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Senate strikes down private health rebate bill; Butler vows to reintroduce identical legislation

Coalition, Greens, One Nation and independents combine to discharge the bill, sinking a planned $3 billion aged care savings package

By LineZotpaper
Published
Updated
Read Time3 min
Sources7 outlets
A Coalition-Greens-One Nation alliance has effectively killed the Albanese government's plan to wind back private health insurance rebates for Australians aged 65 and over, with the Senate discharging the bill on Tuesday. Health Minister Mark Butler has vowed to reintroduce identical legislation on Thursday, calling the move an "absolute travesty."

Opposition health spokeswoman Anne Ruston and independent senator Jacqui Lambie moved the motion to discharge the Private Health Insurance Amendment (Modernising the Private Health Insurance Rebate) Bill on Tuesday afternoon. The move, an alternative to voting the bill down, received support from the Coalition, Greens, One Nation and independent senators, meaning the legislation cannot continue through the Senate in its current form.

Butler held a snap press conference on Wednesday afternoon to vow the government would bring the exact same bill back on Thursday. "This is an absolute travesty … that flies in the face of what I thought was a clear understanding across the parliament of the need to fund better aged care services," he said, blaming what he called "a rush of blood to the head by the new leadership of the Greens party, that's all become a bit of a pile on in the Senate and a discharge of a bill instead of a reasoned debate."

The bill would have wound back the rebate Australians aged 65 and over receive on their private health cover from April next year, banking $3 billion over four years to be spent elsewhere in the aged care sector. Butler has said the savings would provide an additional 5000 aged care beds per year.

Opponents argue low- and fixed-income pensioners would be least able to absorb the extra costs, estimated to run to hundreds of dollars a year for those with the highest cover. The ABC has reported about $1.6 billion of the forecast savings would be clawed back from pensioners.

Ruston said Butler should "take the hint" and drop the cut for good. "Today the Senate stood with older Australians. Labor was left standing alone with its cuts," she said. Greens leader David Shoebridge said his party would support the legislation if pensioners were exempt, arguing it was "plain offensive to see Labor looking for over a billion dollars in savings from cutting rebates to pensioners when they refuse to even consider taxing record gas export profits." Lambie accused the government of trying to "balance the budgets on pensioners."

The defeat is Labor's latest in the Senate over reforms to the $40 billion aged care budget. The Greens-Coalition alliance had already forced the government to spare Meals on Wheels from a merger, provide more human oversight of algorithmic assessments of clients' needs and fast-track 20,000 home care packages.

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Analysis

Why This Matters

  • The discharge kills, for now, a bill that would have redirected $3 billion in savings over four years to aged care, money the government says would fund an extra 5000 beds a year.
  • Over-65s with private hospital cover would have faced higher out-of-pocket costs, with the most expensive policies hit by hundreds of dollars a year.
  • The standoff leaves the aged care funding plan unresolved and tests whether the government can negotiate a Senate deal.

Background

Australian governments have long subsidised private health insurance through a rebate, and the proposed change would have wound that rebate back for Australians aged 65 and over from April next year. The government framed the savings as needed for aged care at a time when the aged care budget is under strain. The bill is the latest in a series of aged care reforms Labor has tried to push through a Senate where it does not hold a majority. Previous compromises included sparing Meals on Wheels from a merger, adding human oversight to algorithmic assessments and fast-tracking 20,000 home care packages.

Key Perspectives

Government (Health Minister Mark Butler): The savings are needed to fund better aged care, and the Senate's action flies in the face of a parliamentary understanding of that need. He has vowed to reintroduce the identical bill.

Opposition (Anne Ruston): The cut would hurt low- and fixed-income retirees, and she has urged the government to drop it for good.

Greens (David Shoebridge): The party backs reducing private health rebates but wants pensioners exempt, and argues Labor should look at taxing gas export profits instead of cutting pensioner rebates.

Crossbench (Jacqui Lambie): Has accused the government of balancing budgets on pensioners and criticised the bill.

What to Watch

  • Whether the identical bill is reintroduced and meets the same fate on Thursday, or is amended to win support.
  • Whether the government moves to exempt pensioners, which the Greens have said would win their support.
  • Whether the Coalition holds its position or the two major parties seek a compromise on aged care funding.

Sources

Zotpaper

Written by software from the reporting listed above, scored by an automated standards desk, and published without a person reading it first. If something here is wrong, tell the editor and it will be put right.

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