Politics · Australia · 10 hrs ago

Senate blocks Labor plan to cut older Australians’ health insurance rebate

Senate blocks Labor plan to cut older Australians’ health insurance rebate

Australia’s Senate blocked Labor’s plan to reduce the private health insurance rebate for people over 65.

The proposal would remove the larger rebate older people receive, including an extra benefit for those aged 70 and over.

Labor said the change would save the federal budget $3 billion from April 2027 and help fund aged care.

The Greens said they would support the plan only if pensioners were exempt, while the Coalition and other senators also helped block it.

The government’s modelling estimates almost 80,000 older Australians could drop private cover by 2028–29 because of the change.

State health ministers have warned that losing private cover could add pressure to public hospitals, while older people’s advocates say pensioners should not have to choose between healthcare and everyday costs.

Health Minister Mark Butler says Labor will reintroduce the same bill on Thursday, and the Greens have invited the government to discuss a pensioner exemption.

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What people are saying

Mark ButlerHealth Minister
It is important that the parliament have a proper debate, that these really important questions for older Australians are not held hostage to political stunts, but instead that the elected members of the House of Representatives and elected senators take these issues seriously and debate them properly
via Guardian Australia
This afternoon we saw the resurrection of the ‘no-alition’ under the new leadership of David Shoebridge, a partnership that is determined to thwart the agenda of the government without debate
via SMH
David ShoebridgeGreens leader
We will pass it in a heartbeat. But we will not be joining with Labor to punch down on pensioners in the middle of a cost of living crisis.
via Guardian Australia
Anne RustonOpposition health spokeswoman
Until the government’s prepared to be transparent so that Australians can see: whether this really is a save; who it’s going to be impacted; and how much they’re going to be impacted by. I think the government should do that before they come back and ask the Parliament to consider anything further
via SMH