Dr Capolingua said the tax cuts would be welcomed by many Australians, but substantial new health funding would benefit all Australians.
"The larger than expected Budget surplus should be spent on health infrastructure, medical workforce, and improved patient access to hospitals, aged care, specialists and GPs," Dr Capolingua said.
"The ongoing crisis in public hospitals all over the country shows clearly that the health system is crying out for significant new funding.
"There is no better time for the Government to invest substantially in improving Indigenous health.
"Now is also the perfect opportunity to provide people in rural and regional Australia with health services equal to those available in the major cities.
"Using the huge Budget surplus to invest in the future health of the nation is the right thing to do."
The AMA's Key Health Issues for the 2007 Federal Election sets out priority areas for health funding, including:
· Indigenous health,
· Public hospitals,
· Medical workforce,
· Aged care,
· Primary prevention,
· Rural health, and
· Public health.