The federal government has reportedly abandoned a key element of its May budget, the $7 co-payment on bulk-billed GP visits.
With parliament due to rise for the year on December 4, the government is engaged in last-minute lobbying to save some of its key budget measures that have stalled in the hostile Senate.
It was understood the GP co-payment was under review and the university overhaul was the subject of talks with Senate crossbenchers.
The ABC and other media outlets are reporting the unpopular co-payment is to be ditched in a "barnacle" clearing exercise.
The government announced the unpopular $7 doctor visit co-payment in the May budget. Of that $5 was to go into a proposed new Medical Research Future Fund.
Pre-budget speculation pointed to a $15 co-payment, but the budget outcome prompted a barrage of criticism from welfare groups, Labor and many others.
Minor party objections left the government most unlikely to get the measure through the Senate.
Earlier this week, Prime Minister Tony Abbott told a joint party room meeting he was hopeful of clearing "one or two barnacles" by the end of the year.
He wasn't referring to a reshuffle though, but policy issues dragging on the government.
A spokesman for Health Minister Peter Dutton dismissed reports that the co-payment had been dumped as media speculation.
Comment was being sought from Prime Minister Tony Abbott's office.
In an upbeat speech to the Australian Chamber of Commerce and Industry business leaders dinner in Canberra, Mr Abbott cited the government's achievements and gave no hint that he could be changing course on a key budget measure.
"By any fair measure it's been a successful year for the government. In politics there are no fair measures," he said, prompting laughter from the audience.
