KIM LANDERS: Well, despite a week of arguing to the contrary, the Federal Opposition Leader Bill Shorten has conceded that the Government does not have a current policy to privatise Medicare.

But as the election draws closer, the Labor leader is still warning that it could happen under a re-elected Coalition government.

The Prime Minister, Malcolm Turnbull, says Bill Shorten has been "caught out lying".

From Canberra, Naomi Woodley reports.

NAOMI WOODLEY: In the final two weeks of the campaign, the Labor party has dramatically escalated its attack on the Government over Medicare, repeatedly accusing it of planning a privatisation.

BILL SHORTEN: You don't set up a Medicare privatisation taskforce unless you intend to privatise Medicare.

NAOMI WOODLEY: The Prime Minister has responded by ruling out any change or outsourcing of the Medicare services the Government currently provides.

In the past few days the Labor leader, Bill Shorten, has begun to nuance his argument and he was challenged by Leigh Sales on the ABC's 7:30 last night.

LEIGH SALES: Can you put your hand on your heart and look Australians in the eye and say that the Coalition has a policy to privatise Medicare?

BILL SHORTEN: I can say to the people of Australia that this election and their vote on July 2 will determine the future of Medicare.

LEIGH SALES: Is the Coalition privatising Medicare?

BILL SHORTEN: You've asked me to talk to the Australian people here and I just want to take another 30 seconds and answer your first question.

On July 2, Australians will have a choice. It'll be about the future of Medicare.

NAOMI WOODLEY: At a press conference in Darwin today, Bill Shorten acknowledged the Prime Minister has said the payments system won't be outsourced.

BILL SHORTEN: So what he's done is he's doubled down and he's said, "Listen on this issue we won't do anything at the time, we won't do anymore for the time being," and so he's had a look at this taskforce and he's said that, "Well we're not going to go ahead with that for the time being".

But if you believe that Malcolm Turnbull's basic DNA disposition is not to privatise assets, well, that's up to you.

I just don't believe him.

NAOMI WOODLEY: But he says the Government's other plans, including the continuation of the freeze on GP rebates until 2020 and the cut to bulk-billing incentives for pathology are all evidence of his claims.

BILL SHORTEN: Does anyone really believe that Malcolm Turnbull's turned his back on his faith in privatisation for any other reason than the electoral necessity and the backlash of an Australian people.

But what we're saying to Malcolm Turnbull is that if you want to back off for the time being on one part of your plan to undermine Medicare, then you should back off on the lot.

NAOMI WOODLEY: Labor is maintaining its focus on Medicare, because it is seen as a traditional area of strength for the Opposition, and it has put the Government on the defensive.

But the Prime Minister has now seized on Bill Shorten's latest language.

MALCOLM TURNBULL: The real issue is that Mr Shorten's been caught out lying, hasn't he?

He has been lying about Medicare and he's been caught out. He was asked to put his hand on his heart and repeat his lies and he wouldn't. He's been caught out lying.

And he's been lying to older Australians having people on behalf of the Labor party and the unions calling them up in the evening, frightening them with these lies.

Now if somebody is running for prime minister and they're prepared to lie about something as important as that to vulnerable Australians, how can you trust anything else he says.

NAOMI WOODLEY: But comments like these by the Liberal candidate for the Victorian seat of Bruce, Helen Kroger do not help the Coalition's cause.

The former senator was speaking to ABC radio's Jon Faine in Melbourne.

JON FAINE: But you do want to privatise the back office if you can and run it more efficiently, there's no doubt.

HELEN KROGER: And we've always said that and under Labor the review commenced under Labor and it's all about doing it better.

JON FAINE: So hence the thin edge of the wedge argument?

HELEN KROGER: Well, I wouldn't put it like that.

KIM LANDERS: The Liberal candidate for Bruce, Helen Kroger, ending Naomi Woodley's report.