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.