general practice for the

purpose of accreditation

• AMA submission to the Therapeutic Goods

Administration - Standard for vaporiser nicotine

• AMA Submission to the Medical Board of Australia’s

Condential Preliminary consultation on a Draft

Registration Standard: Health checks for late career

doctors (Condential Consultation)

• AMA submission to the Senate Select Committee on

Job Security Inquiry into the impact of insecure and

precarious employment

• AMA Submission to the Chief Health Executives Forum

- National Registration and Accreditation Scheme for

the Health Professions, Consultation on the draft Health

Pactitioner Regulation National Law Amendment Bill

• AMA submission on the Draft National Preventive Health

Strategy 2021-2030

• AMA Submission to the Senate Inquiry into the

Administration of registration and notications by the

Australian Health Practitioner Agency and related entities

under the Health Practitioner Regulation National Law

• AMA Submission: Joint Standing Committee on the NDIS -

Independent Assessments

• AMA Submission to the Public Consultation on Revised

Regulatory Principles for the National Scheme

• AMA Submission to the Preliminary Consultation on

the Review of the English Language Skills Registration

Standards (Condential Consultation)

• AMA submission to the Therapeutic Goods

Administration - Proposed amendments to the Poisons

Standard - June 2021 - oral contraceptives

• AMA submission to the Australian Commission on Safety

and Quality in Health Care - National Opioid Analgesic

Stewardship Program

• AMA submission to the Therapeutic Goods

Administration - Proposed amendments to the Poisons

Standard - June 2021

• AMA submission - FSANZ Act Review draft Regulatory

Impact Statement

• AMA calls on ACCC to abandon proposed authorisation

of Honeysuckle Health/ NIB buying group

• AMA submission to the Therapeutic Goods

Administration - Proposed improvements to the

Therapeutic Goods Advertising Code

• AMA response to Practice Incentive Program eHealth

Incentive (ePIP) Review Discussion Paper

• AMA submission to the Therapeutic Goods

Administration - Proposed renements to the regulation

of personalised medical devices

• AMA Submission to the Senate Community Aairs

Legislation Committee inquiry into the National Disability

Insurance Scheme Amendment (Improving Supports for

At Risk Participants) Bill 2021

• AMA Submission in response to Primary Health Reform

Steering Group Draft Reccomendations

• AMA Submission in response to Disability Support (DSP)

Impairment Tables Review Issues Paper

• Submission to Select Committee on Mental Health and

Suicide Prevention

• AMA submission to the Therapeutic Goods

Administration - Proposed renements to the regulation

of medical devices that are substances introduced to the

human body via body orice or applied to the skin

• Submission to Palliative Care Australia on Consultation

Draft - Standards for Generalist Palliative Care

• AMA Submission to the Private Health Australia exposure

draft of Combatting surprise billing in Australia.

• AMA Submission to the Further Review of Quarantine

Arrangements

• AMA Submission to the Review of General Practice

Accreditation Arrangements

• AMA submission - National Plan on Reducing Violence

Against Women and their Children

• AMA Submission to Health Ministers: Addressing health

system demand from COVID-19 discussion paper

• AMA submission - National Climate Resilience and

Adaption Strategy

• AMA Submission on the Preliminary Ahpra Draft Data

Strategy (Condential Consultation)

• AMA Submission in response to Consultation Paper No 1

Prostheses List - Purpose, Denitions and Scope

• Ama Submission to Inquiry into provision of general

practitioner and related primary health services to outer

metropolitan, rural, and regional Australians

• AMA Submission to the Independent Hospital Pricing

Authority’s (IHPA) Consultation Paper on a Methodology

for Determining the Benchmark Price for Prostheses in

Australian Public Hospitals

• AMA Submission on RACGP Administrative Changes to

Standards for General Practice (5th edition)

• AMA submission to Healthcare Management Advisors

on the Streamlining and Expansion of RPGP and

ProceduralPIP

• AMA response to National Mental Health Workforce

Strategy Consultation Draft

• AMA Submission to PBAC - Restricted prescription of

antipsychotics in residential aged care

• AMA submission to the Medical Services Advisory

Committee - Pharmacy Diabetes Screening Trial

• AMA submission to the Therapeutic Goods

Administration - Proposed amendments to the Poisons

Standard - November 2021

• AMA Submission to Australian Digital Health Agency

(ADHA) consultation on the mHealth applications

Assessment framework

• AMA submission to the Australian Commission on Safety

and Quality in Health Care - updating national Quality

Use of Medicines publications

• AMA submission to ANAO on the performance audit of

Australia’s COVID-19 vaccination rollout

• AMA Submission - Department of Health Consultation on

Draft National Obesity Prevention Strategy 2022-2032

• AMA submission on Australia’s Primary Health Care 10

Year Plan 2022-2032 consultation Draft

• AMA submission to the Department of Health - National

Medicines Policy Review

• AMA response to proposed changes to the RACGP

Standards for general practices (5th edition) -

COVID 19/IPC

• AMA submission to Health Management Advisors (HMA)

– on Consultation Paper 2 – Streamlining and Expansion

of the RPGP and PIP Procedural GP payment

• AMA submission to the Australian Academy of Health

and Medical Sciences project to improve healthcare for

Australians by better enabling research to be conducted

within the health system

Annual Report 2021

Australian Medical Association Annual Report 2021 39

• AMA submission to Draft National Safety and Quality

Health Service Standards user guide for acute and

community mental health services

• AMA Submission to Senate Inquiry into Disability Support

Pension - re proposed reinstatement of DSP Treating

Doctor Report

• AMA Submission to the National Healthcare

Interoperability Plan

• AMA Submission to the Therapeutic Goods

Administration - mandatory reporting of medical device

adverse events by healthcare facilities

• AMA Submission to Professional Services Review - section

92 agreements

• AMA submission to the consultation on new residential

aged care design standards

• AMA Submission to Nurse Practitioner 10 Year Plan

Consultation Paper

• Submission to Parliamentary Joint Human Rights

Committee Inquiry into the Religious Discrimination Bill

2021

• Submission to Senate Standing Committee on Legal

and Constitutional Aairs Inquiry into the Religious

Discrimination Bill 2021

• AMA Submission to the Department of Health on the

Draft Health Practitioner Regulation National Law

Amendment Bill

POSITION STATEMENTS

The AMA produced the following positions in 2021:

• Measuring clinical outcomes in general practice 2021

• Health Literacy - 2021

• Position Statement on Advertising and Public

Endorsement

• Medical parents and prevocational and vocational

training

• General Practitioners in Maternity Care Position

Statement

• Ten Minimum Standards for Telemedicine

• General Practice Nurse 2021

• Prevocational medial education and training - 2020

• Fundholding - 2021

• Primary Health Networks 2021

• Integration of General Practitioners into rural hospitals

• AMA Position Statement - Cultural Safety

• Position Statement: Health Savings Account 2021

• Workplace Facilities and Accomodation for Hospital

Doctors - 2021

• National Intern Allocation Process - 2021

• The future of dispensing – ensuring Australians have

aordable and accessible medicines into the future

• Medicines 2021

• Clinical Indicators 2021

• Out of hours primary care 2021

• Supporting GPs in the Immediate Aftermath of a Natural

Disaster 2021

• Vaccinations Outside of General Practice - 2021

• LGBTQIA+ Health - 2021

• Medical Home - 2021

• Workplace Bullying, Discrimination and Harrassment

2021

• Digital Health Vision Satetment Preamble

REPORT CARDS

• Public Hospital Report Card 2021

• Private Health Insurance Report Card 2021

APPEARANCES AND FORUMS

• Public Hearing – select committee on COVID-19

(January 2021)

• Public Hearing - Select Committee on COVID-19

Children and the vaccine rollout)

• Public Hearing – select committee on COVID-19

(April 2021)

• Public Hearing – Select Committee on Mental Health and

Suicide Prevention (6 August)

• Public Hearing – Senate Select Committee on Job Security

(16 September)

• Senate Committee Public Hearing on Provision of

general practitioner and related primary health services

to outer metropolitan, rural and regional Australians

(3November)

39 Australian Medical Association

MEMBERSHIP

The AMA has been reporting on gender diversity since

2019 in line with a commitment to achieving a target of 40

per cent women, 40 per cent men, 20 per cent exible for

all Federal AMA Councils, Committees and Boards, with a

gender diversity target of women holding 50 per cent of

Federal AMA representative positions overall.

To date the AMA has not met is targets and in December

2021, AMA Federal Council rearmed its commitment to

achieving its gender targets with a revised time frame for

attainment by 2024.

Overall, of 224 representative positions on Federal AMA

Councils and Committees as of 31 December 2021, 145

(65%) were held by men, 79 (35%) were held by women.

While the target was not met, this is a slight improvement

from last year (66%m; 31%f) and a marked improvement

since 2018 (74%m; 26%f). Of the 15 Federal AMA Councils

and Committees considered in this report, 11 (73%) were

chaired by men, 3 (20%) by women and 1 (7%) jointly

chaired; noting the Federal Board has a female chair.

Moving forward, our partnership with Advancing

Women in Healthcare Leadership and the organisational

change management project underway will assist the

AMA to increase and support the number of women in

representative positions. The AMA has also taken steps to

improve diversity in representation as part of its proposal to

reform the structure of Federal Council to be approved at a

General Meeting in 2022.

During the year, the AMA engaged the health care research

rm Luma to conduct research of both AMA members and

non-members to inform the how best to support doctors in

their roles. The research among other matters revealed the

top ten-member service priorities doctors look to the AMA

to provide as being:

• Advice or assistance with a workplace relations issue

• Support, information and advice on a professional or

ethical matter

• Billing advice (e.g. AMA fees list)

• First port of call for medico legal advice

• Business learning, support, information and advice to set

up or run a private practice

• Leadership/management coaching e.g. to aid career

progression

• Peer support: a one-on-one relationship with a peer or

more experienced doctor

• Mentoring: a one-on-one relationship with a more

experienced doctor

• Discounts on premium products e.g. tech, frequent

yermembership, cars

• Scholarships for young researchers

Female: 38%

Male: 62%

Membership by gender

Doctor in Training: 16.38%

GP, non-GP specialist: 45.94%

Retired from practice: 2.19%

Other, academic &

administration: 2.13%

Associate medical student

members: 33.36%

Membership by type

1-10: 61.89%

11-20: 14.53%

21-30: 10.91%

31-40: 6.25%

41-50: 3.94%

Over 50: 2.48%

Membership by tenure

NULL: 1.00%

Under 25: 0.52%

25-44: 18.06%

35-44: 18.78%

45-54: 20.65%

55-65: 20.75%

Over 65: 20.24%

Membership by age

Australian Medical Association Annual Report 2021 41

The AMA President, Dr OmarKhorshid

and VicePresident, Dr Chris Moy

emerged as trusted, sought-after

sources for media commentary on the

pandemic, the health of Australians

and many other aspects our health

system throughout 2021.

Along with other AMA spokespeople

they promoted the AMA’s position

as the nation’s leading voice of the

medical profession in the media,

with AMA policy and views reaching

a signicantly increased audience

of 657, 677, 772 readers, viewers,

andlisteners.

media report

AMA MENTIONS IN TRADITIONAL MEDIA

TOTAL POTENTIAL AUDIENCE REACH: 657, 677, 772 people.

The AMA’s reach was vastly increased from 412,733,350 people the previous year.

Radio

51,105

Television

5,653

Online

72,050

Newspaper

2,922

Top Post

FACEBOOK

Followers - 27,093

Comments – 2,102

Impressions - 752,341

Total Engagements: 3,443

Reactions 1,213

Comments 177

Shares 207

SOCIAL MEDIA

TWITTER

Followers – 31,956

Retweets – 16,899

Impressions - 6,258,139

Top Tweet

Total Engagements: 10,261

Likes 2,535

Comments 54

Shares 972

4342 Australian Medical Association

Address to the National Press Club

Dr Khorshid appeared at the National Press Club in Canberra

on 10 June giving a wide-ranging address which launched the

AMA’s Vision for Australia’s Health.

The Vision, a clear blueprint strategy for all governments and

players in the sector, is built around ve pillars of detailed

policy reform: General Practice, Public Hospitals, PrivateHealth,

AHealth System for All and A Health system for thefuture.

The speech stated areas the AMA would campaign on in

the future and launched a second research paper, A tax on

sugar-sweetened beverages which describes the health risks of

consuming too many sugary drinks and the benets a tax on

them can bring. Dr Khorshid’s address was broadcast live on

ABC Television and was covered in the Sydney Morning Herald.

Appearance on ABC TV’s Q&A program

The AMA President was a guest on the ABC’s agship Q&A

program on 10 June, a live special hosted by Stan Grant on the

COVID-19 response. DrKhorshid engaged in a lively debate with

the panel.

Omar Khorshid, President of the Australian Medical Association, had heard

enough and interjected.

“Are you seriously suggesting that Covid doesn’t aect young people or that

our border closures haven’t made us almost the most successful country in the

world when it’s come to managing this pandemic?,” he asked.

Mr Murray questioned whether Australia had been “the most successful”.

DrKhorshid told him Australia had been “extraordinarily successful”.

(Source: News.Com. 10 June)

MEDIA MOMENTS:

The AMA President made a number of important media appearances in 2021, promoting the AMA’s work and

providing expertise and commentary to media reportage.

YouTube Collaboration

The AMA partnered with YouTube in 2021 to

combat misinformation about COVID vaccines,

with Dr Khorshid appearing as a guest expert

alongside prominent health communicators

DrMatt Barton and Dr Mike Todorovic.

The series kicked o on Dr Matt and Dr Mike’s

YouTube Channel with a look at the topic of

COVID-19 Vaccines: Fertility and Pregnancy, on

23September garnering 62,575 views.

AMA unique research papers

In 2021 the AMA released the rst three in a series

of special research papers. Putting Health Care back

into Aged Care was launched on 12 April ahead

of the Royal Commission nal report. A tax on

sugar-sweetened beverages was launched as part of

the AMA’s Vision for Australia’s Health in June. The

AMA’s analysis of the eects of long-term under

funding of Australia’s public hospitals, Cycles of

Crisis was released on 15 October. The reports

garnered extensive media coverage.

Annual Report 2021

Australian Medical Association 45

AMA SUBSIDIARIES:

AMPCo

The Australasian Medical Publishing Company (AMPCo) has

three business streams: Data, Advertising and Publishing.

Best known for publishing the Medical Journal of Australia

(MJA), AMPCo has progressed its business transformation

over the last year by successfully transitioning the

readership of the MJA from print to digital, expanding use

of podcasts and webinars to bring MJA readers content in

new formats, and initiating a new data product Illuminate

Doctor. The MJA’s oshoot publication Insight has expanded

its readership reach and provided a growing advertising

revenue stream. All this was achieved while also improving

the MJA’s impact factor to 7.738, ranking the MJA as the

17th best general medical journal internationally.

Doctors Health Services Pty Ltd

Better physical and mental health of every doctor is a key

objective of the AMA. Doctors Health Services Pty Ltd is

one of the ways in which the AMA contributes to improving

the health and wellbeing of doctors. In the course of the

last year, Doctors Health Services Pty Ltd has revised its

contracting arrangements with the network of doctor health

service providers, supported the ACT to commence its own

local doctor health service and Tasmania to commence

its own local service in late 2022, and worked with the

Australian Council on Healthcare Standards to develop

and adopt service standards to guide delivery of doctor

health services. Work to implement the Every Doctor, Every

Setting mental health framework has been commenced,

and a new Board of Directors has adopted a new strategic

plan to ensure doctor health service expansion in years to

come. The work of Doctors Health Services Pty Ltd benets

every doctor and medical student, and is possible only with

the funding support of the Medical Board of Australia and

Commonwealth Department of Health.

Doctor Portal Learning

Doctor Portal Learning Pty Ltd was transferred to the

ownership of AMA WA on 31 December 2021. This

transition has enabled DPL to continue provision of

professional development learning to every AMA member

as an entitlement of membership. It has additionally allowed

exploration of the potential for the AMA to be credentialled

as a CPD Home.

AMA Fees List

AMA Fees List is an online service for all AMA members to

determine fees charged in private medical practice. The

Fees List is also used by some government agencies and

insurers to inform payment for medical services. As the

Fees List approaches fty years of service, the AMA invested

in further upgrades to the Fees List service by reviewing

and adjusting certain MBS item numbers, updating the Fees

List to incorporate changes advised by the MBS Review

and Department of Health, and adjusting commercial and

government use licencing agreements. Improvements in

system usability have been gradually deployed over the

course of the year.

financial

report

General Purpose Financial Report

Australian Medical Association Limited and Controlled Entities

ABN 37 008 426 793

For the nancial year 31 December 2021

CONTENTS

Directors’ Report 46

Statement of comprehensive income 53

Statement of nancial position 54

Statement of changes in equity 55

Statement of cash ows 56

Notes to and forming part of the nancial statements 57

Directors’ declaration 90

Auditor’s independence declaration 91

Independent audit report 92

Annual Report 2021

Annual Report 2021 47

46 Australian Medical Association

DIRECTORS REPORT

The names of directors in oce during the nancial year are as follows:

A/Professor Rosanna Capolingua

MBBS, FAMA, MRACGP, FAICD

Chair

Investment Committee member

General Practitioner

Dr Jessica Dean

BMedSci (Hons), MBBS (Hons), LLB, GAICD

ICU Registrar

(Board Member from 28 May 2021)

Dr Antonio Di Dio

MBBS (USYD) DipRACOG FRACGP

Audit, Risk and Performance Committee member

General Practitioner

Dr Stephen Gourley

MBBS, Grad Dip CE, MHM, MPH, FRCEM, FACEM,

MAICD, AFRACMA

Deputy Chair

Audit, Risk and Performance Committee member

Investment Committee member

Head of Emergency Medicine

Dr Ruth Kearon

FRACGP

Director of Health Workforce, Planning Unit,

Department of Health

(Board Member from 28 May 2021)

Dr Katherine Kearney

FRACP, BPharm, MBBS, MMed (Clin Epi)

Chair, Audit, Risk and Performance Committee

Cardiologist

Dr Omar Khorshid

MBBS, FRACS, FAOrthA, FAMA, AdvDipMgt, GAICD

President

Orthopaedic Surgeon

Dr Bavahuna Manoharan

MBBS, MPH, BSc, CHIA, GAICD

State Clinical Director

Dr Helen McArdle

BMedSc, MBBS, MPH, FAFOEM, FRACMA, FAICD

Audit, Risk and Performance Committee Chair

Specialist Medical Administrator and Occupational

Physician (Board Member until 28 May 2021)

Dr Chris Moy

MBBS, FRACGP, FAMA

Vice President

General Practitioner

A/Professor Gino Pecoraro

MBBS, MRACOG, FRANZCOP

Chair

Obstetrician & Gynecologist

(Board Member until 28 May 2021)

Dr Gary Speck AM

MBBS, BMedSc (Hons), FRACS, FAOrthA, FAMA, GAICD

Chair, Investment Committee

Orthopaedic Spinal Surgeon

A/Professor William Tam

MBBS, FRACP, PhD

Senior Gastroenterologist

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 of the AMA Group (Group) 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 benet

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

and provides services and communications to its members.

Through its subsidiaries, it publishes and circulates the

Medical Journal of Australia and coordinates the provision

of medical services to all medical practitioners and medical

students. The consolidated Group owns investment assets

held for long term funding requirements.

FINANCIAL RESULTS

Review and result of operations

In 2021, the consolidated Group recorded a total

comprehensive income of $2.5 million (2020: $2.3 million).

The consolidated comprehensive income for the year, is

net of accounting for changes in fair value of long- term

investments that are reective of valuation at reporting

date. A higher performance in unrealised capital was

recorded this year and osets the downturn recorded at

the end of last year, reecting the Board’s assessment that

the Group’s long term investment portfolio is in a strong

position to ride downward trends.

The Group’s operations are largely unchanged apart from

continued variation to the format of meetings and the

requirement for remote worksites, in line with Government

requirements. During the year, the Federal Secretariat

moved it’s Canberra oce to newly leased premises on 39

Brisbane Avenue. Recognition of the commencement of

this lease for the right to utilise the asset and the liability

for inccurrence of rent is reected in the accounts this

year. Subsequent to reporting date, on 1 January 2022,

operations of Doctorportal Pty Ltd was transferred to AMA

Western Australia with services to all subscribers, members

and non-members alike, to continue as is. At the time of

reporting, there are no other strong indicators to suggest

material nancial impacts to the Group’s results in future

nancial years from on-going operations.

Australian Medical Association Annual Report 2021 49

Revenue

Compared to 2020, total revenue from operations, remained consistent at $21.9 million (2020: $21.9 million).

Graph 1 – Distribution of revenue

Membership subscriptions – 59%

Database and data sales – 18%

Editorial – 5%

Commercial and member services – 6%

Doctors Health Services – 7%

Interest – 5%

Expenses

Total expenses (before income tax) increased by 7.6% (2020: decrease 5.7%) to $21.3 million (2020: $19.8 million).

Increases in spending in 2021, includes investment on initiatives that inform long-term business improvements.

Graph 2 – Distribution of expenses (excluding income tax)

Commercial and member services – 15%

Database and data – 17%

Doctors health services – 7%

Publications – 20%

Advocacy and policy – 26%

Subsidies – 6%

Property and occupancy – 9%

Review of ﬁnancial position

Net assets increased 8.3% to $32.5 million compared to prior year (2020: increased 8.7% to $30.0 million).

Assets

Total assets increased 22.3% to $43.9 million compared to prior year (2020: $35.9 million). Two main contributors to this

increase is the recognition of the right to use the new oce in Canberra, which is a leased premise, and a favourable

increase in unrealised capital in the long term investment portfolio.

Graph 3 – Distribution of assets

Cash and long-term investments – 74%

Receivables – 5%

Other– 1%

Property, plant and equipment,

investment properties and intangibles – 20%

Liabilities

Total liabilities increased 90.0% to $11.4 million compared to prior year (2020: $6.0 million). The main contributor is the

recognition of a lease liability for the new oce in Canberra.

Graph 5 Distribution of liabilities

Payables – 17%

Employee beneﬁts – 16%

Lease liabilities – 62%

Income received in advance – 5%

Australian Medical Association Annual Report 2021 51

ROUNDING

Amounts in the nancial report have been rounded to the

nearest thousand dollars ($’000).

DIVIDENDS

The Constitution of Australian Medical Association Limited

does not permit the distribution of dividends to members.

STATE OF AFFAIRS

There was no signicant change in the state of aairs of

the Group during the nancial year under review that is not

disclosed in the nancial statements.

STRATEGIC DIRECTION

During the reporting year the Board of Australian Medical

Association Limited are in progress to implement its

operational plan to achieve its strategic objectives for

2020-2023.

The strategic objectives support the AMA’s mission of

Leading Australia’s Doctors – Promoting Australia’s Health.

The four pillars of the Board’s strategic plan are:

1 – Value for Members

2 – Focused Advocacy

3 – Eective and Ecient Operations

4 – Improved Federation

The strategic objectives are delivered through an

operational plan, which is reviewed and updated each year.

The activities agreed for inclusion in the operational plan

are funded in the budget.

AUDITOR’S INDEPENDENCE

DECLARATION

A copy of the Auditor’s independence declaration as

required under s307C of the Corporations Act 2001 is set out

on page 91.

INDEMNIFICATION AND INSURANCE OF

OFFICERS ANDAUDITORS

Indemniﬁcation

Since the end of the previous nancial year, the Group

has not indemnied or made a relevant agreement

indemnifying against a liability of any person who is or has

been an ocer or auditor of the Group.

Insurance premiums

During the nancial year the Group paid premiums

in respect of Directors’ and Ocers’ Liabilities and

Professional Indemnity for the year ended 31 December

2021, insuring the directors of the company and all

executive ocers of the Group against a liability incurred by

such a director or executive ocer to the extent permitted

by the Corporations Act 2001.

INFORMATION ON DIRECTORS

The Board is comprised of 11 medically qualied 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.

Under the Constitution, the Directors are required to be

appointed based on their skills and experiences.

Directors’ interests

Since the end of the previous nancial year, no Director has

received or become entitled to receive a benet, other than

a benet included in the aggregate amount of remuneration

received or due and receivable by Directors shown in the

nancial statements in Note 19.

DIRECTORS MEETING ATTENDANCE

During the period 1 January 2021 to 31 December 2021 the Board met on 10 occasions.

The Audit, Risk and Performance Committee met 3 times. Three members of the Committee are Directors and one is an

independent appointment.

The Investment Committee met 7 times. All three members of the Committee are Directors.

The following tables summarises the meeting attendance of the Directors and Committee members during 2021, noting

the number of meetings each Director/Committee member was eligible to attend and attended.

BOARD MEETINGS

ELIGIBLE TO ATTEND ATTENDED

Dr Omar Khorshid 10 10

Dr Chris Moy 10 9

A/Prof Rosanna Capolingua 10 10

Dr Stephen Gourley 10 10

Dr Gary Speck 10 10

A/Prof William Tam 10 10

Dr Katherine Kearney 10 10

Dr Antonio Di Dio 10 8

Dr Bavahuna Manoharan 9 7

Dr Jessica Dean 7 7

Dr Ruth Kearon 6 6

A/Prof Gino Pecoraro 4 4

Dr Helen McArdle 4 4

Australian Medical Association Annual Report 2021 53

AUDIT, RISK AND PERFORMANCE COMMITTEE

ELIGIBLE TO ATTEND ATTENDED

Dr Katherine Kearney 2 2

Mr Ed Killesteyn 3 3

Dr Stephen Gourley 3 3

Dr Antonio Di Dio 3 1

Dr Helen McArdle 1 1

INVESTMENT COMMITTEE

ELIGIBLE TO ATTEND ATTENDED

Dr Gary Speck 7 7

A/Prof Rosanna Capolingua 7 7

Dr Stephen Gourley 5 5

The 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 the adjustments of rights of contributions amongst themselves,

of an amount not exceeding two dollars.

Signed in accordance with a resolution of the Directors.

Dr Omar Khorshid

President

Australian Medical Association Limited

Dr Rosanna Capolingua

Chair

Australian Medical Association Limited

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2021

Consolidated

2021 2020

Note $’000 $’000

Revenue 20,892 20,287

Other income 1,018 1,641

2 21,910 21,928

Expenses

Employment (13,339) (12,378)

Publications (520) (977)

Database and data (52) (41)

Advocacy and policy (497) (507)

Subsidies 2 (1,345) (1,227)

Commercial and member services (172) (107)

Doctors Health Services (1,423) (1,673)

Property and occupancy (1,350) (877)

Depreciation and amortisation (646) (413)

Administration 2 (1,971) (1,551)

(21,315) (19,751)

Prot before income tax 595 2,177

Income tax credit/(expense) 4 457 256

Prot for the year 1,052 2,433

Other comprehensive income

Changes in fair value of investments at fair value through

other comprehensive income

1,945 (144)

Income tax relating to these items (482) 46

Other comprehensive income for the year, net of tax 1,463 (98)

Total comprehensive income for the year 2,515 2,335

Australian Medical Association Annual Report 2021 55

Consolidated

2021 2020

Note $’000 $’000

Assets

Current assets

Cash and cash equivalents 5 8,403 8,405

Trade and other receivables 6 2,092 1,742

Inventories 7 32 14

Prepayments 8 213 253

Financial investments 9 1,625 437

Total current assets 12,365 10,851

Non-current assets

Financial investments 9 22,537 20,455

Intangible assets 10 1,357 1,790

Property, plant and equipment 11 1,864 518

Deferred tax assets 12 278 303

Right-of-use assets 13 5,529 2,026

Total non-current assets 31,565 25,092

Total assets 43,930 35,943

Liabilities

Current Liabilities

Trade and other payables 14 2,488 2,365

Lease liabilities 13 900 847

Employee benets 15 1,588 1,352

Income tax payable 16 - -

Total current liabilities 4,976 4,564

Non-current liabilities

Employee benets 15 223 112

Make good provision 13 159 -

Lease liabilities 13 6,073 1,283

Total non-current liabilities 6,455 1,395

Total liabilities 11,431 5,959

Net assets 32,499 29,984

Equity

Retained earnings 30,745 29,693

Reserve 1,754 291

Total equity 32,499 29,984

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2021

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2021

Consolidated

Retained

earnings Reserve Total Equity

$'000 $'000 $'000

At 1 January 2020 27,260 389 27,649

Prot for the year 2,433 - 2,433

Other comprehensive income - (98) (98)

Total comprehensive income for the year 2,433 (98) 2,335

At 31 December 2020 29,693 291 29,984

Prot for the year 1,052 - 1,052

Other comprehensive income - 1,463 1,463

Total comprehensive income for the year 1,052 1,463 2,515

At 31 December 2021 30,745 1,754 32,499

Australian Medical Association Annual Report 2021 57

Consolidated

2021 2020

Note $’000 $’000

Cash ow from operating activities

Receipts from membership subscriptions 13,293 13,356

Other receipts from customers 9,689 9,921

Payment to suppliers and employees (21,366) (20,712)

Interest received 17 41

Net cash ow from operating activities 1,633 2,606

Cash ow from investing activities

Payments for intangible assets 10 (78) (1,132)

Payments for property, plant and equipment 11 (306) (64)

Proceeds from investments 981 870

Payments for other investments (1,325) (1,151)

Net cash ow used in investing activities (728) (1,477)

Cash ow from nancing activities

Repayment of lease liabilities 13 (907) (949)

Net cash ow used in nancing activities (907) (949)

Net (decrease)/increase in cash held (2) 180

Cash and cash equivalents at the beginning of the year 8,405 8,225

Cash and cash equivalents at the end of the year 8,403 8,405

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2021

Note 1 Statement of Signicant Accounting Policies

The consolidated nancial statements and notes represent those of the Australian Medical

Association Limited (AMA) and its controlled entities (the AMA Group).

The separate nancial statements of the parent entity, Australian Medical Association

Limited, have not been presented within this nancial report as permitted by amendments

made to the Corporations Act 2001.

Basis of preparation

The nancial statements are general purpose nancial 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 nancial statements comply with the Australian Accounting

Standards - Reduced Disclosure Requirements as issued by the AASB. The AMA is a not for

prot entity for nancial reporting purposes under Australian Accounting Standards.

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

will result in nancial statements containing relevant and reliable information about

transactions, events and conditions. Compliance with Australian Accounting Standards

ensures that the nancial statements and notes also comply with International Financial

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

the nancial statements are presented below and have been consistently applied unless

otherwise stated.

The nancial statements have been prepared on an accruals basis and are based on

historical costs, modied, where applicable, by the measurement at fair value of selected

non-current assets, nancial assets and nancial liabilities.

The nancial statements were approved by the Board on 21 April 2022.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Australian Medical Association Annual Report 2021 59

Note 1 Statement of Signicant Accounting Policies (continued)

(a) Principles of consolidation

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

controlled by AMA at the end of the reporting period. A controlled entity is any entity that AMA

Limited has the power to govern the nancial and operating policies so as to obtain benets

from its activities.

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

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 23 to the nancial statements.

In preparing the consolidated nancial 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 nancial 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.

(b) Functional and presentation currency

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

functional currency of the Group.

The preparation of nancial statements requires management to make judgements, estimates

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

aect 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 Group.

Actual results may dier 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 aected.

Key estimates and judgements

Coronavirus (COVID-19) pandemic

Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19)

pandemic has had, or may have, on the consolidated entity based on known information. This

consideration extends to the nature of the products and services oered, customers, supply

chain, stang and geographic regions in which the Group operates. Other than as addressed

in specic notes, there does not currently appear to be either any signicant impact upon the

nancial statements or any signicant uncertainties with respect to events or conditions which

may impact the consolidated entity unfavourably as at the reporting date or subsequently as a

result of the Coronavirus (COVID-19) pandemic.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 1 Statement of Signicant Accounting Policies (continued)

Revenue from contracts with customers involving sale of goods

When recognising revenue in relation to the sale of goods to customers, the key performance

obligation of the Group is considered to be the point of delivery of the goods to the customer,

as this is deemed to be the time that the customer obtains control of the promised goods and

therefore the benets of unimpeded access.

Allowance for expected credit losses

The allowance for expected credit losses assessment requires a degree of estimation and

judgement. It is based on the lifetime expected credit loss, grouped based on days overdue,

and makes assumptions to allocate an overall expected credit loss rate for each group. These

assumptions include recent sales experience and historical collection rates.

Estimation of useful lives of assets

The Group determines the estimated useful lives and related depreciation and amortisation

charges for its property, plant and equipment and nite life intangible assets. The useful

lives could change signicantly as a result of technical innovations or some other event.

The depreciation and amortisation charge will increase where the useful lives are less than

previously estimated lives, or technically obsolete or non- strategic assets that have been

abandoned or sold will be written o or written down.

Impairment of non-nancial assets other than goodwill and other indenite life intangible

assets

The Group assesses impairment of non-nancial assets other than goodwill and other

indenite life intangible assets at each reporting date by evaluating conditions specic to

the Group and to the particular asset that may lead to impairment. If an impairment trigger

exists, the recoverable amount of the asset is determined. This involves fair value less costs

of disposal or value-in-use calculations, which incorporate a number of key estimates and

assumptions.

Income tax

The Group is subject to income taxes in the jurisdictions in which it operates. Signicant

judgement is required in determining the provision for income tax. There are many

transactions and calculations undertaken during the ordinary course of business for which

the ultimate tax determination is uncertain.

Employee benets provision

The liability for employee benets expected to be settled more than 12 months from the

reporting date are recognised and measured at the present value of the estimated future

cash ows to be made in respect of all employees at the reporting date. In determining the

present value of the liability, estimates of attrition rates and pay increases through promotion

and ination have been taken into account.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Australian Medical Association Annual Report 2021 61

Note 1 Statement of Signicant Accounting Policies (continued)

(d) Revenue recognition

Revenue is recognised for the major business activities upon satisfying the performance

obligations, using the methods outlined below.

Membership subscription

Revenue from membership subscriptions is recognised in prot 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.

Revenue from contracts with customers

Revenue is recognised at an amount that reects the consideration to which the Group is

expected to be entitled in exchange for transferring goods or services to a customer. For

each contract with a customer, the Group: identies the contract with a customer; identies

the performance obligations in the contract; determines the transaction price which takes

into account estimates of variable consideration and the time value of money; allocates the

transaction price to the separate performance obligations on the basis of the relative stand-

alone selling price of each distinct good or service to be delivered; and recognises revenue

when or as each performance obligation is satised in a manner that depicts the transfer to

the customer of the goods or services promised.

Variable consideration within the transaction price, if any, reects concessions provided to the

customer such as discounts, rebates and refunds, any potential bonuses receivable from the

customer and any other contingent events. Such estimates are determined using either the

‘expected value’ or ‘most likely amount’ method. The measurement of variable consideration is

subject to a constraining principle whereby revenue will only be recognised to the extent that

it is highly probable that a signicant reversal in the amount of cumulative revenue recognised

will not occur. The measurement constraint continues until the uncertainty associated with

the variable consideration is subsequently resolved. Amounts received that are subject to the

constraining principle are recognised as a refund liability.

Sale of goods

Revenue from the sale of goods is recognised at the point in time when the customer obtains

control of the goods, which is generally at the time of delivery.

Rendering of services

Revenue from a contract to provide services is recognised over time as the services are

rendered based on either a xed price or contractual performance obligations.

Doctors Health Services

Doctors Health Services relates to the administration of government funding for distribution

to doctors’ health program providers and the Telehealth grant. Where performance

obligations under the contract are not suciently specic, the Group recognises revenue

when it gains control of (or has the right to receive) the asset (cash).

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.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 1 Statement of Signicant Accounting Policies (continued)

(d) Revenue recognition (continued)

Interest income

Interest income from a nancial asset is recognised when it is probable that the economic

benets will ow to the Group and the amount of revenue can be measured reliably.

Dividend income

Dividend income from investments is recognised when the shareholder’s right to receive

payment has been established (provided that it is probable that the economic benets will

ow to the Group and the amount of income can be measured reliably).

Grant income

Grant income is recognised in prot or loss when the Group satises the performance

obligations stated within the funding agreements. If conditions are attached to the grant

which must be satised before the Group is eligible to retain the contribution, the grant

will be recognised in the statement of nancial position as a liability until those conditions

aresatised.

(e) Finance income and expense

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

as it accrues in prot and loss, using the eective interest method.

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

recognised in prot or loss using the eective interest method.

(f) Tax consolidation and income tax

The income tax expense or benet for the period is the tax payable on that period’s taxable

income based on the applicable income tax rate for each jurisdiction, adjusted by the changes

in deferred tax assets and liabilities attributable to temporary dierences, unused tax losses

and the adjustment recognised for prior periods, where applicable.

Deferred tax assets and liabilities are recognised for temporary dierences at the tax rates

expected to be applied when the assets are recovered or liabilities are settled, based on those

tax rates that are enacted or substantively enacted, except for:

- When the deferred income tax asset or liability arises from the initial recognition of goodwill

or an asset or liability in a transaction that is not a business combination and that, at the

time of the transaction, aects neither the accounting nor taxable prots; or

- When the taxable temporary dierence is associated with interests in subsidiaries, and the

timing of the reversal can be controlled and it is probable that the temporary dierence will

not reverse in the foreseeable future.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Australian Medical Association Annual Report 2021 63

Note 1 Statement of Signicant Accounting Policies (continued)

(f) Tax consolidation and income tax (continued)

Deferred tax assets are recognised for deductible temporary dierences and unused tax

losses only if it is probable that future taxable amounts will be available to utilise those

temporary dierences and losses.

The carrying amount of recognised and unrecognised deferred tax assets are reviewed at

each reporting date. Deferred tax assets recognised are reduced to the extent that it is no

longer probable that future taxable prots will be available for the carrying amount to be

recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is

probable that there are future taxable prots available to recover the asset.

Deferred tax assets and liabilities are oset only where there is a legally enforceable right to

oset current tax assets against current tax liabilities and deferred tax assets against deferred

tax liabilities; and they relate to the same taxable authority on either the same taxable entity

or dierent taxable entities which intend to settle simultaneously.

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

an income tax consolidated group under the tax consolidation legislation with eect 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 or 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. Dierences 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 Oce (ATO) is included as

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

are stated with the amount of GST excluded.

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

of cash ows arising from investing and nancing activities, which are recoverable from or

payable to the ATO are classied as operating cash ows.

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or

payable to, the tax authority.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 1 Statement of Signicant Accounting Policies (continued)

(h Investments and other ﬁnancial assets

Investments and other nancial assets are initially measured at fair value. Transaction

costs are included as part of the initial measurement, except for nancial assets at fair

value through prot or loss. Such assets are subsequently measured at either amortised

cost or fair value depending on their classication. Classication is determined based on

both the business model within which such assets are held and the contractual cash ow

characteristics of the nancial asset unless an accounting mismatch is being avoided.

Financial assets are derecognised when the rights to receive cash ows have expired or have

been transferred and the consolidated entity has transferred substantially all the risks and

rewards of ownership. When there is no reasonable expectation of recovering part or all of a

nancial asset, it’s carrying value is written o.

Financial assets at fair value through prot or loss

Financial assets not measured at amortised cost or at fair value through other comprehensive

income are classied as nancial assets at fair value through prot or loss. Typically, such

nancial assets will be either: (i) held for trading, where they are acquired for the purpose of

selling in the short-term with an intention of making a prot, or a derivative; or (ii) designated

as such upon initial recognition where permitted. Fair value movements are recognised in

prot or loss.

Financial assets at fair value through other comprehensive income

Financial assets at fair value through other comprehensive income include equity investments

which the Group intends to hold for the foreseeable future and has irrevocably elected to

classify them as such upon initial recognition.

Impairment of nancial assets

The Group recognises a loss allowance for expected credit losses on nancial assets which

are either measured at amortised cost or fair value through other comprehensive income.

The measurement of the loss allowance depends upon the Group’s assessment at the end

of each reporting period as to whether the nancial instrument’s credit risk has increased

signicantly since initial recognition, based on reasonable and supportable information that is

available, without undue cost or eort to obtain.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Australian Medical Association Annual Report 2021 65

Note 1 Statement of Signicant Accounting Policies (continued)

(h) Investments and other ﬁnancial assets (continued)

Where there has not been a signicant increase in exposure to credit risk since initial

recognition, a 12- month expected credit loss allowance is estimated. This represents a

portion of the asset’s lifetime expected credit losses that is attributable to a default event that

is possible within the next 12 months. Where a nancial asset has become credit impaired or

where it is determined that credit risk has increased signicantly, the loss allowance is based

on the asset’s lifetime expected credit losses. The amount of expected credit loss recognised

is measured on the basis of the probability weighted present value of anticipated cash

shortfalls over the life of the instrument discounted at the original eective interest rate.

For nancial assets mandatorily measured at fair value through other comprehensive income,

the loss allowance is recognised in other comprehensive income with a corresponding

expense through prot or loss. In all other cases, the loss allowance reduces the asset’s

carrying value with a corresponding expense through prot or loss.

(i) Financial liabilities

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

Subsequent to initial recognition, the nancial liabilities are measured at amortised cost using

the eective interest rate method. Financial liabilities comprise loans and borrowings, trade

and other payables.

(j) 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.

(k) 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 classied as current assets. All other

receivables are classied as non-current assets.

(l) 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.

(m) Inventories

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

is based on the rst-in rst-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.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 1 Statement of Signicant Accounting Policies (continued)

(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.

When parts of an item of property, plant and equipment have dierent 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 prot or loss.

Depreciation

Depreciation is recognised in prot 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:

2021 2020

Buildings 2.5% - 4% 2.5% - 4%

Oce Furniture 5% - 25% 5% - 25%

Oce Equipment 10% - 50% 10% - 50%

Fixture and Fittings 5% - 10% 5%

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

Items less than $300 100% 100%

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

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Australian Medical Association Annual Report 2021 67

Note 1 Statement of Signicant Accounting Policies (continued)

(o) Intangible assets

Intangible assets that are acquired by the Group, which have nite 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 benets

embodied in the specic asset to which it relates. All other expenditure, including expenditure

on internally generated goodwill and brands, is recognised in prot or loss when incurred.

Research and development

Research costs are expensed in the period in which they are incurred. Development costs are

capitalised when it is probable that the project will be a success considering its commercial

and technical feasibility; the Group is able to use or sell the asset; the Group has sucient

resources and intent to complete the development; and its costs can be measured reliably.

Capitalised development costs are amortised on a straight-line basis over the period of their

expected benet.

Amortisation

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

less its residual value.

Amortisation is recognised in prot 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:

2021 2020

Development 20% - 33.33% 20% - 33.33%

Computer software 10% - 25% 10% - 25%

Amortisation methods, useful lives and residual values are reviewed at each nancial year-end

and adjusted if appropriate.

(p) Right-of-use assets and lease liabilities

Right-of-use assets

A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset

is measured at cost, which comprises the initial amount of the lease liability, adjusted for, as

applicable, any lease payments made at or before the commencement date net of any lease

incentives received, any initial direct costs incurred, and, except where included in the cost of

inventories, an estimate of costs expected to be incurred for dismantling and removing the

underlying asset, and restoring the site or asset.

Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the

lease or the estimated useful life of the asset, whichever is the shorter. Where the consolidated

entity expects to obtain ownership of the leased asset at the end of the lease term, the

depreciation is over its estimated useful life. Right-of use assets are subject to impairment or

adjusted for any remeasurement of lease liabilities.

The Group has elected not to recognise a right-of-use asset and corresponding lease liability

for short-term leases with terms of 12 months or less and leases of low-value assets. Lease

payments on these assets are expensed to prot or loss as incurred.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 1 Statement of Signicant Accounting Policies (continued)

(p) Right-of-use assets and lease liabilities (continued)

Lease liabilities

A lease liability is recognised at the commencement date of a lease. The lease liability is initially

recognised at the present value of the lease payments to be made over the term of the

lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily

determined, the Group’s incremental borrowing rate. Lease payments comprise of xed

payments less any lease incentives receivable, variable lease payments that depend on an

index or a rate, amounts expected to be paid under residual value guarantees, exercise price

of a purchase option when the exercise of the option is reasonably certain to occur, and any

anticipated termination penalties. The variable lease payments that do not depend on an index

or a rate are expensed in the period in which they are incurred.

Lease liabilities are measured at amortised cost using the eective interest method. The

carrying amounts are remeasured if there is a change in the following: future lease payments

arising from a change in an index or a rate used; residual guarantee; lease term; certainty of a

purchase option and termination penalties. When a lease liability is remeasured, an adjustment

is made to the corresponding right-of use asset, or to prot or loss if the carrying amount of

the right-of-use asset is fully written down.

(q) Impairment

Financial assets

Trade receivables

The Group applies the AASB 9 simplied approach to measuring expected credit losses which

uses a lifetime expected loss allowance for all trade and other receivables.

To measure the expected credit losses, trade and other receivables have been grouped

based on shared credit risk characteristics and the days past due. The historical loss rates

are adjusted to reect current and forward-looking information on macroeconomic factors

aecting the ability of the customers to settle the receivables.

Trade receivables are written o when there is no reasonable expectation of recovery.

Indicators that there is no reasonable expectation of recovery include, amongst others, the

failure of a debtor to engage in a repayment plan with the Group.

Impairment losses on trade receivables are presented as net impairment losses within

operating prot. Subsequent recoveries of amounts previously written o are credited against

the same line item.

Investments

All of the Group’s investments at amortised cost and FVOCI are considered to have low credit

risk, and the loss allowance recognised during the period was therefore limited to 12 months

expected losses. Management consider ‘low credit risk’ when they have a low risk of default and

the issuer has a strong capacity to meet its contractual cash ow obligations in the near term.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Australian Medical Association Annual Report 2021 69

Note 1 Statement of Signicant Accounting Policies (continued)

(r) Employee Beneﬁts

Short-term benets

Liabilities for employee benets 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 benets is the amount of future

benet that employees have earned in return for their service in the current and prior periods

plus related on costs. That benet 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.

(s) Contract liabilities

Contract liabilities represent the Group’s obligation to transfer goods or services to a customer

and are recognised when a customer pays consideration, or when the Group recognises a

receivable to reect its unconditional right to consideration (whichever is earlier) before the

Group has transferred the goods or services to the customer.

(t) Refund liabilities

Refund liabilities are recognised where the Group receives consideration from a customer

and expects to refund some, or all, of that consideration to the customer. A refund liability is

measured at the amount of consideration received or receivable for which the Group does

not expect to be entitled and is updated at the end of each reporting period for changes in

circumstances. Historical data is used across product lines to estimate such returns at the time

of sale based on an expected value methodology.

(u) Parent entity ﬁnancial information

The nancial information for the Parent Entity, as disclosed in Note 22 has been prepared on

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

Investments in controlled entities

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

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

statement of comprehensive income.

(v) Comparative ﬁgures

When required by Accounting Standards, comparative gures have been adjusted to conform

with changes in presentation for the current nancial year. Comparatives are adjusted for

reclassied items in the nancial statements.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 2 Revenue and Expenses

Consolidated

2021 2020

$’000 $’000

Revenue

Membership subscriptions 12,284 12,232

Database and data sales 3,887 3,565

Editorial 1,004 907

Commercial and member services 1,233 1,262

Doctors Health Services including Telehealth grant 1,486 1,410

Interest 17 41

Interest from investments at fair value through

other comprehensive income

981 870

Other income

Government assistance - Jobkeeper - 587

Government assistance - Cash ow boost - 257

Other revenue including recoveries 1,018 797

21,910 21,928

Expenses

Contributions to employee superannuation plans 992 930

Cost of goods sold 17 48

Repairs and maintenance 64 100

Subsidies

Subsidies to AMA States and Territories 1,282 1,188

Other subsidies 63 39

1,345 1,227

Administration

Loss on disposal of assets 67 3

Insurance 74 83

Travel and accommodation 60 135

Other 1,770 1,330

1,971 1,551

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Australian Medical Association Annual Report 2021 71

Note 3 Auditor’s Remuneration

Consolidated

2021 2020

$’000 $’000

Audit services

Auditors of the Group

Audit of nancial report 56 64

Other services

Auditors of the Group

Taxation services 17 20

73 84

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 4 Income tax credit/(expense)

Consolidated

2021 2020

$’000 $’000

Current tax credit/(expense)

Current tax on prots for the year - -

- -

Deferred tax credit/(expense)

Origination and reversal of temporary dierences 70 436

Prior year adjustments 387 (180)

457 256

Total income tax credit/(expense) in income statement 457 256

Prot before income tax (595) (2,177)

Income tax using the domestic corporation tax rate 26%

(2020: 26%) (155) (566)

Increase in income tax expense due to:

Mutual expenditure (3,015) (2,910)

Non-deductible expenses (1) (1)

Sundry (62) (18)

(3,078) (2,929)

Decrease in income tax expense due to:

Mutual income 3,261 3,743

Fully franked dividends 42 -

Sundry - 188

3,303 3,931

Net change in income tax 70 436

Over/(under) provision for prior year

- deferred tax expense

387 (180)

Income tax credit/(expense) 457 256

Attributable to:

Continuing operations 457 256

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Australian Medical Association Annual Report 2021 73

Note 5 Cash and Cash Equivalents

Consolidated

2021 2020

Note $’000 $’000

Cash at bank 17(b) 5,103 5,055

Short-term deposits (less than 3 months' maturity) 17(b) 3,300 3,349

Cash on hand - 1

Total Cash and cash equivalents 17 8,403 8,405

(i) Classication of cash equivalents

Short-term deposits are presented as cash equivalents if they have a maturity of three

months or less from the date of acquisition.

(ii) Restricted cash and short-term deposits

The cash and cash equivalents disclosed above and in the statement of cash ows include

$1.1 million (2020: $1.3 million), which are held by Doctors Health Services Pty Ltd. These

monies are subject to grant funding arrangement restrictions and are therefore not

available for general use by the other entities within the Group.

Note 6 Trade and other receivables

Trade receivables 648 541

Other receivables 1,444 1,201

Total Trade and other receivables 17 2,092 1,742

(i) Classication as trade and other receivables

Trade receivables are amounts due from customers for goods sold or services performed

in the ordinary course of business. Other receivables generally arise from transactions

outside the usual operating activities of the Group. Collateral is not normally obtained.

If collection of the amounts is expected in one year or less, they are classied as current

assets. If not, they are presented as non-current assets. Trade receivables are generally due

for settlement within 30 days and therefore are all classied as current. The Group holds

the trade receivables with the objective to collect the contractual cash ows and therefore

measures them subsequently at amortised cost using the eective interest method. The

Group’s impairment and other accounting policies for trade and other receivables are

outlined in notes 1(k) and 1(q) respectively.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 7 Inventories

Consolidated

2021 2020

Note

$’000 $’000

Finished goods 32 14

Total Inventories 32 14

Note 8 Prepayments

Prepayments 213 253

Total prepayments 213 253

Note 9 Financial investments

Current assets

Financial assets at amortised cost

Short-term deposits (more than 3 months' maturity) 17 1,625 437

Total Current 1,625 437

Non-current assets

Financial assets at fair value through other comprehensive

income

Managed securities fund 17 22,537 20,455

Total Non-current 22,537 20,455

Total Financial investments 24,162 20,892

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Australian Medical Association Annual Report 2021 75

(a) Financial assets at amortised cost

(i) Classication of nancial assets at amortised cost

The Group classies its nancial assets as at amortised cost only if both of the following

criteria are met:

• The asset is held within a business model whose objective is to collect the contractual

cash ows; and

• The contractual terms give rise to cash ows that are solely payments of principal and

interest

(b) Financial assets at fair value through other comprehensive income

(i) Classication of nancial assets at fair value through other comprehensive income

Financial assets at fair value through other comprehensive income (FVOCI) comprise:

• Equity securities which are not held for trading and which the Group has irrevocably

elected at initial recognition to recognise in this category.

• Debt securities where the contractual cash ows are solely principal and interest and the

objective of the Group’s business model is achieved both by collecting contractual cash

ows and selling nancial assets.

(ii) Equity investments at fair value through other comprehensive income

On disposal of these equity investments, any related balance within the FVOCI reserve is

reclassied to retained earnings.

(iii) Debt investments at fair value through other comprehensive income

On disposal of these debt investments, any related balance within the FVOCI reserve is

reclassied to prot or loss.

(i) Classication of nancial assets at fair value through prot or loss

The Group classies the following nancial assets at fair value through prot or loss (FVPL):

• Debt investments that do not qualify for measurement at either amortised cost or FVOCI

• Equity investments that are held for trading; and

• Equity investments for which the entity has not elected to recognise fair value gains and

losses through OCI.

Note 9 Financial investments (continued)

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 10 Intangible assets

Consolidated

2021 2020

$’000 $’000

Development - at cost 752 752

Less: Accumulated amortisation (451) (194)

301 558

Computer software - at cost 1,694 717

Less: Accumulated amortisation (638) (429)

1,056 288

Development in progress - at cost - 944

- 944

Total Intangible assets 1,357 1,790

Movement in carrying amounts:

Development

Computer

software

Development

in progress

Total

$’000 $’000

31 December 2020

Opening written down

value 184 356 334 874

Additions - 23 1,109 1,132

Transfer 499 - (499) -

Amortisation (125) (91) - (216)

Closing written down

value 558 288 944 1,790

31 December 2021

Opening written

down value 558 288 944 1,790

Additions - - 78 78

Transfer - 1,022 (1,022) -

Amortisation (257) (254) - (511)

Closing written

down value 301 1,056 - 1,357

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Australian Medical Association Annual Report 2021 77

Note 11 Property, plant and equipment

Consolidated

2021 2020

$’000 $’000

Property, Parap Rd, Parap - at cost 381 381

Less: Accumulated depreciation (98) (89)

283 292

Oce furniture - at cost 474 570

Less: Accumulated depreciation (326) (524)

148 46

Oce equipment - at cost 1,003 866

Less: Accumulated depreciation (769) (763)

234 103

Fixtures and ttings - at cost 1,185 91

Less: Accumulated depreciation (55) (59)

1,130 32

Computer hardware - at cost 424 439

Less: Accumulated depreciation (355) (394)

69 45

Total Property, plant and equipment 1,864 518

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

December 2021 and valued at $400,000. Territory Property Consultants Pty Ltd prepared

the valuation. As the valuation was in excess of the written down value disclosed in the

nancial statements, no adjustment is necessary nor has been made within the nancial

statements. It is the Group’s accounting policy to obtain a valuation every 5 years.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 11 Property, plant and equipment (continued)

Movement in carrying amount: Opening written

down value

Additions Disposals Depreciation Transfer

Closing written

down value

Consolidated $’000 $’000 $’000 $’000 $’000 $’000

31 December 2020

Property, Parap Rd Parap 301 - - (9) - 292

Oce furniture 94 30 - (104) 26 46

Oce equipment 150 13 (2) (32) (26) 103

Fixture and ttings 36 - - (4) - 32

Computer hardware 69 21 (1) (44) - 45

650 64 (3) (193) - 518

31 December 2020

Property, Parap Rd Parap 292 - - (9) - 283

Oce furniture 46 157 (25) (30) - 148

Oce equipment 103 197 (23) (43) - 234

Fixture and ttings 32 1,121 (6) (17) - 1,130

Computer hardware 45 71 (11) (36) - 69

518 1,546 (65) (135) - 1,864

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Australian Medical Association Annual Report 2021 79

Note 12 Deferred tax assets and liabilities

Deferred Tax Assets

Deferred Tax

Liabilities

Total

Consolidated

2021

2020 2021 2020 2021 2020

$'000 $’000 $’000 $’000 $’000 $’000

Leases 52 - - (297) 52 (297)

Property, plant and equipment - - (11) (13) (11) (13)

Income in advance - - (103) (269) (103) (269)

Employee benets 246 148 - - 246 148

Investments - - (584) (102) (584) (102)

Others 1 47 - - 1 47

Carried forward losses 677 789 - - 677 789

Total Deferred tax assets/

(liabilities) 976 984 (698) (681) 278 303

Movement in temporary

dierences:

Leases

Property,

plant and

equipment

Income in

advance

Employee

benets

Invest-

ments

Others

Carried

forward

losses

Total

Consolidated $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

31 December 2020

Opening written down value (193) 19 (382) 132 (148) 46 527 1

Recognised in income statement (104) (32) 113 16 - 1 262 256

Recognised in equity - - - - 46 - - 46

Closing written down value (297) (13) (269) 148 (102) 47 789 303

31 December 2021

Opening written down value (297) (13) (269) 148 (102) 47 789 303

Recognised in income statement 349 2 166 98 - (46) (112) 457

Recognised in equity - - - - (482) - - (482)

Closing written down value 52 (11) (103) 246 (584) 1 677 278

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 13 Leases

Building

Consolidated

Equipment Total

$’000 $’000 $’000

(i) Amounts recognised in the balance

sheet

Assets

Right-of-use assets

31 December 2020

Opening written down value 1,567

1,567

Additions 1,257

1,257

Depreciation (798)

(798)

Closing written down value 2,026

2,026

31 December 2021

Opening written down value 2,026 - 2,026

Additions 4,402 125 4,527

Depreciation (1,021) (3) (1,024)

Closing written down value 5,407 122 5,529

Consolidated

2021 2020

$’000 $’000

Liabilities

Lease liabilities

Current 900 847

Non-current 6,073 1,283

6,973 2,130

Make good provision

Non-current 159 -

As at 31 December 2021, the Group has three oce leases and one IT equipment lease.

During the year, the Group entered into a new 12 year oce lease ending 30 June 2033 at

Level 1, 39 Brisbane Avenue, Barton ACT. In accordance with note 1(p) and AASB 16 Leases,

the Group has recognised a right-of-use asset and lease liability at the commencement of

the lease.

(ii) Amounts recognised in the statement of

prot or loss

Interest expense 142 61

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Australian Medical Association Annual Report 2021 81

Note 15 Employee benets

Current

Long service leave provision 569 526

Annual leave provision 1,019 826

1,588 1,352

Non-current

Long service leave provision 223 112

Total Employee benets 1,811 1,464

The employee benets liability includes all of the accrued annual leave, the unconditional

entitlements to long service leave where employees have completed the required period

of service and also those where employees are entitled to pro-rata payments.

Note 16 Income tax payable

Income tax payable - -

Total Income tax payable - -

The income tax receivable/(payable) for the Group represents the amount of income taxes

credit/(payable) in respect of current and prior periods.

Note 14 Trade and other payables

Consolidated

2021 2020

$’000 $’000

Trade payables 301 360

Other payables and accruals 1,596 1,236

Income in advance 591 769

Total Trade and other payables 2,488 2,365

Trade payables are unsecured and are usually paid within 30 days of recognition.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

(iii) Amounts recognised in the statement of

cash ows

Lease payments 907 949

(iv) Non-cash investing and nancing

activities

Acquisition of oce t-outs and furniture

from lessor as lease incentive

1,240

Note 13 Leases (continued)

Note 17 Financial Instruments and Risk Management

Risk management

The Board of Directors, through its Audit, Risk and Performance Committee and Investment

Committee, manages the nancial risks relating to the operations of the Group. The Group

adopts prudent risk based management procedures. The Audit, Risk and Performance

Committee oversees compliance with the Group’s risk management procedures and the

Investment Committee oversees nancial asset management. The Group does not enter into

or trade nancial instruments for speculative purposes.

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

(a) Credit risk

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

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

with credit worthy counter parties and obtaining sucient collateral or other security where

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

The carrying amount of the Group’s nancial assets represents the maximum credit

exposure.

Consolidated

2021 2020

Note $’000 $’000

Financial assets

Cash and cash equivalents 5 8,403 8,405

Trade and other receivables 6 2,092 1,742

Financial assets at amortised costs 9 1,625 437

Financial assets at fair value through

other comprehensive income

9 22,537 20,455

34,657 31,039

The Group does not have any signicant credit risk exposure to any single counterparty or

any group of counterparties having similar characteristics. The carrying amount of nancial

assets recorded in the nancial statements, net of any allowances for losses, represents the

Group’s maximum exposure to credit risk.

The other classes within trade and other receivables do not contain impaired assets and are

not past due. Based on the credit history of these other classes, it is expected that these

amounts will be received when due. The Group does not hold any collateral in relation to

these receivables.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Australian Medical Association Annual Report 2021 83

Note 17 Financial Instruments and Risk Management (continued)

(b) Market risk

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

and equity prices will aect the Group’s income. The objective of market risk management

is to manage and control market risk exposure within acceptable parameters whilst

optimisingreturns.

(i) Interest risk

At the reporting date the interest rate prole of the Group’s interest-bearing nancial

instruments was:

Consolidated

2021 2020

Note $’000 $’000

Variable rate instruments

Financial assets

Cash at bank 5 5,103 5,055

5,103 5,055

Fixed rate instruments

Financial assets at amortised costs

Short term deposits

- less than 3 months' maturity 5 3,300 3,349

- more than 3 months' maturity 9 1,625 437

4,925 3,786

(ii) Currency risk

Currency risk is the risk that the future cash ows of a nancial instrument will uctuate

because of changes in foreign currency. The Group’s exposure to currency rate risk is

immaterial as the Group trades predominantly in Australian dollars.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 17 Financial Instruments and Risk Management (continued)

(b) Market risk (continued)

(iii) Price risk

Consolidated

2021 2020

Note $’000 $’000

Financial assets

Non-current assets

Financial assets at fair value through

other comprehensive income

Managed fund - Australian securities 15,833 13,472

Managed fund - International securities 6,704 6,983

9 22,537 20,455

Exposure

Certain investments are designated as at fair value through prot and loss as these are

short term investments that are primarily for meeting operational expenditure. The Group’s

exposure to equity securities price risk arises from investments held by the Group and

classied in the balance sheet as at fair value through other comprehensive income (FVOCI).

The main purpose of FVOCI investments are to provide long term funding to the Group.

While income and realised capital gains may be used to meet shortfalls in operational

expenditure, ordinarily though, the income and any realised capital gains generated are

expected to be retained for reinvestment.

To manage its price risk arising from investments, the Group diversies its portfolio through

managed funds, assisted by external advisers and endorsed by the Board through its

Investment Committee.

Liquidity risk is the risk that the Group will not be able to meet its normal nancial

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ows.

(d) Fair values versus carrying amount

The fair values of nancial assets and liabilities, are not signicantly dierent from the

carrying amounts shown in the Statement of Financial Position.

(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.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Australian Medical Association Annual Report 2021 85

Note 18 Commitments

Consolidated

2021 2020

$’000 $’000

Expenditure commitment:

Not later than 1 year 37 207

Later than 1 year but not later than 5 years 95 -

132 207

Commitments receivable

Not later than 1 year 61 35

Later than 1 year but not later than 5 years 192 -

253 35

The Australian Medical Association Limited (AMA) renewed its on-going Memorandum of

Understanding with the Australian Medical Students’ Association Limited (AMSA), which

continues to provide nancial support in the form of cash sponsorship, direct employment

and in-kind back oce support.

Note 19 Directors and Executive disclosure

During the year the Group paid a premium to insure the Directors and Ocers of the Group

as disclosed in the Directors Report.

The Directors and Key Management Personnel are remunerated in the form of salaries or

under contract as follows.

Consolidated

2021 2020

$’000 $’000

Total remuneration 2,814 3,373

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 nancial year and there were no

material contracts involving Directors’ interests subsisting at year end.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 20 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:

Consolidated

2021 2020

$’000 $’000

The Indigenous Peoples' Medical Scholarship Trust Fund 51,178 61,005

The AMA Indigenous Medical Scholarship Foundation 217,301 190,717

268,479 251,722

AMA Pty Limited acts as trustee for the Indigenous Peoples’ Medical Scholarship Trust Fund

and the AMA Indigenous Medical Scholarship Foundation. However, as the Fund does not

have a Deductible Gift Recipient (DGR) status, a new DGR and Australian Charities and Not-

for-prots Commission (ACNC) compliant fund, the AMA Indigenous Medical Scholarship

Foundation, was established in 2016. It provides scholarships to assist Aboriginal and Torres

Strait Islander people in tertiary courses at Australian universities, undertaking courses of

study leading to registration as a medical practitioner.

Note 21 Subsequent events

A Deed of Transfer was signed between AMA Limited and AMA Services (WA) Pty Ltd

to transfer all assets and liabilities relating to Doctorportal Learning Pty Ltd from 1

January 2022 for a cash consideration of $1. As at 31 December 2021, the net assets of

Doctorportal Learning Pty Ltd was $1.

No other matter or circumstance has arisen since the end of the nancial year to the date of

this report, which has signicantly aected or may signicantly aect the operations of the

economic entity, the results of those operations or the state of aairs of the economic entity

in subsequent nancial years.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Australian Medical Association Annual Report 2021 87

Note 22 Parent entity

As at, and throughout the nancial year ended 31 December 2021, 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.

2021 2020

$’000 $’000

(a) Financial information

Earnings before interest and tax (1,240) (487)

Interest income 862 799

(Loss)/prot before tax (378) 312

Trust distribution - AMA Property Trust - 7,011

Income tax credit/(expense) * 458 256

Prot for the year 80 7,579

Changes in fair value of investments at fair value through

other comprehensive income (net of income tax) 1,294 (62)

Total comprehensive prot 1,374 7,517

* The parent entity, the Australian Medical Association Limited, is the head entity for the

income tax consolidated group and it provides income tax subsidies to its subsidiary

companies within the Group.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note 22 Parent entity (continued)

2021 2020

$’000 $’000

Statement of nancial position

Assets

Current assets 6,292 5,504

Non-current assets 27,311 20,475

Total assets 33,603 25,979

Liabilities

Current liabilities 2,505 2,090

Non-current liabilities 7,426 1,591

Total liabilities 9,931 3,681

Equity

Retained earnings 22,154 22,073

Reserve 1,518 225

Total equity 23,672 22,298

(b) Other commitments

There have been no contractual commitments entered into by the Australian Medical

Association Limited for the acquisition of property, plant or equipment.

There are no contingent liabilities at the reporting date.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Australian Medical Association Annual Report 2021 89

Note 23 Related party transactions

Subsidiaries

Interests in subsidiaries are set out below.

Consolidated

2021 2020

$’000 $’000

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 NT Pty Ltd 1 1

Doctors Health Services Pty Ltd 1 1

Doctorportal Learning Pty Ltd 1 1

6 6

The consolidated nancial statements incorporate the assets, liabilities and results of the

following subsidiaries in accordance with the accounting policy described in Note 1.

Equity holding

Class of

2021 2020

Name of entity

shares % %

Australasian Medical Publishing Company

Proprietary Limited

Ordinary

100 100

AMA Pty Limited Ordinary 100 100

AMA NT Pty Ltd Ordinary 100 100

Doctors Health Services Pty Ltd Ordinary 100 100

Doctorportal Learning Pty Ltd Ordinary 100 100

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

The parent entity, the Australian Medical Association Limited, is a company limited by

guarantee, incorporated and domiciled in Australia. The registered oce of the Company

is Level 1, 39 Brisbane Avenue, Barton ACT 2600. The Company 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 oce of this company

is Level 19, Town Hall House, 456 Kent St, Sydney NSW 2000. This company publishes

the 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 oce of this company is Level 1, 39 Brisbane Avenue, Barton ACT 2600. This

company acts as trustee for the Indigenous Peoples’ Medical Scholarship Trust Fund and

the AMA Indigenous Medical Scholarship Foundation.

AMA NT Pty Ltd is a company limited by shares, incorporated and domiciled in Australia.

The registered oce of this company is Level 1, 39 Brisbane Avenue, 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.

Doctors Health Services Pty Ltd is a company limited by shares, incorporated and domiciled

in Australia. The registered oce of this company is Level 1, 39 Brisbane Avenue, Barton,

ACT 2600. This company manages the delivery of health services for medical practitioners

and medical students.

Doctorportal Learning Pty Ltd is a company limited by shares, incorporated and domiciled

in Australia. The registered oce of this company is Level 1, 39 Brisbane Avenue, Barton,

ACT 2600. This company manages the delivery of online accredited medical education for

both members and non-members.

Note 23 Related party transactions (continued)

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Australian Medical Association

In the directors’ opinion:

1. the attached nancial statements and notes comply with the Corporations Act 2001, the Australian Accounting

Standards - Reduced Disclosure Requirements, the Corporations Regulations 2001 and other mandatory

professional reporting requirements;

2. the attached nancial statements and notes give a true and fair view of the Group’s nancial position as at 31

December 2021 and of its performance for the nancial year ended on that date;

3. there are reasonable grounds to believe that the Group will be able to pay its debts as and when they become

due and payable; and

Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations

Act2001.

On behalf of the directors

Dr Omar Khorshid

President

Australian Medical Association Limited

Dr Rosanna Capolingua

Chair

Australian Medical Association Limited

Annual Report 2021 91

92 Australian Medical Association

93Annual Report 2021

Australian Medical Association

Level 1, 39 Brisbane Avenue,

Barton ACT 2600

Telephone: 02 6270 5400