The Coalition and the Greens have joined forces to discharge the Albanese government’s alterations to the private health insurance rebate, in a stunning blow to the measure announced in the budget.
Under measures announced in the budget, private health insurance was set to become more expensive for older Australians as the government prepared to rip $3 billion out of subsidies over the next four years, and $1 billion a year after that. More than 3 million Australians over 65 have private health insurance.
Health Minister Mark Butler.Alex Ellinghausen
Opposition health and aged care spokeswoman Anne Ruston and independent senator Jacqui Lambie tabled the motion to have the Private Health Insurance Amendment (Modernising the Private Health Insurance Rebate) Bill 2026 removed from the Senate notice paper. It was successful with the support of the Coalition, independents, Greens and One Nation.
“Today the Senate stood with older Australians. Labor was left standing alone with its cuts,” Ruston said. “This is a win for every pensioner who has paid their premiums for decades and was about to be punished for it.
“Mark Butler should take the hint. Don’t try to sneak this cut back onto the agenda. Drop it for good.”