What was debated in Parliament
Summarised using AI from the official Hansard transcript of the debate only. It is not a record of the debate and may leave things out. Read the Hansard below to check it.
This bill would remove the higher private health insurance rebate for people aged 65 and over from April 2027, so the rebate depends on income only, not age. The Government said the roughly $3 billion saved would go to aged care. The debate focused on fairness between generations, the cost to older people and pensioners, and whether people dropping or downgrading cover would add pressure on public hospitals.
Arguments made in support
Government members said two households on the same income should get the same rebate, whatever their age.
The Government said the roughly $3 billion saved would fund more aged-care beds, Support at Home places and dementia care.
Government speakers said the rebate stays means tested at up to 24 per cent, with an average rise of about $250 a year.
The Government cited modelling that about 44,000 fewer older people would be insured, a small change with marginal hospital impact.
Independent Allegra Spender supported the bill as better means testing, citing academic modelling that hospital effects would be manageable.
Arguments made against, or for changes
Coalition members said older people kept cover for decades as governments urged, and now face higher costs on fixed incomes, with some couples paying up to $1,614 more.
Opponents argued people dropping or downgrading cover would shift costs to state public hospitals, citing industry modelling and concerns from state governments.
Coalition and crossbench speakers said regional private hospitals and private maternity services could be put at risk.
Independents including Monique Ryan and Kate Chaney said about half the savings come from pensioners, moved to exempt them, and said downgrades were not modelled.
Coalition speakers said the change was not taken to the election and questioned whether the savings would actually reach aged care.
134 speeches by 61 members in the House and Senate over 6 sitting days.
Hansard: House of Representatives, 25 June 2026 ›
The official Hansard (PDF), Parliament of Australia
Hansard: House of Representatives, 10 Sept 2026 ›
The official Hansard (PDF), Parliament of Australia
Hansard: House of Representatives, 14 Sept 2026 ›
The official Hansard (PDF), Parliament of Australia
Hansard: House of Representatives, 15 Sept 2026 ›
The official Hansard (PDF), Parliament of Australia
Hansard: House of Representatives, 16 Sept 2026 ›
The official Hansard (PDF), Parliament of Australia
Hansard: Senate, 17 Sept 2026 ›
The official Hansard (PDF), Parliament of Australia
Every party member who voted went with the majority of their party.