PM backs co-payment until Senate deal

Tony Abbott is standing by a $7 GP co-payment, but has flagged the need for compromise with the Senate.

Prime Minister Tony Abbott has backed down on defence entitlements. (AAP)

Prime Minister Tony Abbott insists his government remains committed to introducing the $7 GP visit co-payment.

However, he's flagged the final design of what Labor dubs a "GP tax" would depend on Senate negotiations.

"We support the co-payment, always have and will, until such time as a satisfactory arrangement is negotiated with people in the Senate," Mr Abbott told reporters in Canberra on Monday.

The government has been under pressure to explain its position after the Prime Minister's Office last week indicated to some journalists the government was planning to dump the co-payment.

This was refuted the next day by senior cabinet ministers, including Treasurer Joe Hockey.

"It's never been our position," Mr Abbott.

The government has yet to introduce legislation for the co-payment because of opposition in the Senate, with Labor, the Greens and crossbenchers all against the $7 charge.

Clive Palmer on Monday declared the co-payment "finished".

"Palmer United, make no mistake about it, has killed the co-payment," the PUP leader told the National Press Club in Canberra.