Australian Labor pushes $250 senior health insurance rebate cut

The Australian Labor government is set to scrap the age‑based rebate for private health insurance that currently benefits seniors, replacing it with an income‑based system. From April 2027, more than three million Australians aged 65 and over would pay about $250 extra per year for private cover.

Health ministers in New South Wales, Queensland and Tasmania warned the change could strain public hospitals as seniors may drop their private policies. Federal Health Minister Mark Butler acknowledged the decision is unpopular but said the savings will fund expanded home‑care services for the elderly. The proposal still requires Senate approval and the support of the Greens, while the coalition opposes it. Treasury estimates only 44,000 of the three million affected would shift to the public system, though a Redbridge poll found 40% of seniors say they would drop private cover if the rebate is removed.