Question Time AU

Bill Debate · Second Reading

Private Health Insurance Amendment (Modernising the Private Health Insurance Rebate) Bill 2026; Second Reading

House of Representatives · Thursday 25 June 2026

Official Hansard for this day (APH) · Read this debate on OpenAustralia

At a glance

The debate concerned the removal of higher private health insurance rebates for Australians aged 65 and over to address intergenerational inequity. The government argued that the current system unfairly subsidised older Australians who already receive significant benefits, while younger policyholders cross-subsidised their claims. Savings from the rebate reduction were proposed to be reinvested in aged care services. The bill aimed to simplify the rebate structure and ensure equal treatment regardless of age. The debate concluded with the motion being adjourned.

Outcome

The debate was adjourned.

Summary in reported speech - not a transcript. AI-generated, so check the official record before quoting.

How the debate unfolded

Opened the debate

Butler argued that the bill addressed intergenerational inequity by removing higher rebates for people aged 65 and over, which had been introduced in 2004. Butler stated that the current model was difficult to defend because it provided different support levels to households on the same income based solely on age. Butler noted that older Australians already benefit from community rating and higher average claims, making the extra rebate misaligned with the goal of incentivising take-up. Butler explained that the changes would take effect on 1 April 2027 and would impact approximately 3.2 million people, with an expected average premium increase of around $250 per year. Butler emphasised that the $3 billion in savings would be invested in aged care, including more residential beds and Support at Home packages.