Family First offers GP tax way forward

Key crossbench senator Bob Day says he could support the GP co-payment if the proposed rate is cut.

The Family First senator from South Australia has held talks with Treasurer Joe Hockey over controversial budget measures including the $7 per visit GP co-payment.

Senator Day said he supported the idea of a price signal to ease pressure on the health system, but $7 was a "bridge too far".

A co-payment of up to $3, with an exemption for pensioners and the chronically ill, could still save over $100 million a year.

"It's a good first step - let's see what happens with a minimal co-payment," Senator Day told Sky News on Friday.

The government should also dump the idea of the tax going into a new medical research fund, he said.

"This is trying to put something palatable on an unpalatable policy - there is no connection."

Labor and the Greens are firmly opposed to the co-payment, requiring the government to seek the support of six out of eight Senate crossbench members.