The Greens have just voted to remove the Private Health Insurance Amendment (Modernising the Private Health Insurance Rebate) Bill 2026 from the notice paper. The Greens support reducing private health rebates, but that must not be by denying an estimated 1.2 million pensioners access.
We are happy to work with the Government to reduce the private health insurance rebate, but it cannot smash pensioners with no alternate plan to ensure they are receiving the health care they need. The ultra-wealthy do not need this rebate, but that is not who this Bill is targeting, this Labor Bill is targeting pensioners.
The committee heard that many may struggle to meet higher private health insurance premiums, potentially forcing people to downgrade their level of cover or to cut back on other essentials such as heating, cooling and putting food on the table.
The strain on public hospitals and chronic underfunding has not been addressed by the Albanese Labor Government and this Bill, while it promised not a single additional dollar for public health, would only have made that worse.
The Australian Greens have a policy position of redirecting public funds that are currently used to subsidise private health insurance, including the tax rebates, to the public health system. The Government has not linked the revenue enabled by this bill to investment in the public health system. Instead, they are taking support of pensioners, some of the people most in need, with no plan to ensure they receive adequate healthcare.
As stated by Leader of the Australian Greens, David Shoebridge:
"We have been clear with the Albanese Labor Government for months now, we are happy to work with them to reduce the private health insurance rebate, but we will not punch down on pensioners to do that.
Labor has been told time and time again what we need for our support, and they refused to seriously engage.
"We have said we are ready to take on the 1% in this country and create a more equal Australia. We don't get there by punching down on pensioners.
"The Greens will support this Bill to reduce Private Health Insurance rebates with a simple clear amendment, protecting pensioners.
"It is 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.
We have a simple message for Labor today, tax gas multinationals not pensioners, then you will get Greens support."
Lines As put by Senator Jordon Steele-John, Australian Greens Spokesperson for Health:
"The Greens have been raising serious concerns for months about the government's plan to reduce the private health insurance rebate for older Australians.
"We are particularly concerned about the impact these changes would have on pensioners, who are less able to absorb additional costs in the middle of a cost-of-living crisis.
"We've heard that many older Australians could be forced to downgrade their health insurance cover or cut back on essentials like heating, cooling and putting food on the table just to maintain their current level of cover.
"That is deeply unfair. The government shouldn't be piling more financial pressure on pensioners who are already struggling with the cost of living. There are other ways to increase investment in aged care without shifting additional costs onto the older Australians least able to afford them.
"I have made the Greens' concerns very clear to the government. We cannot support this legislation unless it is amended to ensure pensioners aren't left bearing the brunt of these changes.
"Unfortunately, the government has not committed to making the necessary changes to protect pensioners. That's why we are supporting Senator Lambie's motion to discharge the Bill from the Notice Paper.
"If the government wants to pursue changes to the private health insurance rebate, we remain open to that conversation. But we cannot support this version of the Bill when it leaves pensioners exposed to higher costs.
"The government needs to go back to the drawing board and find a fairer way forward, one that ensures pensioners aren't forced to choose between their health insurance and other essentials."
As stated by Senator Penny Allman-Payne, Australian Greens spokesperson for Older People:
"Pensioners are already doing it tough. The government shouldn't be taking money out of their pockets to fix their mistakes in aged care.
"Labor is choosing to take money from pensioners to help pay for running repairs to its catastrophic aged care reforms.
"For someone on a pension or a part-pension, a few hundred dollars a year in additional costs can be back-breaking.
"Older people across Australia are already forced to make impossible choices about groceries, heating and cooling, medicines and other essentials. Driving up the cost of their private health insurance is just another kick in the guts that could have devastating consequences for their health, independence and quality of life.
"The government has failed to fix this bill, protect pensioners and guarantee essential aged care services."
